BANK OF NEW ZEALAND.

Taranaki Herald, Volume LXI, Issue 144250, 14 November 1913, Page 5

BANK OF NEW ZEALAND.

qjILL IN COAIMITTEBi,

REPORTED WITH AMENDMENTS,

PEE I HESS ASSOCIATION ■ WELLINGTON, Nov. 13. Tho House went into Committee on the Bank of New Zealand Bill. Mr. D. Bnddo moved, on clause 3, to limit the currency of increased stock to ten vears instead of to twenty. Air. H. G- Ell asked for the reason for making the term twenty years. He thought it was. there to prevent the bank’s affairs being discussed in the House for twenty years. The Hon. J- Allen said he could not accept the amendment. The proposal came from tho directors, and was in the direction of ensuring stable and sure finance. The bank could be discussed every year on tho balance sheet which was laid before the House, Tho amendment was lost on tho voices. On the clause providing for new capital to the extent of £3;000,000, Afr. J. A Millar moved to reduce the amount to £2,000,000. He said the proposal was the biggest watering scheme he bad ever heard of. He would not agree to the bank having a capital of practically £6,500,000, when that amount was not required for the bank’s busin<?Alr. Allen explained that if the amendment were carried the Government proportion of ono to two would bo upset. Sir Joseph Ward said it seemed to him that thrw more shares issued to shareholders in future the less likelihood there would be of the Government’s proportion of interest being maintained. He thought that £3,041.000 of extra capital was too much, and if there was to he a reduction, the proportion of .one to two should be maintained. Afr. Allen said that what was proposed was to call up about £1,000,000 next year. There were a great many shareholders who wanted to pay off the Government’s £1,000,000 guarantee. Ho was of the same opinion, but if all agreed ■ that the £1.000,000 should he paid off—and the Government got no benefit out of it—the bank must have that £1.000,000 on hand. Therefore, ho said, the £3,000,000 extra capital must stand. Air. Ell said it was ridiculous to suggest that the proposed capital was necessary, . .Mr. Alillar said that under lus pronosal the shareholders would hold 300,000 shares against 225.000 of the Crown’s. Compared with the banks, of Great Britain, the Bank of New Zealand carried very much more capital, bearing in mind the proportion of trade. The Home divided on Air. Millar’s amendment, which was lost, 22 voting for it and 44 against. Mr. Alillar then moved to bring all the shares up to an equal value. The Afinister said ho could not accept tho amendment, holding that if it were carried it would mean that tho bank would hare to call up all its capital on existing shares. The amendment was defeated by 42 votes to 23. , At clause 12, Afr. R. APCallum moved an. amendment to the limit of bolding by any one shareholder to four thousand. ■ Tbo amendment was defeated by 37 votes to 19. Mr. J. Craigie moved a new danse, providing for two per cent, interest on current accounts. Ho explained that the Bank of New Zealand had £14,000,000 of money on which it was paying no interest as was clone in many of the Homo banks. Air. Fraser said ho could not accept the amendment, ap it would bring deposits to the bank that it could not use, and would do tho bank more barm than good. The amendment was defeated by 42 votes to 3. Air. D. Bnddo moved to reduce the innuat charge for keeping accounts from 10s to 2s 6d. (This was lost by 29 votes to 19. The Bill was reported with amendments.