BANK OF NEW ZEALAND

Otago Daily Times, Issue 18898, 26 June 1923, Page 8

BANK OF NEW ZEALAND

MR LYSNAR ATTACKS THE CHAIRMAN. “LIBELLING THE LAND PROPRIETARY.” (From Our Own Correspondent.) WELLINGTON, Juno 25. In his speech in the debate to-night, Mr Lysnar at tackl'd Sir George Elliot in his capacity of chairman of the Bank of Now Zealand directorate for his recent remarks at the annual meeting of shareholders of that institution. Ho said that gentleman should not bo allowed to go about discrediting the dominion and those who were the mainstay of the dominion and of the bank itself. Ho charged him with having made a libellous statement against the land proprietary of the dominion, and lie appealed to the Government to stop him from doing so. The heads of other banks did not slander the titles of the people. The chairman of the bank apparently thought it was his duty to startle the people by saying that land values were 100 high. Mr Wilford: “Hear, hear. They will salt you for their dividends.” Mr Lysnar: “He denounces the titles of his best clients and frightens capital.” As the Government nominated more than a majority of the directors on the board it was its duty to see that this was stopped — (Mr Wilfovcl: “Hear, hear.”)—and if it was not stopped something else must happen. Ho (Mr Lysnar) did not wish to reflect _ on the heads of any of the other banks. They did not do this sort of thing, but he urged the Government, in fact he said it was their duty in the interests of the dominion, to see that the whole of this should be stopped. Sir George Elliot had criticised the farmers’ scheme and their co-operative effort at a time when the country was in tightened circumstances, but this was not the time to 'slander the people’s titles and the values of land, and that sort of thing He also referred to Sir Harold Beauchamp's statements in regard to the value of dairy land, and said the landowners did not want the heads of those institutions to be howling at them. The farmers were just as well able to handle their business as anyone else. At a time like this it was only to be expected that everyone had his troubles. Such troubles were widespread. Financial firms in America wore going crash. Mr Lysnar went on to criticise some of Sir George Elliot's statements in detail. A Labour member interjected; “He’s a Bolshevist.” Mr Lysnar (pausing momentarily): “ I was just going to say he is a bit, but the others are worse.”—(Laughter.) Mr Lysnar reminded Sir Harold Beauchamp that he also had decried the backbone of this dominion—the men who were entitled to better respect by the heads of an institution such as the bank. Ho went on to urge that the Government nominees on the Bank of New Zealand directorate should not hold shares. It was their duty to represent the Government only, and no shareholders at nil. The Government should scrutinise any recommendations that came from these directors, and go over them very carefully. Dealing with the moratorium, Mr Lysnar said it would not be wise to try to force on the w’hole of the system put forward bv the advocates of the agricultural banking scheme. The alternative was that the Government should consider the question of allowing the Advances Department to issue debentures in order to meet the demands of the moratorium. Mr Massey: “Wo are dome it now.” Mr Lvsnar: “I am glad to hear the Prime Minister say that.” The £3500 advances would not altogether meet the demand. They would not bridge over the difficulty of the higher amounts. If the Prime Minister would extend what he was doing now and allow the department to issue debentures at 5i per cent, with a sinking fund of at least one or one and a-h-alf per cent, for 26 or 36 years to bo registered against the titles it would be a step' in the right direction. He did not suggest that they should go to the Homo market for this money. He suggested that the money should bo obtained here. All that was wanted was to make the terms acceptable to the mortgagee and the mortgagor. , Mr Wilford: “What would you estimate the amount at?” Mr Lysnar: “Fifty or sixty millions.” Mr Wilford : “Oh, it’s more than that.” An Hon. Member: “A hundred, and fifty millions.” Mr Lysnar; “No, I am told on the authority of those interested in finance that it is about fifty or sixty millions. That is about the amount.” Mr Massey: “Every good security will be taken up by the end of the moratorium.” Mr Wilford was understood to say that Mr Lysnar had adopted his scheme. Mr Lysnar: “I do not want your scheme. I believe the Prime Minister will adjust tills.” Mr Massey: “I’ll do it all right, don’t you worry.”