THE BANKING COMMITTEE.

Temuka Leader, Issue 3022, 10 September 1896, Page 4

THE BANKING COMMITTEE.

WtfLMMITOV, Sept. 8. The Banking < 'otnmittea resumed at 11 o'clock this morning. The ro-exannuo.tion of Mr Watson by Mr Hutchison was resumed. Tho witness declined to state wlit proceedings he lvfriirod to when ho said that if a certain oiler had been accepted it would have been better for tho shareholders of the Colonial Bank. He was asked soverul questions relating to certain remarks made by Mr Justice Williams iu his decision in the Ward Association case, but decliued to answer, on the plea that if he did so he would be disclosing private business. The witness said he concurred wi:h the statement made by the Hon. G. McLean at the meeting of Colonial Bauk shareholders, held iu January, 1896, to the effect that it was better not to disclaso the real position of the bank, but to allow it to be purchased by another v>ank,when the shareholders, instead of having to pay a call, would receive something from the purchasing bank. His reason for so concurring was that if the call had been made the value of the shares would have fallen to less than the value of tho call. Witness declined to auswer Beveral questions relating to Government remittances given to the Colonial Bauk. The Auckland Agricultural Compauy had not taken over any properties of the Bank of New Zealand that he know of. It probably relieved the bank of some nccounts.

Re-examination by Mr Maßlin, the witness stated that the references to the balance-sheets of the companies had been permitted by the chairman. The witness did not think that the fact that Mr Murray, manager of the Auckland branch of the Bank of New Zealand, held office under the Anglo-Continental syndicate was likely to do the bank any harm. In reply to the Minister of Lands he declined to say if there had been any advances made on a property at Wanganui known as " Rogue's Castle." To the Premier : He had no knowledge of Messrs Horton and Johnston going to England in 1893, but would ascertain what particulars of the bank's business they took with them. The Committee adjourned till to-mor-row.

Sept. 9. The Banking Committee resumed at 11 o'clock this morning.

Ou the motion of tho Premier it was decided that only motions summoning witnesses should be taken except when the committee unanimously consented to order the motion being discussed.

By six votes to two the committee negatived Mr Hutchison's motion to apply to the Bouse for permission for the committee to Bit during the sitting of the House.

Mr Watson handed in several statements that he had been requested to procure, and stated that the Banking and Bankers' Act, 1893, was passed at the request of the Bank of New Zealand. Messrs Johnston and Horton did not go Home in 1893 to float shares under that Act. Those gentlemen had visited England in 1888.

In reply to a request from the Pres 3 representatives to copy information in the statement Bhowing the total writings off in connection with the bank, the chairman intinaated that the statements were only for the use of the members of the committee.

This concluded Mr Watson's examina tiou.

J. G. McCarthy, a director of the Bank of New Zealand, was examined by the fremier. Ho stated that he was appointed a director in 1894. The Bank would have been unable to carry on if the State had not assisted it for the second time in 1895, as the Estates Company was absorbing large amounts of the bank's capital. He had inquired into the Australian accounts and found that some of the properties were overvalued. Accountß at present in operatiou iu Australia were carried on on strict lines. It was intended to limit but not close altogether the Australian business. The Bank's Australian business was subjected to inspection every six months. He thought that it would be better if Mr Butt, the auditor, had au assistant. Some of the bank's trading concerns in Australia had been disposed of since witness took office, and the sale of others was now under negotiation. The bank was doiug a discount business in Australia at lower rates than in this colony, as the rates in Australia were luwer than those iu New Zealand. Only the beat discount business was taken, and he considered the bank's Australian discount business was of a satisfactory uatuae. No auditor or inspector had beea sent to Fiji since lie took office. He had no recollection of any writiugs-off in Fiji, and kuewof none required at present. The Bank of New Zealand waß now, in his opinion, iu a position to do the largest proportion of the colony's banking business. Asked if he considered the position of the bank satisfactory, the witness said that he thought so, though there might i be further losses in the bank, as directort could not get at the bottom of everything all at once. If the colony continued as prosperous as at present, he thought that the bank would be able to meet its liabilities iu connection with the assistance roudered it by the State. The witness was examined at some length respecting the purchase of the Colonial Bank by the Bank of New Zealaud and practically corroborated Mr Watson's evidence in this connection.

The Committee adjourned till to' morrow.