Threatened Financial Crisis.

Opunake Times, 3 July 1894, Page 3

Threatened Financial Crisis.

Legislation on behalf of Bank of , Now Zealand. QoYornms:at Guarantee Two Millions. Wellington, June 29. The Bank of New Zealand Share Guarantee Bill has been circulated. It provides for the further extension of the capital of the bank by the issue of preferential shares, secured on the liability (?) of the bank to an amount not exceeding, two million pounds in f ].• shares, with no further liability ; the directors to levy £500,000 of reserve capital; preferential shares, with dividends, to be guaranteed by the colony; the Colonial Treasurer to appoint a receiver in case of default of the two million preferential stock—one million to be at the disposal of the bank, and the remainder to be invested by the Treasurer (or as provided by the Legislature) during the currency of the shares; no dividend to be paid without the consent of the Treasurer ; the head office to be removed to Wellington ; special auditors to be appointed, with extraordinary powers. Wellington, June 80.

The passage of the Bank of New Zealand Share Guarantee Bill through both branches of the Legislature tides over a grave crisis in the history of the Bank of New. Zealand, and averts a national disaster. The head office of the Bank will be shifted from Auckland to Wellington. The Government are to loan it two millions, and are to have power to control its management. The Bill, in fact, goes in the direction of establishing a State Bank. The Treasurer, in moving the second reading, said the Government only took the extreme step provided under the Bill, owing to the urgency of the case, and to prevent a national calamity. To the motion for committal, Mr Hutchison moved- that a joint committee of both Houses be set up immediately to consider them, and report at a later hour, but the Treasurer vehemently opposed this, saying that delay till daylight would mean that the Bill would not be passed. This was not intended as a threat, but ■ because the London directory had cabled the urgent necessity of being in a position to immediately announce ■that the New Zealand Government Iliad agreed to guarantee two millions sterling to thd Bank. The amendment was negatived by 5l to e, and the bill cpuckly went through the remaining stages. The Bank Shareholders Transfer and the Bank Note Issue Bills passed all stages unopposed. The Council referred the principle of the measure to a select committe, which examined the Premier, Treasurer, and Mr Murray, at one time general manager of the Bank of New _ Zealand. It was four this morning before the Council dispersed, On the House re-assembling tie. Premier desired to say that tbe Parliament of New Zealand had been equal to the occasion. The colony had been, saved from disaster, and what was stated twelve months ago had been maintained, and that was that not a bank in the colony would he permitted to go under, Mr Geo. Hutchison felt constrained to say that he did not know that the colony was to be congratulated on that day’s labor. The Bills had been passed solely on a reflection on the people’s that an enquiry by a special conimitteeT which haa been refused the House, had qn tbe motion of a member of the Government, been granted to the Council. The whole responsibility was for good or evil on the shoulders of the Government. The Premier, amid applause, followed, and said he cheerfully accepted the responsibility. Wellington correspondent to Star.