THE BANK OF NEW ZEALAND

New Zealand Herald, Volume L, Issue 15296, 8 May 1913, Page 8

THE BANK OF NEW ZEALAND

LEGISLATION TO COME. OTHER INSTITUTIONS AFFECTED. [BY TELEGRAPH. —OWN CORRESPONDENT.] Wellington, Wednesday. " There will be some important banking legislation brought down during the com- i ing session," said the Prime Minister (the Hon. W. F. Massey), in conversation with ' a reporter this afternoon. In tho first place, he continued, there would be the ' question of the renewal of the Government guarantee, which expired this "year. There- was also the proposal to give the newly-started Commercial Bank of Australia power to issue notes, which it does not at present possess. 1 •':■'.•■ v*.---' ' The ; most important legislation would, he added, be in connection with the Bank of ; New Zealand. There was evidently a de- < cided difference of opinion between the directors and the shareholders at the present time, and until that was settled ho could not even suggest what course he pro- , posed to follow. ' "Will you," he was asked, "legislate according to the desire of the majority?" " Not necessarily so," was the reply. " I shall consider the interests of the country as a whole, apart altogether from the interests ,of the shareholders. I know exactly what course I propose to take, but , until I know what the shareholders &03. directors of the bank have decided I am not in a position to make it public." v TERMS 07 NEW SHARE ISSUE. 'REPLY TO MR. WATSON. - ,j [BY TELEGRAPH.OWN CORRESPONDENT.] ' Wellington, Wednesday. ; The chairman of directors of the Bank of . New Zealand (Mr. Harold Beauchamp), ; •in a statement regarding the proposed • issue of shares by the Bank of/New Zea- ! land, says —" I" think Mr. Watson is somewhat hard pressed when he quotes as ' an authority in favour of the issue of ' shares at par a Sydney firm of sharebrokers. 'Quite obviously such a firm,. | anticipating big business in the sale of ' ' rights,' would encourage the directors of ' a successful corporation to offer shares at a figure substantially below their mar- 1 ket value, but in the interests of such an ! institution as the Bank of New Zealand ! that course does not commend itself to ! me, and I feel sure would not be favoured by Parliament. "In speaking, of the Bank of Austra- \ lasia, Mr. Watson says :— is left to the • shareholders to accept or Teject the board's proposals in regard to the issue ' of shares.' Now. if the board of the Bank ! of New Zealand obtains the necessary ' legislative authority, its shareholders will bo placed in . precisely ihe same position as those of the Bank of Australasia. There will be no objection on their part to accept ' the shares offered to them, but I venture ] to predict they will do so without hesitation." , .-■