The Taranaki Herald.

Taranaki Herald, Volume XLIII, Issue 10111, 18 September 1894, Page 2

The Taranaki Herald.

PUBLISHED DAiLY "TUESDAY, SEPTEMBEiTIB7IB947 The terms of agreement by which the Bank of I'Tew Zealand consents to take over the business of the Colonial Bank, and the conditions on which the latter institution concurs in tho proposal for amalgamation, have been laid on the table of tho House of Representatives and published by most of tho newspapers in tho colony. Tho proposals liave now to be submitted to tho shareholders of gboth the banks, and if op-

prove 1 by them, and the Cabinet and Parliament consent to the amalgamation, there will be one bank less in the colony. In Australia there is a movement in the panic direction with regaid to the amalgamation of banking establishments as is now apparently taking place 'in hew Zealand, and the question of theie being too many banks for the business, or over banking in Australasia, is being discusser! freely in the financial papers at Home. In a series of " Australian note 3," the Statist (a London paper) regrets that " there are no serious negotiations for the amalgamation of some of tho banks," heard of " no preparations for windingup those whose credit is hopelessly gone;" aud says that "it is obvious to every one who considers the matter carefully that Australasia is altogetherover banked and tliac if (.he number of banks was reduced to about one-third of what they are at present, it would bo hotter for the remainder." Tho situation is further described :: — '• There is as yet no sign of improvement in the colonies, distrust is general ; the reconstructed banks are all discredited, and people are anxiously asking, Will they bt> able to pull through? Prices in Europe are so low, the value of property in the colonies has fallen so ruinously, that there is practically no demand for money. Few people care to keep large current accounts with the reconstructed banks, and if they want to overdraw they have to lodge good security. But in these times it is not everyone who con lodge good security. 1 bus there is utter stagnation, and the question is : Can the banks earn 4^ per cent interest upon their deposits for the five years during which the deposits cannot bo withdrawn ?" The iStaliot is evidently not well posted up in colonial banking matters, or the writer of the article would have been aware that several amalgamations of these financial institutions have taken place both in Victoria and New South Wales, and the existing banks have even contracted their business very considerably of late. During the last twelve months two of the Sydney banks closed sevonty-five of their branches, and Melbourne banks have considerably exceeded that number in their retrenchment. In Australia, it would appear that there are metropolitan and country bank?, and by tho former closing their branches in the country, and turning their business over to the local institution, they liavo practically effected amalgamation on a very extensive scale, without interfering with the constitution of their establishments. There are twenty-three Australian banks For a scattered population of 4,100,000, and they do a business of £124,000,000, or on an average of five and a halE millions each. Their total assets average over six ami a-half millions sterling each, and such being the case we should hardly think there was any reason for reducing the number of banks in Australia by one-third, as the Statist suggests. The bankers in Australia have had their warning, and they are effecting amalgamation where necessary and reducing expenses to the lowest possible limit. As a matter of fact, in eight yeais the number of banks have be»n reduced from twenty-seven to twenty- three, whilst the population has increased 23 per cent. One of the greatest evils in connection with the banking institutions in Australia has been the lavish expenditure on the buildings they have erected to do their business In. Some of the banks have had built grand head offices in the principal cities, whilst in country towns and village*, the bank premises' extensions have been on a costlier and larger scale than the percentage of growth of bnsiness warranted. A Sydney paper says: -'Over a million sterling, representing, say £50,000 to £00,000, has been tho excess of annual expenses beyond the proportion of the increase of business, supposing the inc. c -so justified a rateable addition to expenses." It has, therefor?, been " bricks and mortar" that has had a good deal to do with bringing the Australian banks into their present unsatisfactory position. It has been mnch the same in New Zealand, for shareholders' money in the colony lm been lavishly expended in buildings quite unnecessary, and if the amalgamation of die tfew Zealand and Colonial Banks takes place there will sure to be a large number of thoso palatial structures empty. Another very serious aspect presents itself with regard to tho amalgamation of these two banks. As one staff of officers will be nearly sufficient to do the business of the combined institutions the service of thoso not required will have to be dispensed with. This means throwing out of employ a number of officers who aie perhaps lit for no other occupation. It is true thoso "vlio are turned adrift will be compensated; but the money spent in that way might, we. think, with economy in other directions, go a long way to render the amalgamation of the two banks unnecessary. The agreement between the banks for their amalgamation is still being considered by tho Cabinet, aud when the Ministers have decided on tho line of action they will recommend, the whole matter will be discussed by the members in the liouso. It is difficult for those who are not behind the scenes to find out what benefit the amalgamation is likely to bring about to tho shareholders, but wo know it is the opinion of many that whilst it will not strengthen the amalgamated banks, the other institutions doing business in the colony are likely to profit considerably by the change-.

The public meeting to bo held in the Council Chambers at 8 o'clock this (Tuesday) evening has been convened by the Scenery Preservation Society, for the purpose ot considering the question of advertising the advantages, etc., of thp district in othe/places. Considering the object of tho meeting there should be a largo attendance. A meeting of local shareholders in the Colonial Bank will bo held at tbo Council Chambers on Wednesday afternoon to consider tho proposed amalgamation with the Bank of New Zealand. Several members of the Hospital and Charitable Aid Board visited tho Old Men's Home near the Hospital after tho meeting on Monday. Some of tho members wero of opinion that the Homes should bo in charge of an olficial. The Otaki Maori Band will arrive by train to-night, and will proceed by steamer to Auckland, being on their way to tho King Country to attend the ceremonies connected with the death of King Tawhiao. Mr C. M. Lepper and Mr F. W. Atkinson arc p.'n.Kongorn by tho r.k. lonic, which loifc London on August 10, for Now Zea land. Tho following tenders were received by Mr F. Mossengcr, architect, for building a cottage in Pendarvcs-strcot for Mrs Evana :— ll. N. Hooker (accepted), £239 10s ; G. A. Mustehin, £247 ; G. Maine, £248 Gs ; C. Webborloy, £2GO ; T. Dixon, £207 10s ; J. T. Mannix, .£2(!!1 ; J. B. Piobbio, £20!) 10b ; J. Lovoridgo, £273 ; G. Cliff, £273 ; Coleman and Son, £285