B.N.Z. Globo Assets Co.

Thames Star, Volume XXII, Issue 6623, 10 July 1890, Page 4

B.N.Z. Globo Assets Co.

£1,500,000 DEBENTURES SUB-

SCEIBED

[Pbess Association.]

London, July 8.

The Assets Company in connection with the Bank of New Zealand will shortly be announced with 75,000 preference shares and 850,000 ordinary. One million and a half's worth of debentures have been issued for the purpose of taking over the "gloho" assets off the Bank) The whole of tbe debentures have been subscribed by leading City houses, including Baring Bros, and Co., Glynn, Mills, and Co., and Schuster and Co. The Bank of New Zealand will nominate two of the dirctors in the new company, and the debenture holders three. The manager of the Australian and New Zealand Mortgage Co. will probably be appointed manager of the Assets Company. The general feeling in the city is that as soon as this matter is settled the Bank's troubles are over.

The shareholders of the Bank of New Zealand will meet early in August.

Eight Hon. C. T. S. Eitchie. M.P., will be 'a trustee in the Assets Co., and Mr D. Hean one of the directors.

[With reference to the foregoing cablegram, the Wellington Post says :— "Until the terms of the operation are known no one, of course, can come to a perfect understanding of financial aspect, but we cannot doubt that the separation of the globo assets from the business of the Bank is the best thing that could happen to the Bank. It divides the banking business proper from the business which ought never to have been in their bank at all. These gloho assets overshadow not only llip posifiion of the Bank, but the business of the colony. Once they are safely landed in the hands of a strong company able to hold them till the time of profit comes to them, as come it must in a rising vigorous fiouutryjlike this, the shadow will be succeded by the sunlight of confidence. Much money will be set free, the Bank will be greatly strengthened, and every interest must feel the benefit of the removal of tbe state of tension, not to aay supioion, which hag been prevalent since the famous meeting at which. Mr Buckley threw down his glove."]