THE New Zealand Mail. PUBLISHED WEEKLY. THURSDAY, MAY 21, 1896. SUNBEAMS FROM CUCUMBERS.

New Zealand Mail, Issue 1264, 21 May 1896, Page 22

THE New Zealand Mail. PUBLISHED WEEKLY. THURSDAY, MAY 21, 1896. SUNBEAMS FROM CUCUMBERS.

“A thousand pounds was offered on a certain famous occasion in those (lays by a loading financial newspaper for the best essay on the art of extracting sunbeams from cucumbers.” This is what; tlm sarcastic writer of five centuries ahead will, in all probability, write about the St.ilhl priz" for the best essay on tho commercial federation of the Empire. The prize lias been fought for by 150 applicants, it has been won and divided, and, what is more, the two essays which could not ho divided on the question of merit will be printed. What is still more is that these works of genius profound, ingenious, learned though they be, will be forgotten before the ink is dry of their printing. They will repose on the dusty shelves of one of the great provinces of the empire of oblivion, while tlm Empire will continue t<> greet its proverbial pcp Mu tl sunshine without any nearer approach to a closer commercial federal mn. Tim truth is that, limrc is in tho present temper of the public min i of Britum no more love of ail Imp- rial I ‘deration "1 commerce than then; is sunshiuo in a. cue,umber. Air Chumb ai iin, the new

Joseph, appeared a few We -ks ago to spent to the old commercial I’eara Ji wiiosi

dream of the fit kiim he! h u fudilled, in a sense hopulul to the ideuol a commercial federation based on ditlerential tariffs. But Joseph, itturns out, was imsreported by the compiler of cable nows; and, indeed, after reading bis speech at the Canada Club, we are not astonished at that. Ho began in a high state of enthusiasm neatly bottled oil’ in crystal sentences, lie embraced t lie dependencies small and large, ho waved the great Freetrado system over them, and actually performed a tremendous feat of jugglery, conveying the impres-

sion that ho, a Minister of tho Crown, nursed in the great Birmingham-Mau-chester traditions, was ready to throw tho Freetrado system overboard. “ A convinced Freetrader,” lie said in his best manner, “in the sense of believing that tho theory is undoubtedly tho theory on which the world would become most prosperous, yet I have not such a pedantic admiration for it that if sutlicient advantage were offered me I would not consider a deviation from the strict doctrine.” It is as if a man were to say, “I am very fond of my father, whom I revere as the best of men, as well as the best of all possible fathers, but if you offer me a reasonable inducement to cut his throat I am not so idiotically pedantic as to refuse your offer.” AD' Chamberlain, who was discussing the resolutions of the Canadian Conference, deepened the mystery produced by his feat of legerdemain by ostentatiously brushing aside Lord Ripon’s viows which had thrown such cold water on the proposals of the Conference. “I am not convinced of the truth of his statements,” ho said lightly, and then he proceeded to show his own hand, iron under tho velvet glove and tho mysteries. Tho proposals, ho declared frankly, are not sufficiently favourable to the British side. In return for a differential duty on tho raw products from outside the Empire, the colonies must impose very substantial duties against tho foreigner. Lord Ripon had said it would be impossible because tho colonies could not alibi'd totluow away their revenues. To which AH Chamberlain replied that the thing was so enormously advantageous to tho colonies that they ought to think of it.

I'lie truth is out after such a performance. Freetrado is tho breath of tho British commercial system, because that system must have cheap food and cheap raw material. If the colonies could supply all these wants fully, tho question of differential duties would bo merely formal. But as the colonies fall short of tho supply very largely, tho duties bulk substantial in proportion. So long as that is the case, so long shall wo find ourselves listening to the words of patronising refusal. “ Your proposition was made in very good part, but, when considered from tho point of view of British interests, is not sufficiently favourable to bo considered by this country.” These are tho words of tho now Joseph, who is like all his predecessors, except in tho matter of words, and then ho has a surprising coat of many colours. In fact, it is for us a case of sunbeams to bo got from cucumbers. If wo wait for the sunbeam of commercial protection to come from the Freetrado cucumber, wo shall have to do without it for some little time.

BANKING, FISHING AND DISHING. For malevolence, misstatement, unworthy insinuation and suggestion of falsehood our evening contemporary broke his own evil record last week. Tho Colonial Treasurer told the truth at Taranaki, and the devil of the Opposition is shamed into tho crookcdest of all possible crooked courses. To begin with ; no power is givon to tho Bank of Now Zealand, by agreement, or in any other way,to relievo tho clients of tho Colonial Bank; neither the Government nor anyone olse isentitlod to know anything of the individual accounts in any of the lists, or about any transaction in the books of either bank. Wore it otherwise tho object of tho banking legislation of tho last two sessions, which was to restore public eonildeneo, would bo irretrievably lost.

There aro three lists in tho agreement between tho banks, as everybody knows, known respectively by thoir several letters : A, B and C. The accounts in the A list wore taken over by tho purchasing bank (Bank of New Zealand) at the values set down in tho list as good and valid in every way. Those in tho other lists woro regarded as worth tho specific sums set down against them only by way of security pendiug tho taking over, realisation or adjustment of tho said accounts. Tho stipulation was that the purchasing bank should manage, realise, or adjust the accounts in the B and C lists under tho supervision of tho selling bank, but that no increase of indebtedness should lie allowed in respect to any of thoso accounts, except by mutual agreement. Any iucroaso mutually agreed upon is to involve a further guarantee ; while any iucroaso not mutually agreed upon was to bo at tho solo risk of the purchasing bank.

It is manifestly unjust to suggest that tlx. re lias been any increase of indebtedness, 'the attack made on the President of tho Bank of New Zealand and his directors without the smallest tittle of evidence savours of malice. In the case of the President there is evidence of personal animus unconcealed. The whole of tho contentions of our evening contemporary, supplied by a perfectly well-known writer, in respect to the accounts in tho C list apply with equal force to those on the B list. Why, wo may ask, lias the O list been specially

selected ‘i Tin- only difference between the accounts it, question, so far as we have been aide to ascertain, is that thoso on the I! list, were !<• be worked for a longer period Him I hose in I he G list. We come to tho innuendo about the noncxereisc, of the power of veto by the President. By the B ink of New Zealand Share Gii ■ ini M : re Act of IS!)!- it is provided that tiic President shall have and exercise all tlie powers of a director, and that ho shall

also act as a director. Tho insinuation is that, ertuin transactions have occurred which should have been vetoed by tho President. Herein was conveyed a direct and clearly levelled accusation of wrong doing on tho part of the directors whose action should have been vetoed by the President. This, without a tittle of evidence that either any questionable transaction had occurred or that there had boon any necessity for the exorcise of the vetoing power. Lot us, in passing, suppose the case of tho debenture-holders of a company doing

business in the Colony, who had come to the conclusion that it was wise and prudent to forego the payment of interest due to them by the shareholders. It is clear that they would bo the best judges of the matter, having all the evidence before them. It would be wrong and improper for any outsider to say that those directly interested had been guilty of wrong doing. Now we have carefully perused tho agreement, and we unhesitatingly assert that thero is nothing in that document that forcos the buying bank, as asserted, to wipe oil' any liability, either of =£55,000 or of .£55 or of 55 pence due to the Colonial Bank. We declare, further, that Parliament did not rely on the vetoing power of the President of tho Bank of New Zealand with respect to tho power given to that Bank to buy tho assets of other banks carrying on business in tho Colony. Parliament relied on the auditor appointed by tho Governor, and tho power of veto in tho matter ot purchase rested with Parliament itself subject to the certificate of tho auditor. The clause (30 of the Bank of New Zealand and Banking Act of 1895) shows this clearly. We quote it as follows

Section 3 of tho Banking Act of 1891 is hereby repealed, and it is hereby enacted that, subject to the approval of Parliament, as hereinafter provided, and notwithstanding anything to the contrary contained in any deed of settlement or memorandum or articles of association of any bank, or in any Act or law, it shall bo lawful for tho Bank of Now Zealand to purchase and to take over from any other bank carrying on business in tlio Colony, and for such other bank to sell and make over to the Bank of New Zealand, the business and assets of such other bank, excepting such portions ol the assets of tho selling bank as the directors of the Bank of New Zealand and the auditor appointed by the Governor under tho Share Guarantee Act shall certify in writing to be, in their opinion, bad, doubtful or valueless ; and the directors of the Bank ot New Zealand and of the selling bank are hereby empowered to ontor into a contract for such sale and purchase respectively.

Tho certificate of tho auditor was given, and Parliament approved. Tho charge, therefore, levelled at tho president is unfair and quite uncalled for. Tho suggestion that tho president is to enquire into particular accounts carries with it its own condemnation ; and is invidious and despicable.

We have proved that the charges levelled at tho president and tho directors have fallen to the ground; and that the attempt made to placo them in a false position is most unfair. Tho fact that they are all men of integrity held in the highest esteem by the general public is a sufficient guarantee to tho people of Now Zealand that they havo performed their duty safely well, and will continue in that course. Tho attempt mado to belittle the Parliament of New Zealand and the insinuation of corruption against Parliament and Ministry are alike discreditable. They are false to tho aims and aspirations of all right thinking persons in tho Colony, who wish to maintain the Parliamentary standard up to the highest ideal.