BANKS AND THE PUBLIC.

Oamaru Mail, Volume XXXIX, Issue 12306, 5 August 1914, Page 5

BANKS AND THE PUBLIC.

AN ELEMENT OF STABILITY,

By Telegraph,

(Special to Oamaru Mail.) Wellington, August 4. During the passage of the Bauking Bill through the House of Representatives this afteronou the Leader of the ■Opposition raised the question of interest being pushed up to an unduly high level. He suggested that it would be- beneficial if the Minister of Finance communicated with the majiagers of banks, privately or even from his position iu the House, expressing the hope that every effort would bo made to keep things on a normal level. This would tend enormously to sustaining a proper state of public feeling even if the worst happened; in Europe. ! "I have already seen some bank managers," replied the Minister of Finance, "and I can give this assurance that neither the bank managers, the Government, nor Parliament, nor, I hope, our people, are losing- their heads. We may all go on with quiet confidence that our country is sound and our banking institutions are sounder today, I am informed, than they have ever been in the history of tho country, and the Australian banks are also in a particularly strong position. The banks that are connected with London have taken a- step, which - it' is not wiso to disclose, which enormously strengthens their position, so that the public may rest fully assured that our banking in a thoroughly sound position to-day. I hope the people have tlie same confidence as the bank.managers.. Whatever .difficulty • crisis arises, if we only keep our head's 110 troublo at all will arise financially. It maj be- that if extreme steps axe taken in Europe we may ask our people to make certain sacrifices, but I do not think they will be serious, but will be such as everyone ill our young country will'bo--willing 'to make." STATE BEHIND THE NOTES.

The Bill which was under"discussion was put through the House of Representatives and will be dealt with tomorrow in the Legislative Council. It gives the Governor-iu-Council power by proclamation to declare that the notes of any bank named thereon shall during the period limited by tho proclamation be every where within New Zealand .legal, tender. . The conditions of issuing such proclamation are ilia); the must be satisfied that the assets of each bank named exceed its liabilities by at; least the amount of its paid-up capital or in the case of a, bank having headquarters outside New Zealand! that the assets within the Dominion exceed its liabilities. The Governor, before issuing the proclamation, may require that adequate security be given by the bank that after the expiration of the proclamation it will pay gold Upon presentation of. the notes, while clause .4,- the most important of the; Bill, reads: "At any time during six months after tho expiration- of the period' limited by an original proclamation under . section 2 hereof or.,by successive proclamations thereunder, if there have been more than one, the Minister of Finance,, on being satisfied that a bank note covered by any sucli : proclamation has been duly presented for payment at tho hank issuing the, same and has not been paid, shall, without further appropriation than this act, pay the same in gold to any bona-fide holder not being si bank, who. may present tho same for payment at- the Treasury."