The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, 30th OCTOBER, 1889.

Southland Times, Issue 11295, 30 October 1889, Page 2

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, 30th OCTOBER, 1889.

Next to what would touch the credit of the colony itself is -my thing affecting the reputation of the Bank of New Zealand; and it is painful to find this great institution once more on its trial before the public. We approach the subject in no alarmist spirit, for after having heard what the bitterest enemies of the Bank had to say, we are satisfied that there is nothing in the situation really fitted to alarm. It would be foolish, at the bidding of what seems to be mere spite and personal disappointment, to set aside the results of the deliberiite investigation made a year ago by competent inquirers into the position of the Bank. Tberß may have been errors made in that investigation—very likely there were — but that in substance the report of the committee, which rehabilitated the Bank in public estimation and credit was false or untrustworthy is what it would take much stronger'evidence thf>n has yet been forthcoming to make us believe. That the view of the chief accuser is pessimistic we may quite safely assume. And what, after all, does his indictment amount to ? This — that to write off from two accounts such a sum as would make the estimate of their value a safe one would be to reduce the assets of the Bank by L 300,000. Kow, in the first place, in the rapidly improving circumstances of the colony, these assets are reasonably assumed to be mending from day to day, and at the very worst, a little nursing- may be confidently expected to reduce materially the deficit that is put at the very highest figure that a determination to depreciate the Bank of New Zealand has found it possible to run up. But if we admit that in the investigation of the Bank's affairs that took place last year, a desire, conscious or unconscious, to make the best of things may have led to the overestimate of the value of some securities, it is surely similarly fair to acknowledge that a maligaant, personal animosity is likely to have erred at least to an equal extent on the opposite side. An appraisement therefore, on this principle, would reduce materially the extreme amount that is said to be wanting to restore] equilibrium, without glancing at all at any prospect of amendment. But we desire to point oat that, in the second place, there is an ,which has never been 1 taken into accouat in an estimate of the assets of the Bank of New Zealand, but which nevertheless is undeniably of very high value. The good will of such a business as the Bank commands is not easily computed, but competent judges have put it down at sums varying from L 300,000 to half a million. With such an offset, therefore, to any deficiency that an impartial investigation might disclose, it is safe to say that the charge of short coming that has caused all the excitement may be regarded with little dread. What steps should be taken to reassure the shareholders, the colony, and even the creditors of the colony it is not for us to say ; but it seems as if, with the new blood that has been infused into the English directorate, there would be found within the Bank itself, a council perfectly compfitent and trustworthy, and one whose conclusions would be frankly accepted by the public. But if an independent inquiry be demanded, there can be no good reason w! yit should not be undertaken. One thing is certain, that whatever is to be done should be done at once, and the tension relieved in the mind of every one concerned In regard to the conduct of the two men, both of them quondam directors and one of them a recent President of the Board, who have caused all this disturbance, it is impossible to speak in terms of too strong reprobation. Having in view the position occupied by Mr Buckley only six months ago, when, as Chairman of Directors, he put his imprimatur on the soundness of the Bank's position and sanctioned the estimates that he now condemns, his statements and attitudes at the late meeting can only be characterised as monstrous and disgraceful. He appeared before the shareholders not ashamed to admit that he had parted with nearly all his interest in the Bank, a course that must have been dictated by the belief thai bis own declarations were autous aatf mistadiugt

[ Farther, without any motive that was not base, malicious and destructive, he set himself to paint in the blackest colours the position of the Bank, and depreciate the property which for a , valuable consideration lie had just placed in other hands. Mr Buckley occupies at this moment perhaps the most unenviable position that it is possible for Any man to fill in the public eye, and has reaped the reward of unanimous and emphatic condemnation. It is simply impossible' to kecept his plea "that he spoke at one time in ignorance, and that he speaks now under the influence of fresh light and new revelations. Occur pying the position that he did in the Bank it is incredible that in regard to any one of the great accounts that influence the situation, he could have been kept in the dark. But supposing that he had ,been so blinded, there remains the damning fact that while others were trusting to his statements to guide them in their investments, he was taking advantage of his knowledge of the falseness of these statements to pass his property into other handsproperty that the slightest sense of honour would have made him stick to to the last. Mr McLean, his co-director and relative, was not so blatant or offensive in his demonstrations, bub he is liable to the same charge of having sold out his heavy interest in the Bank under the promptings of distrust inspired by his official cognisance of the Bank's affairs, and of "having continued a director while denuded of his qualification and while his position was altogether false and untenable. The worst effect of exhibitions like these is that they tend to destroy confidence in our public men — men whose position and repute should be a guarantee that they are the safe guides and custodians of all commercial interests that maty be confided to their bands, and whose mere presence at a Board should be accepted as a warrant of soundness and straightfor wardness of administration.