Untitled

Pahiatua Herald, Volume II, Issue 216, 17 October 1894, Page 2

Mitch depends upon what the pro- I posed Banking Bills of the Colonial 1 Trtasurpr contain, in estimating the probable duration of the session. A report has been circulated that th. proposed hank legislation is to Ik embodied in two hills, one dealing with the Bank of New Z aland Estates Company, and the other to empower tin Bank of New Zealand . ■ purchase th" business of some otln r banks. If this bt true it amounts to giving effect to the now famous scheme of amalgamation formulated by the Hon. George McLean and Mr •John Murray, and it will be interesting to watch the process by which tin Colonial Treasurer succeeds in getting on the blind side of honorable members. There is a g lod deal of nonsense talked about severing tile Estate' Company from the Bnult of New Zealand, blit can it be done even by act of the New Zealand Parliament? There are the debenture holders to be considered ; will they consent *o hav. their position altered? As they now stand the interest on the debenture - is guaranteed by the Bank of New Zealand, and tin y hav- a prior lien on the Estates; furthermore the debentures are redeemable at 8 per oent. premium. To tamper with the Estates Company terms must neccs sarily he arranged with the debenture holders, and that implies that a concession must be made to them for disturbing tin contract existing between them and the Bank of New Zealand. What form that concession will take is easy to guess at ; the unfortunate taxpayers of the colony will bo asked to guarantee the debentures of the Estates Company. Would it be right, fair or just for the colony to undertake this charge. We unhesi tatingly say it would not. As it is we have gone far enough with the Bank of New Zealand in finding i; £2,000,000 of capital. Let us stop at that, and not, to use a hackneyed expression, throw good money after bad. Tun second Bunk Bill, which is to emI'iuv: r tho Bank of Now Zealand to buy out another bank, is not needed. As we have on a former occasion remark' d. it is additional capital and not increased Imsini ■ - that tic Bank stand: in need of. We are inclined to think there is some I ruth in the report that this power of purchase for the Bank of New Zealand is intended for the share market, which rises and falls with rapidity at the least change, and is tin lore ail excellent index, points to this as being the probability. When the original amalgamation scheme was given out, the shares of the Colonial Bank ascended the ladder rapidly, running u]i from about Ifis to SUL. Day by day. as the scheme was pulled to pieces till it was rejected, the shares n eeded in value, getting back to about 17s tin ; ■ hey ari on ilc rise a jain, and stand ■ low al MiiiiH.hingout "I. The Bank of New Zealand shares receive no notice, except from ill-informed investors, because it is apparent that the benefits to bo di rived from amal ji lion or purchase are \\ hotly against the interests of tho Bank of New Zealand. I f the Colonial Bank dm- - not sneered in securing some decided h gisla I: vc b im (it Indore the so ision clo wo venture to say tho shareholders of that institution will be callt d upon to pro\ ide fresh capital to tile ext ml of about £2 p-r share. The likelih mil of this call hn i been ta A- In i ,

Hum latest opinion respecting ourselves s very amuamg. The Grocers’ Gazette declares that the Colonials are loing their best to strangle the Home lairy farmers, and states that it is surprising such is permitted. The Gazette ;an have but a very limited knowloge :>f the colonials if it levels this charge at them. There is no desire on the part of our dairy farmers to strangle the Home industry, but unfortunately iihe Australasian colonies carry a pon derous weight of public debt exceeding , C 200,000000 and a private indebtedness j >f considerably more, and the interest on 1 this vast sum must come out of the produce of our lands. We have no manufacturing industries that have ; reached the exporting stage, so that all our wealth is derived from the soil. Interests on onr debts must be paid whether the price of our productions is high or low, and if the money is not paid on due date the odious term of repudiation would be applied to our actions. Added to this, land is dear, and between low prices of produce and dear land colonial farmers sweat to j pay the interest on the international and private indebtedness of the j colonies. The colonial farmer has no | desire to strangle anybody or anything. ! and if the Grocers* Gazette can suggest a way by which the interest on our indebtedness can be paid without utilising our productions for the purposes we are sure it would be welcome.