The Timaru Herald. WEDNESDAY. OCTOBER 30, 1889.

Timaru Herald, Volume XLIX, Issue 4682, 30 October 1889, Page 2

The Timaru Herald. WEDNESDAY. OCTOBER 30, 1889.

jWt liavu n.itcbocl witli couaiil«rab!u iutcrest fur csprctibioiia of opinion ou tlio p.irt ot our cnntuuiporurics with ivpartl to wliat took plucu nt tlio recent half-yearly meeting (if (ho Bunk of Now Zonland. Oiu- owu n[iiiii«ju was us iiu'ju as thu ropait rciclitd ua, but. the HuVJ<;ct m of ouch iuiportanee tbut we

need not apologise for referring to it t agaiu, especially as our object ia to show t v.hut is the feeling m vnrioua parts of : the colony. We have now had the i opportunity of reading a good mauy | articles published at Ibe larger centres, I and shall quote from a few of them. The Otayo Daily Time* opens by regretting the course of events at the meeting, " and cannot avoid tbe belief that what happened must have nn exceedingly prejudicial effect, not only upou tbe future fortuues of tbe bank, but also upon the reputation of tbe colony." Our Dunedin contemporary aayß that an independent enquiry ia necessary to test the truth of tbe assertions made by Sir Buckley. The article concludes ns follows : — " A word remains to be said about the conduct of Messv3 Buckley and M"Lean. No one can dispute that they were m duty bound to revcul to tho shareholders tho discoveries they bad made biiice the issue of tbe report of the committee of investigation ; and although iv doing so they convicted themselves 5 , as members of that committee, of culpable negligence, the coinage of the revelation might, have hfcn held to In: a set off ngitinst their original fault, if this revelation had been made six months ago, or with the least consideration for the interests of tbe shareholders. But it appears that these gentlemen delayed their revelations until they had disponed of their interest m tbeiv result. Tli-y were wealthy men, entrusted with the confidence of the shareholders. They took advantage of their superior kuowledg.of the all'iirs of the bank to deliberately dispose of their shares before striking the blow, and tbia after specifically assuring tho public iv their report of last yeai" that under the new conditions tbe blkiiph offered ' a good investment. ' Of such conduct it is diflicult to speak m too strong terms, though it may Riilliee to say that Messrs Buckley ami M'Lean have entirely forfeited the confidence nnd respect of all men who love straightforwardness m their dealiu»s with their fellows. We are quite certain that they will yet realise, and that m a very marked manner, how contemptible has been their action. 1 ' Perhaps those remarks aro about the strongest und straightcst which we have read regarding tho notion of Messrs Buckley' and M'Lean. Of Mr Buckley's action the Christchuich IVivi says : — •' When it was exactly that he first began to doubt the accuracy of his own representations be has not informed us. Business men at tbe meeting jmt it that the position bus not been essentially altered since April last, when Mr Buckley mndi." the speech from the president s chair. On that occasion, as we havo already said, not :i syllabic was uttered by the chairman giviug tbe slightest indication of dissatisfaction. If lie had any misgivings he kept them to himself. Instead of' taking the shareholder* into bis confidence at that time, or us soon as he bad made up hisj mind on the matter, be kept bis so-called revelations to himself till he had gut rid of bis share. If he had been an ordinary fabaiebroker he would have filt bound iv honour, we should have thought, to give the benefit of any dbcovery he thought he had made to tho3c who bad bought shares upou the streuglh of representations made by himself. But for a director, a newlyiippuintod president, brought m upon the fall of otbera, who wore thought ■>> have misconducted themselves iv tinmanagement of the bank, and had fallen because of that mismanagement, for him to be guilty of so serious :i misuse of his position as this betokens is indeed the hist thing that could havo been exp* eted." The Welliugt'.in papers are cqii illy severe on Mr liuekl.-y. but th,« Nnr ft.tbnul Tun--appears to be under the impression tli.it his principal object w;is to " bear " the shares m order to create an opportunity for buying iv again at a cheaper rate. That s«eius to ih to be au exceedingly farfetched idea, and iv no other instance h;ive we seen it sugg'.'sti-d. In Wellington the proposal to remove the headquarters of the b.uik to Londoa, has not been received with universal approval, and the critics, though cheerfully admitting that there. has been enough and to xpnrc of Auckland m.-innpi.-rru-nt, would be- wry fclad to see the directors .sitting iv the Kmjiir<: City. Tho l>\idi"ff neivsp.iper m Auckland, the N. ,:■ Z^bwl JJ< ,-,./.,, I'M:; Mr Buckley down very easily m tin: following sentencca :— " We cannot think that Mr 1 5uok Icy will be 1m.,h, ; out m litM contention that the :diareholders' committee were merely a medium for conveying to the .shap:holders the estimate. 1 ! of the biink'i officials and tbe exports wham tiny employed to examine tho bank's assets. The impression of thorj<? who took up shares upon their recommendation was that they had made n real invrxtigntion and had tested m some reasonably BulKoient degree the accuracy of these estimates, though possibly they, ns well as tho ofliciala who reported on the bank's assets, may have hern Hnmrwimt too Banguiuc. At the meeting it w.ia rather late m the day iv making his s:> called ' revolutions, ' and he would havo stood higher iv tho catimiiiion of the shareholders had he made them before ho sold his shares." The New Zetland Jhtahl, though with great regret, admits the necessity of removing the headquarters to lioudon. Our northern contemporary Rny:s on that, point: — " Though the colonies nnd the t;it iz--nn of Auckland iv particular will regret thi! change it baa become so obviously imperative that we believe almost iniivenial iiKRi-nt will !»■ given tn it. We understand that it. is not v moveni'iit which the directors m London h.ivr themselves pressed for, though il is one of which thoy approve, und which they are prepared to support. It may be fluid, indeed, that the public and privnte financial policy of the colony have constituted London m Rome respect u the monetary capital of New Zealand, and there need not be ii doubt that a judiciotm London board, recognising that the pronpi.'l-ity of tin; bank depend:; upon thn development of its colonial biiHiness, will show duo regard for colonial intercßtA'und requirements, and will permit the neccuHaiy latitude to local administration." Wu have drawn upon, uuly a few of the »i ticlcu which . have been v.'iitten colleerning the pioecedingH at the meetiug, but on the whole, public opiuioll appe.UH to be , pretty unanimous on these points : That . Mr Buckley's conduct m l.eeping b.ick i his information is utterly indefensible j . that the rcuiovul of the lu'udquurlers o£ : .tli'; bank from Aucklttnd (to London

most nf the papers think) is ncccsiary ; that i£ there be any trutb ia Mr Bnckloy'a nsscrtious, be liaa at all events exaggerated to a very considerable extent ; and, fiaulty, that tbe stability of the bank is not endangered.