THE NEW BANK BILL.

Otago Daily Times, Issue 10193, 30 October 1894, Page 3

THE NEW BANK BILL.

THE AMALGAMATION QUESTION.

CONSENT OF PAP.LIAMENT

NECESSARY.

(Fbom Ons Own Cobbespondent.)

'Wellington, October 18,

The bill dealing with the Bank of New Zealand as regards any proposals in the direction of amalgamation ir a remarkably brief measure of only three short clauses, being entitled an act to amend " The Bank Note Issue Act 1893," and to prohibit, unless with the consent of Parliament, the .imalgamation of the Bank of New. Zealand with any other bank. The following is the full text of the bill :—

•'Beit enacted by the General Assembly of New Zealand in Parliament assembled, and by the authority of the dame as follows: —

" 1. The short title of this act shall be ' The Banking Act 1894-.'

"2. The words 'by at least the sum of the uaid-up capital in the first proviso to section 5 of "The Bank Nota Issue Act 1893" are hereby repealed.' " 3. It shall not be lawf nl for the Bank of New Zealand to amalgamate with any other banking company or corporation, whether by way of purchase or sale of assets and business or otherwise howsoever, without the consent of Parliament."

This bill has caused the Cabinet the greatest of anxiety, and there has been considerable difference of opinion among the Ministers upon the question. The bill' indicates a complete change of front within the last few days. It is well known, as I telegraphed yesterday, that a previous bill had been drawn up and printed, which instead of prohibiting amalgamation definitely provided for it without the special sanction of Parliament, provided the consent of the Governor-in-Council was obtained. It also set forth the matters concerning which the Governor was to satisfy himself before giving his sanction to any such amalgamation, and gave certain powers as to investments in debentures of the Assets Company. However, for some reason not yet come to light, this bill was never circulated outside the Cabinet circle, and the new measure, which it, will, be seen prohibits amalgamation without parliamentary sanction and makes no mention of the Assets Company, has taken its place.

Section 5 of "The Bank Note Issue Act 1893," referred to in the new bill, after defining the power of the Governor-in-Council by proclamation to make notes a legal tender, goes on to provide that " no proclamation shall ba made unless the Governop-in-Council is satisfied that as between the bank and its creditors its assets exceed its liabilities ' by at least the sum of the paid-up capital,' and the reserved profits." The bill now introduced repeals the words " by at least the sum of the paid-up capital."