HOUSE OF REPRESENTATIVES.

Taranaki Herald, Volume XLV, Issue 10654, 1 July 1896, Page 2

HOUSE OF REPRESENTATIVES.

Tuesday, June 30.— The Speaker took the chair at 2.30 p.m. Mr Seddon gave notice to introduce the Representation Act Amendment Bill. The debate on the Banking Committee question was resumed by Mr W. Kelly, who said he thought a Parliamentary Committee was the proper body to make the enquiry asked for. Mr Cadman moved another amendment : (1) That the enquiry should be made into the " affairs of the Bank instead of the " position of the Bank ; (2) that the Committee should ascertain what amounts had been writtem off since Ist January, 1888, and what had led to such writing off ; (3) that enquiry should be made into the appointment of the President and General Manager, of the Bank of New Zealand, and their connection with tbe Colonial Bank ; (4} amy negotiations which may at any time have taken place between the Colonial Bank and the Bank of New Zealand and the Ministry, or any member thereof, with a view to amalgamation or purchase ; (5) the purchase of the Colonial Bank by the Bank of New Zealand, with special reference to fa) the position of the Colonial Bank at the time of the first proposal for amalgamation or purchase, and subsequently (b) the accuracy or otherwise of representations made to the Bank of New Zealand, the Government, or any member thereof, with reference to such amalgamation or purchase, (c) the amount paid for goodwill, how it was arrived at, and the correctness or otherwise of the estimate.

Mr J. W. Kelly wished to move an amendment to the effect that a Royal Commission be appointed instead of a Select Committee, but the Speaker ruled that the amendment was too late.

Mr Fraser contended that a Royal Commission was the proper tribunal- to deal with this question. He protested against the proposal in the Premier's motion to enquire into tha private accounts of individuals, and those who voted for that would do so with the deliberate intention of betraying the Bank. Messrs Crowther and McLachlan also spoke, after which Mr G. W. Russell's amendment (as telegraphed on Friday evening) was put, and rejected by 39 votes to 20.

Mr G. J. Smith moved a further amendment, confining the scope of the enquiry to the immediate circumstances leading up to the Banking legislation of 1893. He strongly deprecated the proposal to enquire into the private accounts of individuals.

Mr Seddon said he only spoke now for tbe purpose of denying the imputation that his motion was meant to rake up dead men's accounts. There was quite sufficient ior the Committee to enquire into without doing that. Public feeling in tho colony would never be allayed unless there was a drastic enquiry into tho whole matter, and if the power of the Committee was limited to 1894, the enquiry would be a mere sham, and no good would result from it. It was largely stated that false balance sheets had been prepared by the Bank of New Zealand in the past, and they should find out who were responsible. Mr G. J. Smith's amendment would entirely burk the enquiry. His opinion was that the Bank of New Zealand at the present time was the strongest financial institution south of the line.

Mr G. W. Russell contended that the report of the Committee asked for by tho Premier would not satisfy the country. Mr R. McKenzie was convinced that if the Premier's moti«n were carried it would do the Bank more barm than its worst enemy would do. Dr Newman said he had no faith in the Premier's Committee.

Hon. Mr McKenzio reiterated the statement that the enquiry would do no harm to people doing business with the Bank. So far as the Government were aware the President of the Bank had never used his veto,, and he had, never consulted the Government as to using his veto.

Mr Buchanan condemned the Premier's motion as likely to ruin the Bank. The debate was interrupted by the 5.30 adjournment.

On resuming at 7.30 p.m., Mr Bell, continuing the debate, said it was impossible for the Bank of New Zealand to show a profit if its private accounts were to be enquired into as proposed by the Premier.

Mr Hogg held that every man, woman, and child in the colony was deeply interested in this Bank, and it was a monstrous thing that its affairs were not to be investigated. Mr Pirani very much doubted tho sincerity of the Government over 'the whole matter. He thought the r enquiry should be conducted by a Royal Commission, and it should be found out whether Mr Ward knew his own. position in connection with the Colonial Bank when Mr Watson was appointed President of the Bank of New Zealand.

Mr Duthie said it seemed to be assumed that the Opposition dreaded investigation, but they Vud nothing to fear in that respeot. whilst he saw a gentleman on the other side of the House who lost £50,000 by a certain institution. He saw no use in raking up the past.

Mr R. McKenzie had no deairo to go into dead men's accounts, but if it could not be avoided it must be dene. Personally ho favored a Royal Commission. Several other members having spoken Mr G. J. Smith's amendment was lost by 37 to 24.

The first clause of Mr Cadman's amendment to tho Premier's motion was agreed to on the voices. Tne secon<? clauße amendment (directing Committee to ascertain what amouDts have been written off since Ist January, 1888, and what led to such writing off) was carried by 33 to 28- The remaining clauses of Mr Cadman's amendment were carried on the voices, the only alteration being in clause 3, to which an addition was made extending the scope of the enquiry into the appointment of the president and general manager of the Bank of New Zealand to make it include " Their connection with any of the constituents of the Colonial Bank or with the Banking legislation of 1893, 1894, 1895." Mr Seddon intimated that Messrs Houston, Lang, and Collins wished to withdraw from the Committoe, and their names were struck off.

Captain Russell and Mr Buchanan also withdraw from the Committee.

Mr Seddon then stated that the names of those who would remain on the Committee were the Hon. J. McKenzie, Messrs Graham, Montgomery, McGowan, and the mover. He gave notice to move that the names of Messrs Geo. Hutchison, Tanner, Muslin, Guinness, and Stewart be added to the Committee.

Mr Hutchison gay« notice to move that the proceedings of the Committee be open to the Press.

Mr Seddon gave notice to .introduce the Legislative Council Act Amendment BilL The House rose at 1 a.m.