The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. MONDAY, JULY 23, 1894. THE BANK OF NEW ZEALAND.

Pahiatua Herald, Volume II, Issue 178, 23 July 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. MONDAY, JULY 23, 1894. THE BANK OF NEW ZEALAND.

This institution was again before Parliament on Tuesday and Wednesday. Ih* deference to the wishes of the London moneydender, negotiable stock Certificates are substituted for preference shares. This is a very slight amendment to the Share Guarantee Act, but it makes all the difference between discount and premium. Had. the Government adhered to preference, suoh is the objection to this class of investments, or rather investments in this form,.n,ecessitating:fehe maximum of .trouble when transferring, that the shares would not have sold for £lO each ; by the amending Act £IOO certificates or multiples thereof will be issued, and as these are transferable somewhat in tho mannor of banknotes the investor will give a premium, or in other words to secure each £IOO certificates the London investor, owing to the easy manner in which the stock can be dealt with, is prepared to givo say £lO2. How will the Bank issue this stock ? Will it be in the usual hole and corner fashion, or will it be above the board ? It is alleged that one firm has already underwritten the amount at a premium of 1A por cent ; to put it plainly thia firm has guaranteed to find the Bank the whole £2,000,000, trusting to make a profit on the sale of the stock to the general publio. The Government guarantee is the main feature in this matter, and as the 34 per oonb stocks of the colony are at a premium it is reasonable to suppose that a guaranteed 4 per cent though with a limited currency will sell in the open market at I 2 per cent, or probably a little more. 1 This per cent less oharges would represent brokers’ profits ; the charges, however, will eat into the profit very considerably, the stamp duty alone being per cent. Even then the profit would be £20,000, but tho point is no matter what the profit, the amount should go into the coffers of the hank and not into the jaws of the financial ■harks with which London is infested. There is not the shadow of doubt that the issue will he successfully floated, and as thoro is no violent hurry for the money, the Bank of New- Zealand could very well have undertaken the flotation itself and retained the profits, instead of presenting the underwriters with £IO,OOO. It is not a creditable beginning for the state guaranteed bank.