BANKING INQUIRY.

Poverty Bay Herald, Volume XXIII, Issue 7665, 27 June 1896, Page 2

BANKING INQUIRY.

■ MOTION TO SET UP A SELECT COMMITTEE. LIVELY DEBATE IN THE HOUSE. [Fkom opb Parliamentary Reporter.] Wellington, to-day. Banking matters occupied chfi attention of die House for some hours last night, when "■ the Hon. Mr SecMon moved that a Selecb Committee of ten members be appointed_ to inquire and report upon the following matters :— (1) The position of the Bank of New Zealand, Bank of New Zealand Estates Co. (Ltd. ), Auckland Agricultural Co. (Ltd), and Colonial Bank of New Zealand, both prior and subsequent to the banking legislation of 1893, 1894, and 1895, with special reference to all circumstances leading up to that legislation, the fullness and accuracy of the information then disclosed by the directors, officers, and persona attached to those institutions, and the capacity. and fitneßß of those persons, directors, and officers ; (2) to . ascertain what amounts have been written off, and what led to the same, and to deal with all such other matters as the committee deems necessary or expedient in the premises, provided that the committee shall not be empowered to inquire into the ordinary business of persons or companies doing ness with the Bank of New Zealand, excepting in so far as to the writing off, and wfcib led to the same, the committee to have power to call for persons and papers, and to confer with any similar committee appointed by the Legislative Council, the committee to consist of the Hon. J. McKenzie, Captain Russell, Messrs Buchanan, Lang, Graham, Montgomery, McGowan, Uollius, Houston, Russell, and the mover, and to report within - 21 days. He dealt with the banking legislation of the present Parliament, and said that it was the general wish throughout the colony that such an investigation aa that suggested should take place. He would not be doing his duty to the colony or to the people of the colony did he not ask the House to deal with the matter. It would l>a said that a Royal Commission ought to ' J«i>l with the question, but his answer was that it should be disposed of by Parliament, which was the highest court in the land. When the banking legislation was first introduced in 1893 the Government was told . that if the Guarantee Act were nob passed the Bank of New Zealand would have to close its doors. Mr Riccarton Russell : Who initiated the negotiations ? The Premier : The Bank of New Zealand. The first intimation came from Mr Murray to the Colonial Treasurer and myself. The - Bmk is now safe, and cannot be jeopardised by the fullest enquiry. Mr Geo. Hutchison : Is it as bad as that ! (Laughter.) Captain Russell contended that the motion was too wide, as it allowed a partizan committee to review the affairs of their opponents for years past. The Committee, which ' consisted of seven Government, two Opposition, and one Independent member, was ' avowedly for the purpose of raking up the antecedents of those on the Conservative side of the House, and the private accounts of men who had died long ago were to be enquired into. The Committee would be injurious to the Bank, as it would be impoa- ■ sible to disconnect Ministers from having a knowledge of private accounts of the people ' doing business with the Bank. The Minister of Lands claimed that the Government had nothing to conceal, and aa the fullest enquiry was wanted he advised the Premier to agree to Mr Geo. Hutchison's proposal to have the enquiry open to the press. It had taken the Government two ■ years to find out the position of some estates . connected with the Bank, and the enquiry showed that they had paid £205,000 more • for the Estates Company than was expected. ■ If the Bank would not stand the test the Government proposed, it was time the institution went into liquidation. Mr Buchanan was convinced that this Committee would never have been asked for was it not for the decision given in Dunedin - recently. Sir Robert Stout ridiculed the propoeed enquiry into the conduct of dead men who could not possibly defend themselves. The enquiry asked for, he alleged, would ruin the Bank, and if the Government wanted to wreck the Bank, the Premier's motion was the very thing to do it. Ministers should not be on a Committee thus sitting in judgment on their own conduct. '" • • Mr Montgomery, while supporting a Parliamentary Committee as a proper tribunal, said there should only be one Minister on. it, and care should be taken that private names and private accounts were not disclosed except where absolutely necessary. Mr Duthie, in a telling speech, declared „ that the Committee was only wanted for political purposes by Ministers, who wished to stir up mud previous to going before the country. He asserted that Mr Seddon had. deceived Parliament over banking mattersj and in consequence the Premier was on his trial. Mr Hall-Jones followed, and contributed little information to the House, but gamed 1 applause from Ministerial claquers by saying that Government wanted a most complete investigation. Dr Newman, who had been more than ■ once alluded to by the last speaker, sprung up immediately the Minister closed his remarks, and contrasted his present utter- - ances with those of the fearless member for Timaru who spoke his mind a year ago. The Opposition wanted the whole thing ripped • up and hot .made a farce of, and wanted to know why Mr Watson was taken from a junior position in the Colonial Bank and given an important post in the Bank of New - Zealand with a large salary. At lO.iiO Mr G. VV. Russell moved hia amendment and went into the history of the banking legislation, oharging Ministera with the whole responsibility, and denying that there was any desire on his part to burke enquiry. Mr Ward, he declared, had been simply fed by Colonial Bank officers with money to an unlimited extent without)security, knowing that he was a powerful political leader that they intended to uae for the purpose of accomplishing their own ends. He had voted for the banking legislation' ■ simply on the advice of the Government at) ' the time, advice whioh was wrong, whioh he , ■. believed was wioked, and which ill was attempted to justify by setting up a partial ■ Committee of the House. Mr Collins, one of the Committee mentioned in the Premier's motion, seconded the amendment in a powerful speeoh. He - said it was absolutely wrong to have appointed to the Presidentship of the Bank - oue who for years had largely participated in the concoction of false and fraudulent balance-sheets. He should refuse to serve on a committee to rake up dead men's bones. ; The Government would never have done. ' their duty till they had Messrs Watson, • Mackenzie, and Vigors impeached. ' . ' j The Premier, speaking to the amendment, ■ argued that more than one me.mber of the -. ■ Government should be permitted to remain ' on the Committee, as his duties as Treasurer '. might rcudor his absence frequently neoes- '-. sary. The directors of the Bank of Nelw .. Zealand were equally on trial with the officers of the Colonial Bank. " . Mr Geo. Hutchison, speaking after midnight, hoped that the Committee would bo restricted to the Lower House, which had . • to deal with the finances of the colony. He could not disguise the fact that the enquiry would do the Bank harm. The Minister of Lands denied that he had * - admitted that the Government were on trial, : So far as he was concerned he had no wish--' to be on the committee, but said he could be of some use there, and could bring out Borne facts which would be debarred if 1 ?' he was excluded from acting. The colony T demanded a full inquiry, and full scope, must be given. Mr Robert Thompson said he regarded the\ , '. purchase of the Colonial Bank as a job. The bank directors had loaded their properties, - issued bogus balance-sheets, and deceived ; ' the House, and nothing short of criminal prosecution would satisfy the country. Major Steward thought that not only the last balance-sheet but many previously put ■ forward by the Colonial Bank were entirely ... ~ misleading and false. " < ' ""] Mr Tanner urged that the purohaoe of the Colonial Bank had been a premeditated and foregone couclusiou. ' ", J Mr Mitchelsou said that Mb name having been mentioned in connection with the Bank <>f New Zealand, he did not intend to oppose the motion, because he wished to see the fullest investigation into the Bank's dealings. He had nothing to fear so far as his own. ' private affairs were concerned, and he had, nothing to be ashamed, of.

lUJJv-Mr;' Saundera '. suggested that the ten &£ "'imembera of the Committee be elected on the Hare system. .: . . ff'V.Afc.one o'clock Mr W.Kelly moved the i<~\ adjournment of the debate, and objection ■V^ being raised, - the . Premier said that five ■;'}. "-ijaembsrs had intimated that they wished to £; .Speak;--, :-*;-,. •- The motion for adjournment was carried gX by 32 to 28.