THE BANKING BILL.

Otago Witness, Issue 2317, 28 July 1898, Page 24

THE BANKING BILL.

Wellington, July 22. In tha House of Representatives this evening the Banking Bill wa? considered in Committee.

Captain RUSSELL said tbe bill should not be proceeied with, as tha ameud meats on the supplementary Order Papers practically constituted it a new bill. To put himself i.i order he moved that the Chp-isman leave the chair, and went on to iay that the Premier's proposed a&ieudmeuts iv reference to tha directorate practically placed the control of thfi bank in the hands ot six gentlemen, four of whom would be in tfi^ct appointed by Ministers. Tbe one to be elected by the House and the ono by the Council would, as Parliament was new carried on. benominoes of the Premier. Bve-n if Ib.lt « c o in t so, ths fact that; the directorate was s" la $;■ i; constituted by Parliament made the in-f-tinjtio.j a pmely State biuk. The bill, therefore, was not tie bill originally introduced, aud under the circumstances ho was justified in movirg thatthe Ch<urman leave the chair.

The Hon. J. G. WARD referred to a leaderette in that night's Po<>t ascribing to hiio, he said, the character of an intriguor. He defied snyoce to say he had ever intrigued wiih persons on either side of the House. A^ to his ri -Entering the Cabinet, he had never asked either tbe Premier or Minister for Landn an} Ithing in that connection. There was a veiled threat in tbe article as to his biiug afraid of disclosures in connection with the banking legislation ; but he was afraid of nothing, and wou'd act with the utmost independence and openings iv connection with the bill. The PRISKIBII said it was a ca«e of clear dicks &nd prepare for actiou. The lesdar of the Opposition was evidently detsimiued there should be no banVing If gislation. Captain RUSSELL explained that lh-\t was not the case. It the Premier broughk down a Banking Bill in proper form he wouW give it every opportunity to bee me law, but he did not confides it right to proceed iv the way proposed. The PREMIER said that he waa sorry Mr Ward took the trouble to reter lo tha Post's spiteful and iuacourate article, which was simply a specimen of whit was too cften raid and written without foundation by persons who thought that they cot^ld by such means ir-judKff tha Miii'try with the Liberal pirty. All such nutters as tho constitution aud conduct of the Government would ba settled honourably witluut ary regard to what might te said or suspected by Opposition jnirnalists or others. As to the bill before the Committee, Captain Ru-sell 'a objection had no force, as tho proposed amendments were oaly such as we:e needed to bsing lha ment of the bank into line with vchat wm desired by the country and lequired iv the interests of the public. He proposed to have theb >arrj changed, a* it was contrary to all practical principles to have a president on the board with power to v«to all that other members might propose in the bank's interest. The que&ticn was whether the Bank of New Zealand was going to govern it, or was Parliament to see that the bank was controlled iv a manner in keeping with the colony's interest, in it ? The MINISTER FOR LANDS siid Mr Ward should not have attached so much importance to what appeared in til's l\.st concerning his so-called rations; with Mitiist-.re aud the banking legislation. It was attaching an im-jm-tsnee to the article which it did not possess. There was, at any rate, not one word of truth in what the article said as to Mr Ward's trying to re-enter the Ministry th-ough his (Mr M'Keuzio's) influence; nor in wh*t was siid as to the relations between the Premier and the Minister for Lands. Mr Ward bad never said one word to him on the suV.ject. As to the bill, it was needed as a matter of public policy, and that was its all-sufficing justification. Mr G. HUTCHISON endorsed Ciptain Russell's viow in regard to the Bunking Bill, and in referring to the position of tho whole question of the banking business ho directed special attention to the statement recently made by Mr Watson, president, as follows :—: — " When I was before tha parliamentary committee in 1893 my mc..uth wa3 scaled regard ing the transactions in certain accounts with the Bank 'of Now Z- aland and tha Colonial Bank. Gncutr.stances h&ve tr&cspired wbich makes ib no longer necessary to observe roticenci r«-gord-iug the accounts referred to above." The whole position was such that Captain Russell's proposal was obviously the right course to take in orel,pr to Eeouro proper consideration for the whole question. Mr DUTHIE deprecated Mr Ward's action in magnifying the importance cf his personal position in referer.ee to tbe subject. As to ths bill before the House and the amendments proposed by the Premier, tho issues were so large and complex that the delay counselled by Captaiu Kustell was absolutely necessary in the interest of the country in view of its great cUke iv the bank.

Mr SCOBIE MACKENZIE said no one in the House suspected Mr Watd of intriguing for re-entrance to the Cabinet, or Ministers of antagonism or disloyality to each other. He pointed to the inconsistency between the Premier's present proposals and his pas'; statements in reference to the bank, and argued that Captain Russell's proposal would give the opportunity which was essential to fuilher consideration of all the varied aspects s*r.d bearings of the case. A new and properly coordinated measure waa what was called for at tha hands of the Government, and not the present bill with all its complicating new clauses.

Mr HOGG said members on his side of the House were determined that the bill should be pushed through the Housa. The Hon. Mr ROLLESTON suggested that in order that legislation should proceed in proper form the Premier should bring iv the bill as a now measure, have it read a second time pro forma, and then referred to a committee, in order that tho president ot the. bank might have aD opportunity of throwing all the light he was now in A position to throw on the affairs of the bank.

Mr WARD said that if it wag sought by the means suggested to further pursue him in a noundish and fiendish manner, he would on his part gee that the same measure and more was

meted out to those who were bent npon so purouing him. Tbe MINISTER FOR LANDS said in regard to the statements referring to hu attitude towards the officers of the bank that that attitude, as it actually exitited, waa dua to the Uct that the bank's officer had misled and deceived tho Government with t&lse statements concerning the bank's affairs. The legislation vow proposed wan intended to place the management of tho bank on a footing which would make a repetition of past abuses impossible. Captain RUSSELL again urged the Premier to bring in a new bili. The PREMIER eaid he was sincere in getting the banking legislation passed, aud he saw no reason for elelayiug the bill. Four cut of the six directors of the bank 6hould be nominated by the Government in view of the large amount of interest which the colony had in the hank, and that was now proposed to be done l>y the I ill before the Hou-e. The proposal to abolish tho presidentship waa & matter if policy to give expression to a cons*nsu3 ol opinion that the retention of tho ofli:e ceased to bain keeping with the kind of maiiHgfm.-nt wbioh was believed to be necessary for th s well-being of the bmk and to tho colony's interest in tho institution. To pestponetho measure and then refer it to a committee would entail at least a month's delay, aud pc6&ibly lead to not being pas3cd thia secsion. If the president desired an inquiry he could obtain ib at once by petition to the House.

Mr FRA?BR said that to give the Government preponderance of power as proposed would make the bank a State institution and place: it under political control, which would be ruiuou3 to its busiuess.

Tbe MINISTER FOX LANDS explained that all he bad said io reference to the p.sitioD of th' 3 bank was that its present mansgeweut was unsatisfactory, aisd that it it were continued ihe aifairs of tho institution would probably get into a bad way. He Lad alaoia ; d thatthe officers of the bank who had dec-ived the Government bhou'd not continue in ofnc?, and also thai, the offincrß of the bank should not be permit Led lo indulge iv the old bad practice of meddling with politics, and that if they did they wou'd h&vd tj be thrown out.

Mr BUCHANAN held that the Government, as a Ooverntaeiit, apart from the House, should be responsible for the proposed appointment ; but at the same time hoped tha country would rid itself of its connpetion with the bank at the earliest possible moment. Mr DUTIIUS disagreed with the idea that the abolition of the presidentship and the appoiatmeut of a chairnmi of directors at ft thousand a year wou'd letd to greatly improved management, and said the Government aad not Parliament should be saddled with tha responsibility ot selecting blie directors. He criticised the bulk's bilince. sheet, which seeintd to him to have Leen contrived to conceal a loss.

Mr J. W. THOMSON said that if he had betn in tha House at the time of "the first bankii g legislation he would hive had nothing at all to do with the Biok of New Zealand, and b-lieved in leaving it still severely alone- instead of exercising more political control over it. Mr TAYLOR said that tufficicut h">d been said in the House that night to show that an inquiry into the aifiirs ol thcba'jk was m gently called for, as it had bsen stated that the bank had ru<vde enormous concessions to members of tha House as a result of the lFgT>Htsori of 1884. ' - The PREMIER said the whole object in view was to plaeo the coutrol ot the bank on a more satisfactory footing, such as might do atxay vcithtbe necessity for continually bringing the management under political consideration on the fl >or of fehe Hou3e. The House was still sitting at 2 a.m.

July 23. After the telegraph office closed ab 2 a m , in the course oi tbe discussion ou the Bvnking Bill, the e'reumotancas in connection wi'h the legisMion with reft re-nco to the B*nk of Now Zealand and Colonial Bnnk were recalled in detail, aud Mr DUTHIE said Minisleis should be ashamed of how they hid acted in the matter. The PREMIER denied that there was any reason to be a*hamed. and statpd that Mr Dalhie had all aloug e-xhibiteel inveterate nntipathy to the Buik ot New Zealand, and would inve'ltktd to see it go down. He had spoken of it as be'ng insolvent, aud waa suspectr-d of boing, and having been, the mcuihpiece of another bank.

Mr IjUI'HIE categorically denied the statements that he had been tha mouthpiece of any bank, aud th*t he had spoken of the B*nk of New Z •'aland as insolvent. The PREMIER withdrew the statement. At 2 30 Captain Russell's motion that the Chairman leave the chair was negttived by 33 to 19. Mr CARSON then moved to report progress. Negatived by 28 to 26. Oa the atnendnriii 1 ; moved Wst session that four instead of fiva directors be appointed by the Governor-h'.-C uucil, The PREMIER explained that if "four" was rcjeoti d he would then propose that two directors be appoiuted, the Government's intention in that cate being that one be ejected by tha House, one by the Council, aud two by the shareholders. There would ba no president, but a chairman with a casting vote. The proposal that "four be inserted was carried by 33 to 21. Mr SMITH proposed that instead of b-ing appoiutcd by the Governoi-in-Council the directors be tlec'ed by ballot by the House ntid Cuuncil sitting together.— Negatived by 39 to 14. The proposal that two directors bj elected by the shareholders was agreed to. Mr SMITH proposed tb*t two directors be allowed to engage in active coromsrcial privato business.— Negatived by 41 to 9. Clause 3, as to tbe eligibility of the present directors, and clause 4, aa to directors appointed by the Governor, were carried with amendments. Progress was reported, and the House rose ab 5 45 a.m.