COMMERCIAL BANK BILL.

Poverty Bay Herald, Volume XL, Issue 13171, 3 September 1913, Page 6

COMMERCIAL BANK BILL.

GOLD AND BANK NOTES

(Per Press Association. J

WELLINGTCiN, this day. On the motion to consider the Committee's report on the Commercial Bank of Australasia, Ltd., Bill, Mr Ell raised

the question Avhether provision was made for the payment of gold for bank notes m any other centre than Wellington. He pointed out the unfairness of such a position if it obtained. Other banks, he said, paid gold on demand at the four centres.

Mr Alien said provision was made m the Bill for payment of notes at the office of issue or Wellingtdn. The provisions .of the. Bill safeguarded the interests of the people of the country. Sir Joseph Ward said that every bank operating m New Zealand made their notes payable m Wellington. They were always .honored, however,, wherever presented,. The centralisation of bullion was deliberately done to prevent any institution running out of gold at limo of a crisis, which happily, .he added, was not possible m this country-. (Mr Malcolm informed the House that the Committee- which examined the Bill took every precaution to carefully consider its provisions.

Mr Hindmarsh advocated th-3 adoption of the Canadian banking system here. There each ' bank -was compelled to keep on hand a certain amount of gold. All bullion held 1 agaitist tlie bank's notes was handed over to ths State, which gave a receipt for it. The -State thereby got the use of the gold for nothing. Mr Millar advocated the talung over by the State of the whole nots issue and lontrol of gold. Banks should be com pelled to buy gold from the State instead of from private people. Mr Wil ford' said he had prepared a clause, providing for practically freetrade m banking as long ap the institutions' assets reserves were sufficient.

Mr Massey agreed with Mr Wilford's sentiments re freetrade, but said he knew of no restrictions to prevent any bank coming to Parliament and getting authority to operate here. Mr Myers said that any corporation was entitled to trade m this Dominion under the Companies' Act* At the end of. last June quarter the Commercial BankJ had a note circulation of £1,714,---159, and the bullion, coin, etc., totalled £5,016,557.

The Bill was then read a first time