BANKING.

Star (Christchurch), Issue 5055, 14 September 1894, Page 1

BANKING.

Projected Amalgamation. The Wellington correspondent of the Otago Daily Times cays : — Various rumours as to the contents of the eigoed agreement between Mr Murray and the Hon G. M'Lean, for their lespective banks, are afloat, but I believe the following to ba near tha mark: — For the purposea of account the bhares of the Colonial Bank shall be credited at par, and those of the Bank of New Zealand at a discount of 33£ off par value. To balance this discount, epparently, .£30,000 i_ to be paid from out of the first profits of tho amalgamated bank to tbe credit of the Assets Company, and that concern is to be further Contingently benefited by tbe payment of all the profits of tbe bank in excess of 6 per cent for ten years. Excepting as to tbia liability, the Assets Company will be completely separated from the bank by statutory enactment. Power will ba takeu by the Bank of New Zealand to issuo new shares to Colonial Bank shareholders of a faoe value of £2, wbicb is the par value of tbe shares. Theae will not carry any contributory liability, and the present shareholders of the Bank of New Zealand will, I understand, be placed in a eimilar position. As to this last condition, both classea of shares will thus rank as paid up. The par value of the new isßue of New Zealand to present shareholders will be £5 5s and £7 10s upon each class "of shares respectively, lesß 33| per cent in terms of the agreement, while the New Zealand Bank shares to be issued to Colonial Bank shareholders wiil have a face value of £2 without further liability. It would thus seem that the Bhares are practically taken at par on either side, and tbe New Zealand stock written down t_ admit of an immediate and contingent contributory assistance to the Assets Company, which otherwise will be absolutely separated from the reconstructed bank.

fFQOai OTJK SPECIAL CORRESPONDENT.] AUCKLAND, Sbpt. 13. The Siar to-night, refening to the proposed bank amalgamation, cays — "We hope that nothing will bo done hastily in this matter. The colony has beoome com* mitted to a liability of two millions on tho Bank of New Zealand, and any agreement affecting it mast be subjected to the most rigid parliamentary scrutiny, and shonld only be sanctioned if unmistakably in the public interests. Certain reports of a confused character regarding the terms of amalgamation have gained currency, bat our correspondent, talegraphing thi. afternoon, sayß it is impossible to obtain any authoritative information, and all reports are unreliable. The agreement is to ba laid on the tablo o? the Honse on- Tuesday next. As we have -said, the public interests concerned are of tuch magnitude that 'the Government and members of the House mnst ccc that these are fully protected. This is a matter which ahould be dealt with irrcsp-dive of party."