The Pahiatua Herald.. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, SEPTEMBER 19, 1894. THAT AMALGAMATION SCHEME.

Pahiatua Herald, Volume II, Issue 204, 19 September 1894, Page 2

The Pahiatua Herald.. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, SEPTEMBER 19, 1894. THAT AMALGAMATION SCHEME.

Tfirrk is no more important subject before the people of the Colony at the present moment than the subject of the proposed amalgamation of the Bank of Now Zealand and Colonial Bank. We, in our last issue, condemned as well as wo could, the scheme, and after a further and closer examination of the proposals, we are satisfied that the Colony will pay dearly for its pains if the matter receives Parliamentary sanction. The security or “ cover ” as the Colonial Treasurer prefers to call it for the I“2,()()(),000 guaranteed by the State will not be increased or strengthened by the proposed amalgamation ; on the contrary, some excellent and necessary safeguards embodied in the Bank of Now Zealand Share Guarantee Act will have to bo. swept away. In this Act there is a clause enabling the Colon : al Treasurer to enforoe a oall on tlf shareholders of the Bank of New Zealand to the extent of L'5()0,0()() and this will have to go, under this bastard scheme. The Colony will he in no both )• position, the shareholders of the bank of New Zealand will not be re leased, from a single obligation, hut the fortunate Colonial Bank shareholders will feed on the fatted calf. What has the Colony done that a parcel of capacious bank shareholders should be quartered on it. What is the motif? What ia the reason ? Is • e honorable * < g.ud for the safety and welfare of the State that has brought tbi.; bank into the Parliamentary arena? It is impossible to believe it so, for the exceptionally valuable consideration to hi given the Colonial Bank shareholders, as against the other interests involved, is too patent to admit of any other conclusion, than that the interests of private citizens take precedence of the public in terest. Is this amalgamation redeeming the promise ;■ figged to have been given to tho Colonial Bank by the Colonial Treasurer, when the Bank of New Zealand Share Guarantee Act was passing through Parliament?

Dilating on the banking situation th< Evening Press says “ that the first-1 step that the House should take should be to appoint a committee to enquire into the position relatively to either bank of any gentleman who might desire to take part in the debate, and more especially of any who may be in a position materially to influence the decision of the Legislature.” The Hon. Geo. McLean, the Hon. Richard Oliver, the Hon. W. D. Stewart, the Hon. W. IT. Reynolds and the Hon. W. J. M. Larnach, directors of the Colonial Bank make a powerful body of legislators to champion the cause of the Colonial Bank, and they are not the class of men to be troubled with any delicacy of feeling in a matter of this kind, for they are quite competent to keep “ steadily in view ” the public interests.

This next move in the banking world will be to stop the foreign banks, viz., the Bank of New South Wales, the Union Bank of Australasia, and the Bank of Australia from doing business in the colony. These are powerful institutions engaging in legitimate banking, and have come out of the recent financial crisis in Australia unscathed. By sheer good management they have established themselves in the confidence of the people of Australasia, and their presence in this colony cuts and will cut deeper into the profits and business of the State Bank. In due oourse a benevolent and largehearted Legislature will be asked to put a stop to this, and a democratic government, which is but a series of oscillations, will oscillate in this direction, if not willingly then unwillingly, for the wires will be pulled in that direction. It is hard to say it, and we grieve to have to say it, but nevertheless it is true, that the Seddon administration is running this country into ruin at a painfully rapid pace.

The suggestion made by Mr 11. Wilson, headmaster of the Mangatainoka public school, that the scholars attending the school he given an opportunity of a day’s visit to the seaside, is undoubtedly a good one. There are admittedly a few difficulties ill the way, but none of so serious a nature as to be altogether insuperable, in combination with the pupils attending the Pahiatua school, a day, say about the end of October, could he fixed upon for the excursion, and arrangements made to reduce the cost of transit to a minimum. Many of tho children attending the schools have been born and brought up iu the Forty Mile Bush, and to them the sea is but a more name. The happily-con-ceived idea of giving them a trip to tho seaside, if carried out, will be of infinitely greater service to them than all the reading they indulge in on the subject. We believe the coach proprietors and Railway Commissioners would strain a point to facilitate the carrying out of the idea, am- the other details would be comparatively easily worked out. At all events the suggestions is worthy of very earnest consideration.