THE BANK DEPOSIT.

Taranaki Herald, Volume XXXI, Issue 4319, 18 April 1883, Page 2

THE BANK DEPOSIT.

The Chairman read a letter received from Mr. Buller, Manager of the Bank of New Zealand at New Plymouth, as follows: — " With regard to the deposit which has matured at the National Bank, I am directed to inform you that the Bank left this question with the Board, and is perfectly content to accept any decision they come to." Mr. Rdndle: Very good. After a pause of a few minutes, during which the members consulted in whispers, Tho Chairman said : Will some gentleman move in this question ? Mr. Yorke : I think it is hardly necessary ; a resolution was passed at the last meeting dealing with it. Mr. Davidson : I move " That the Treasurer be authorised to deposit with the National Bank £15,000, and that the remainder be placed to the current account in the Bank of New Zealand." If we do not deposit the money with the National Bank it will be a matter of losing interest. The Chairman said that the interest would be considerable — about £60 — and that was a matter of impo "tance. Mr. Davideon (to Mr. Newman) : Will you second that ? Mr. Newman : No. I will not second it. Mr. Baylt : I will' second it. Mr. Yorke said the Board at the last meeting empowered Mr. Shuttleworth and himself to wait on the Banks for the purpose of ascertaining if they would be agreeable to accept half the deposit, and the Bank of New Zealand had asked for a week to consider the proposition. The answer of the bank was favorable, and he thought that if the Board intended not to divide the money, they should not have sent Mr. Shuttleworth and himself to the banks to make arrangements. He proposed as an amendment, " That the su m of £7,500 be deposited in the National Bank, and the like amount in the Bank of New Zealand on fixed deposit, and the remainder to be deposited in the current account." Mr. Shjttleworth : I quite agree with Mr. Yorke ; the money ought to be divided. He seconded the amendment. Mr. Bayly caid that if the Bank of New Zealand had intimated a wish that the ironey should be divided, he would have been prepared to complete the terms offered, but the Bank left the whole matter to the discretion of the Board. He thought the members of the Board should look at the matter in a financial point of view; and he was sure the Board could not afford to lose £64 interest. Mr. Rdndle : Will the National Bank pay interest on the deposit ? Mr. Bayly : Mr. Hunter told me he would be willing to give the whole interest on the £10,000. Mr. Yorke asked whether the National Bank would pay interest on the £7,500 if it was re-deposited ? Mr. Bayly said he understood Mr. Hunter to say that ho would not pay interest if a lesser sum than £10,000 were re-deposited. Mr. Rundle : Really, I think, gentlemen, this is very queer work not to keep our offer made to the Banks to divide the money. Mr. Davidson thought there was nothing queer about it. He was not a consenting party to the offer being made to the Bank of New Zealand. He considered the deputation had failed to carry out their instructions, as they were told to wait o i both Banks, and they had only waited on one. Mr. Yorke considered the deputation was entitled to uee discretionary powers, and they thought it would be useless going to the National Bank until they had got an answer from the Bank of New Zealand. After some further discussion the resolution and amendment were withdrawn until Messrs. Yorke and Shuttleworth had interviewed the Manager of the National Bank. The deputation returned to the Board in about half-an-hour, and reported that the Manager of the National Bank had consented to accept £'< ,500 on fixed deposit, and to pay the interest on the same from the time the former deposit fell due. Mr. Yorke said the deputation thought the offer was a liberal one. Mr. Bayly thought it would be a pity to lose between £30 and £40 interest on the remaining amount of the deposit. Mr. Rundle : I think there are some other things to be considered besides the loss of the £30. The credit of the Board and their dealings and promises are at stake. . Mr. Davidson again brought forward bis original motion. Mr. Yobke objected to it, as it was irregular. Tho resolution passed at the previous meeting of the Board must first be rescinded. I The Board ultimately agreed, with the i exception of Mr. Davidson, to carry out its former resolution, and divide the money between the Banks.