Bank Legislation,

Star (Christchurch), Issue 5334, 12 August 1895, Page 4

Bank Legislation,

BUMOUBS IN WELLINGTON. [FBOM OUK OWN COBBEBPONDSNT.] WELLINGTON, August 10. BANKING LKGISIATION. While Ministers were all day in seoret conclave in Cabinet to-day, and positively nothing has been allowed to transpire of what toak place behind closed doors, the lobbies were the soene of a busy interchange of opinion and conjecture regarding the rumoured intention of the Government to bring down certain banking proposals in the course of the next week. The origin of this rumour I have been unable to trace, but I have found ample evidence that it is widespread and obtains very general credence. The members with whom I have talked on the oubject are not in possession of any definite information, but from what iB said and from various hints and indications obtained from other sources, I infer that two separate sets of proposals may be expected to be unfolded soon after the financial debate is at an end. There is, firstly, the scheme foreshadowed in the Financial Statement for the Government assuming some responsibility in connection with the landed properties of the Bank of New Zealand Estates Company, so aB to relieve pressure upon the bank itself. This scheme is, aB to its details, still in nubibus, but it will probably be found to embrace proposals for the country purchasing some of the company's lands for settlement purposes, payment being made in Government debentures. This is a proposal that will certainly evoke keen discussion, and I should say that it would be opposed by a number of members who usually eupport the Government. The second set of proposals, according to Dame Bumou?, will deal with the amalgamation of the Bank of New Zealand and the Colonial Bank. One bold report goes the length of asserting that the terms of nnion between the institutions named have been arranged and the agreement signed, subject only to the consent of Parliament being obtained. Those who accept this report mention in confirmation of their belief a previous rumour which alleged that a definite reference to banking legislation contemplated by the Government appeared in the original draft of tho Financial Statement, but ib was deemed advisable at the last moment to excise it. The amalgamation scheme, I learn, is viewed with considerable favour aven by the advanced wing of the Liberal Party, .who see in it a farther i development of the State bank idea, as well as a sounder security against the Government guarantee, and a means of placing b inking business on a safer and more profitable basis. Subject only to the stipulation that the terms of union shall be fair and equitable, it is expected that, the amalgamation of the two banks named would receive well-nigh unanimous support in both branches of the Legislature. Lest some of your contemporaries should again too hastily assume that this is written by commandment or inspiration, I would repeat that these anticipations as to matters of fact have no more solid foundation than the lobby gOBBip already referred to, though the opinions of membera are generally reliable as to what will happen in the event of these proposals coming before the House.