Union Bank of Australia.

Otago Daily Times, Issue 526, 27 August 1863, Page 5

Union Bank of Australia.

Dunedin, 22nd August. 1863. To his. Honor the Superintendent of Otago Dunedin. Sir—l do myself the honor to acknowledge receipi of your letter of yesterday's date, in which jou stati that in cons-queiice ofthe disarrangement into which from various causes, the Government had beei thrown, so much additional work had devolved upo: you that you had been pree'udeci from giving tha attention to my frequent references to that'state of th< Government account to which you otherwise would and Inrther, that notwithstanding this, and youi statement that the Council would, before its sittinj closed, make prov-sion for carrying on the busines ofthe Government, I insisted that security for thi overdraft should be given, and thatycu inform tne t< what further extent the Government would requin assistance—requests, Avhich you are pleased to say that on reflection I would probably see to be im possible for you to comply with, and, therefore barely courteous in me to press. You are further pleased to state that if the coursi taken by me Avas not actually adopted with a desin to embarrass the Government, it might have that ef feet, ancl while you are good enough to make allow ances for me under mcli unusual responsibilities, yoi have no alternative but that of requesting me to s'enc a s-titement of account for the auditors' examination when the balance will be paid to the Bai.k. In reply, I have the honor to state, ivhile makim every allowance for the difficulties and extr; work to which yon to refer to re uind you, that i is now upwards of three months since in yom letter of Ist May, you informed Mr Jacksoi that bonds for L 30,000 could at once be placec in the Bank's hands as security for the Government's overdraft, which was then ia consequence permittee tor^ach L-50,000, and that sub-equently on,your pro raises that LSJ,QOO (at least, 8 per cent, debentures; should be placed in my hands before tbe departure oi the August mail, in expectation of whh-h the overdraft had been allowed to reach L107.0G0. (;n theotl instant, when in order to insure their reaching Melbourne in time for transmission, I applied for thf bonds to go per Omeo, but with which you wer< unable to comply; and, as on the 17th you only senl me L 29.000 (LIO,OOO of them incomplete), without in structions for their disposal, I felt it my duty, without further delay, as the amount was still increasing, tc request an interview for the purpose of ascertaining what the probable requirements of the Goveramenl would be, aud when some debentures or other security for those advances would be placed in mA hands. As I received no reply to my letter of the 18th or that of the oth, wherein I h,ad made a rimiiai application, and as the overdraft had on the lflfcl reached Ll4O O<P without your having made am arrangement for such accommodation, it became hia unpleasant duty at our interview ou the 20th inst to

As I received no reply to my letter of the 18th or that of the oth, wherein I h,ad made a Similar application, and as the overdraft had on the lfifcb reached LUCI.OQ3 without your having made any arrangement for such accommodation, it became my unpleasant duty at our interview ou the 20th inst to

il tell your Honor plainly that, in order to justify me 0 in allowing sush an advance which it appeared you wished still further to increase, it was absolutely c necessary that I should have a definite arrangement i- as to the extent of your demands aud the security to s be given; and I exceedingly regret tbat in disidiargn ing- this duty you should ttiiuk that I pressed the 11 matter too strongly. a Under these circumstances, and as I asked for - nothing but what I hid a right to expect, and that I. you would, without difficulty or hesitation, grant it, I take the liberty of saying that it is scarcely fair towards tbe Bank, or just towards myself, for your Honor to remark that the course pursued was either intended or calculated to embarrass the Government, and I now disclaim all such intentions, aud beg to assure you that I was actuated only by a sense of my duty to the Bank, and a desire to as'ist the Government, if proper explanations were afforded rae. Your Honor wiil pardon me when I remind yu that I did not, at the interview on the 20th, & referred to, or in any letters of that date, reuse to supoly the G vemmeat with means to carry on the business of the country ; I therefore submit that in ' using this, and the al egation that I intended to embarrass the Govern me t, as pleas for removing the account, is a course of con-iuct wholly at v.riance with what a consideration of our uniform liberality to • the Government, this s-:ank might reasonab'y have expected at its hands; and I trust that on reconsideration, our existing relations will not be disturbed It has been the desire of tbe Bank to afford the Go vernmfnt all reasonable facilities iv ths shape of advances, aud while by our cmtraet your overdraft is limited to L 30.000, we have, as already stated, allowed you to draw upwards of L 140,000, aad I be™to say that I much regret that the course your Honor saw fit to take in regard to my application precluded me Irom further assisting the Government > during iis present exigencies; but you will allow me s to remind you that the only information you gave ms 6 v/as that the estimated revenue was about L1,030,C00, • and the expenditure LBOO,OOO odd ; and that you = could give pro nise as to how soon debentures could be 3 placed in my hands to cover the present advance. I 1 was, therefore, left in the greatest uncertainty as to • the extent of your wants, and when security would 5 tie provided; and hence you forced upon me the '■ uu--1 pleasant alternative of asking the Government to • provide funds for further demands on the Bank > until some satisfactory arrangement should [be made. On behalf of the Bank I am prepared to treat with the Government on ! the same liberal spirit tint has hitherto eharac--1 terised aii our dealings with ifc, and I hope the pre- '■ sent misunderstanding will therefore be speedily arranged. I have the honor to be, sir, 1 "Your obedient Servant, ; (Signed) George Cowie, Interim Manager. 24th August, 1863. George Cowie, Esq., Manager of the Union Bank of Australia, Dunedin. Sir,—ln reply to your letter of the 22ud instant, I have tbe honor to inform you that the rurther demands oa the Provincial Government made by . you on the afternoon of the 21st instant, to the effect that the Customs Revenue of the ' province should be mortgaged to you before you would consent to honor any further cheques of the Provinr cial Treasurer, have .finally determined the Govern- , ment to withdraw the Provincial account from the Union Bank. [ Under these circumstances a detailed reply to your \ letter of tbe 2'2nd instant is scarcely necessary. I have the honor to be, Sir, Yours, Ac, kc, John Hyde Harris, Superintendent.