Bank of New Zealand.

NZ Truth, Issue 441, 6 December 1913, Page 4

Bank of New Zealand.

Hon. John Duthie Talks Some Sense.

This journal constantly points attention to the rotten banking laws of the Dominion, and, m this connection, it never tires m drawing attention to the grave dangers arising from the dual control of the Bank of New Zealand, consisting of a Board of Governors made up by four State nominees and two shareholders 1 repre* sentatives.' This absolutely vicious system has lasted for twenty years past, and it appears it will be continued for a further period of twenty years. The Hon. John Duthie, who Is a recent appointee to the Upper House by the Massey Government; gave the BankIng Bill when read for the second time a solid dusting. In. fact, he was almost savage m: his attack upon the measure, and for this "Cambist", returns thanks. It is refreshing to find tnat the gross corruption which Is the outcome of appointing State nominees to the Board is beginning to hurt m quarters least expected. The truth Is that the Board of this Bank has long been -a menace to thp whole common - ity. We have no time for Mr. Duthie's ideas pf banking. But we have every respect for his views on the rotten constitution of the Bank's Board of Directors, and his strictures regarding political interference with the Bank's staff. From every quarter of tho^Pc^S minion complaints reach ug-jtfg&iHßp forenco m business / ■ttQ\s3s&Ußßß^ from meddlesome d&^ixi/OSm^^B^^ a pity Mr. Duthie did 'vMW^»i l|) ia aspect of the question. Ha/-"* he ltt ts place In the Upper Chanjr 1 " 6 * mentionei] SOME OF THiy^ S f < I«^jßtaS connected with the V^^^^^^hHßß land directors; be wouldj^MMJ^rone^ immense service to the^^^fnuon- It Is time both the eleo^lnd nominatea directors of the banlc^vere done away with. A radical change is needed In that department, even though tht bank proceeds as the recent Bill enacts for the next twenty years. We quoXo a portion of Hon. Mr. Duthie's speech as reported m the "Dominion" newspaper. It is almost as good as anything ever written here: "There had been no such ability . shown by the State's managers of the hank as was alifeg**d. On ths lodtrary, the State's management had been bad. Tho chairman, directors, and inspectors had been changed repeatedly, having been removed for some political purposes after gaining experience. Tho Government m, no way deserved the credit given to them. Good men should nave been secured to control the bank, and their services should have been kept. Also, one of the fundamental rules about banking was that the directors should not bo engaged m. business>i for ; IT WAS MANIFESTLY WRONG that men m trade should have the right to know what other men wore doing through the "bank books. That rule had not been observed m the choice of directors of the Bank of Now Zealand. Tho State had shown no capacity to manage tho bank. Tho remarkable success of the Dominion had carried tho bank along by itself." Here is also another slab of pood sound common sense from this gontloman. What a slap m the fuco.lt it* for the Government which prides itselt l upon "Reform"! !■ "He was sorry tbo BUI was 'jefore Parliament. Ho was sorry hi«;frleudo of the Government had NOT FELT THE RESPONSIBILITY upon them to establish tho bank on n sound basis. This would have struck confidence Jnto tho financial world, find built up the credit of our Dominion. It would hnvo been better, too, if the shares had been hold by local shareholders, and not by m«m jibroau, unacquainted with our country,"