Daily Circulation, 1640. The Oamaru Mail. THURSDAY, SEPTEMBER 13, 1894.

Oamaru Mail, Volume XIX, Issue 6048, 13 September 1894, Page 2

Daily Circulation, 1640. The Oamaru Mail. THURSDAY, SEPTEMBER 13, 1894.

The exciting rumors which have been disquieting banking and commercial circles almost ever since the first step was taken towards nationalising the Bank of New Zealand have now assumed definite shape. The Bank of New Zealand and the Colonial Bank have, to all intents and purposes, become one great banking institution, and thus still another step has been taken in the direction of securing a strong State Bank. Whilst the negotiations were proceeding it was rumored first that the Bank to be absorbed was the National, and then that it was the Colonial ; from which it would appear that to both these banks advances had been made on the subject of their amalgamation with the parent bank of the colony. It is just on the cards that the amalgamation scheme may be intended to comprise the third bank, and that before long as a matter of financial desirableness the National Bank also may cease to be an independent concern. This event would not surprise anyone who has thought out the subject, and it would certainly be productive of financial strength and national utility. We are steadily marching on towards the goal of socialism, the only possible solution of the troubles which afflict every section of society. Some day we shall all be shareholders in the Bank of New Zealand, and, probably, by that time, we shall have made still greater strides on the road to nationalising the elements and instruments which are necessary for a nation's comfort and true greatness and independence. But, to return to the all-importantbankingquestion: One of the stipulations of the amalgamation is that the Globo Assets Company must be severed from the Bank of New Zealand. This is, we should say, an indispensable condition, for the sake of the Bank of New Zealand itself, as well as to secure the stability of the new combination. But how the severance is to be accomplished does not yet appear. The wisest course would be to come to an understanding with the Government to take back the lands which were alienated with such injurious effect to all concerned, during a period of temporary insanity ; the prices to be such as to allow a margin for the loss that would necessarily accrue before the land could be placed in the hands of settlers. It would pay the Bank better to accept two-thirds the value of their landed estates than to retain them year after year without deriving any revenue whatever from them. The Bank has already held them too long. If it had, years ago, accepted, in accordance with our advice, what these estates would have realised at the time, it would not have been hampered with an asset the questionableness of which has caused no end of trouble, and the colony's progress would not have been arrested in such a way as to react injuriously upon the Bank itself. It is quite likely that the Government has not lost sight of the necessity that the Bank's estates should be utilised at once for the furtherance of settlement. Another interesting question that arises out of the amalgamation is : Who are to be the directors, and the chairman, and the general manager of the new organisation ? The constitution of the directorate is of vital importance It is a pity that one could not go beyond the world for men who have to peform such highly responsible duties. In commercial circles there are "so many wheels within wheels" that dispassionate honesty is a rare virtue. But it is proposed to form the directorate from amongst the keenest business men of the Empire City. The names mentioned are substantial enough, and it is to be hoped that they are those of men who will thoroughly realise the magnitude and the critical nature of the interests over which they are to preside. As to the presidency and the general managership, numerous names have been mentioned in connection with these appointments, which ought not, above all, to be influenced by political or any other considerations, or personal friendship, or sympathy, or anything else but a desire to promote the welfare of the Bank and to make its management such as to ensure respect and confidence everywhere. We believe that the colony is to be sincerely congratulated on what has taken place so far, and all the arrangements which are to give effect to the great design in view should be of the most unquestionable character.