THE BANK OF NEW ZEALAND.

Taranaki Herald, Volume LIV, Issue 13207, 4 July 1906, Page 4

THE BANK OF NEW ZEALAND.

Th« wonderful iDrogress .of the Bank of New Zealand, .as disclosed »by the balance-sheet, was referred to by us ■at some leng-th a few days ago. The ins titution, is now m X an exceptionally sound position, and there is * better time in stor-e for shareholders, who if they, as 3tr Watson stated at the annual meeting, receive even more than 10 per cent, dividends^ , will be only getting a small return on the money contributed and sunk in the institution to their loss and to that of no one V else:* The Work of the Assets K-ealisation Board is . nearly at -an end. and its dissolution will soon com© about. In the circumstahces there is speculation as to the future of the Bank, and in this connection some remarks made by the ■Mercantile G azette , in - a recent issue may not prove iminteresrbing. Our contemporary says :-"What the future of the ba'wk is to 'be is now a speculative matter, 'for the reason that the political conditions of the country have undergone * a violent change since the lamented death of Riohard John Seddon. Will ttob-ank be allowed to continue its present relations with the State ? Will it toe cut adrift and permitted to work out ■ its own salvation in its own way ? or will it be 'merged into a. State Bank ? It is impossible to answer these questions off-Hand 'because of th-e difficulty of determining which party will have the ascendancy in tire political life, 'of the country. Hitherto w© have ■ managed with .two dis-. tinct parties, "bat now the, leaders of Laibour soenn ianxious to ; introduice 'a third party. Tliis means that tliie Labou* party hold the . key of the position: They must .effect, a compromise* with one or" the other of m existing parties' or remain distinct with substantial representation. ** either event it is not unlikely tn-at they will 'stipulate for a State Bank, as that 1 is one of the solid planks of their poHtical platform. Perhaps iff

the intewla of the .bank were considered, th 3 institution wouHd be ieleascd from its clore connection with the State, but the advocates of a State Bank may wenro Ruffi^nt power to obtain their ends t**L they would be able to adduce some plausible arguments in support. Aoi Lstance, it may be asked d *ho State ' is justified in , coming x o . tiie rescue when an in titution is on tnc verge of dissolution, why cannox^tnc State interfere when a p«nod ot prosperity is reaped ? The factthat the bulk of ihe, shareholders of Bank of New Zealand "wre non-resi-dents of tire colony would be viewed as further justification for converting the institution into a State Bank. There are possibilities m the situation, with T-oWcb and parties in a state of unrest/'.- .. . v.