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BANKING AFFAIRS.

THE LITEST INFORMATION. jTfBOH OUE OWN CORRESPONDENT.] WELLINGTON, August 27. The scheme recommended by the committee for the severance of tiie Estates Company from the Bank of New Zealand proposes that the book value of the company's properties shall be written down by one-third, being reduced from £2,700,000 to £1,800,000. The properties shall then be taken over by the Government, whioh shall issue debentures to pay for tbem. A Board of Realisation is to be set up, with instructions to realise the town properties at once ; but the term for realising the country properties will be extended, probably to five year?, during which time all profits made by the bank are to be handed over to the Government as an indemnity against loss on the realisation of the properties. This scheme, it will be seen, giveß relief to the bank without raiting a foreign loan, places the State in possession of large areaß of valuable lands, and makes the bank shareholders pay for the realisation by foregoing dividends for five years. The report of the committee is almost oertain to be carried.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/TS18950827.2.40

Bibliographic details

Star (Christchurch), Issue 5347, 27 August 1895, Page 3

Word Count
184

BANKING AFFAIRS. Star (Christchurch), Issue 5347, 27 August 1895, Page 3

BANKING AFFAIRS. Star (Christchurch), Issue 5347, 27 August 1895, Page 3