AUSTRALIAN COMMENT.

Star (Christchurch), Issue 5356, 6 September 1895, Page 3

AUSTRALIAN COMMENT.

[Special to Pbkss Association.] MELBOURNE, Sift. 6. The financial editor of the Argus, referring to the action of the shareholders of the Bank of New Zealand in London, states t'dat it )B difficult to see what good can result by the adoption of their views, and denunciation of Mr Ward's, statements in London will not mend matters. The demand for liquidation will not in itself justify liquidation, for if the directors choose to keep the bank open and regularly pay creditors' claims, and the Government isbaokingit up, a winding-up resolution can hardly be carried. The shareholders unquestionably have been badly treated, first in baing led to contribute a million of fresh capital and then having the control of their affairs taken from them by the Government* which,, probably, entailed upon them a greater loss than would otherwise have occurred. What is to be feared from the whole business is, that the English courts may be brought into collision with the courts and Parliament of New Zealand. Thia would give colonial credib a great shake. The Government should not have interfered without being prepared to guarantee the creditors and relieve the shareholders of further liability. If a majority of the shareholders 'should declare in favour of liquidation, a very peculiar condition of affaira will be created.