SIR GEORGE GREY.

Wellington Independent, Volume XVI, Issue 1610, 20 August 1861, Page 2

SIR GEORGE GREY.

No doubt many of the readers of the English newspapers*laughed heartily, a few months since, at the telegraphic mistake recorded in a paragraph which went the round ofthe press, to the effect that a young lady who went on a visit to some distant relatives caught a chill and was prevented from returning. The telegraph in communicating this information apprised her parents that " Clara cannot return, she has got a child." However amusing the mistake, caused by the alteration of a single letter it was one that for some time weighed down the old folk with sorrow; and however much we may rejoice, now that the scurvy trick which the wires played this colony, in announcing that Governor Browne was re-appointed, has been remedied ; there can be no doubt that in the meantime it caused the most gloomy apprehensions as to the future condition of this Island.

Nowhere, perhaps, has the relief afforded by the publication of the Duke of Newcastle's despatch, announcing the recall oi* Governor Browne and the. re-ap-pointment of Governor Grey, been greater than in Wellington; coming as it has done in conjunction with the intelligence that the Fox Ministry is securely settled in office. It was a great gain to have the Fox Ministry seated with the express object of .trying what effect real negociation would have in averting war; it is a still greater gain to have an influential Governor appointed for the same purpose. Governor and Ministry Jboth.. coming into office to effect the same great end, we may rest assured they will work harmoniously together to secure the common object ; tho securing of which will redound to the credit of each. It was scarcely needed that Mr. Brandon should inform the public meeting on Saturday, that the Fox Ministry was most anxious to co-operate with Sir George Grey ; and yet it is gratifying to be assured that the new Governor will find those who opposed some grounds of amongst those his former policy, are now who will most warmly welcome his arrival.

The past twelve months have witnessed strango changes. Some of the opponents of Mr. Fox's party, last year sunk their personal feelings and, with great moral courage, held out the hand of public recon ciiation at a moment when that reconcilation was most valuable. This year Mr. Fox's party have an opportunity of following the good example set them by sinking all old misunderstandings and tendering a cordial welcome to one to whom they were once partly opposed ; but whose present great mission

tracting the attention by placing an Unnecessary number of them ' before the j public, we have put together the returns I made by the Union and Oriental Banks, — returns, we may remark, which the public are very far from being satisfied with, as they do not. give -the information in detail as respects the several provinces. • The Notes, Bills and Deposits of the two Banks are stated in the returns, to . SOjtli June last,- to be . £970,248 2 0 This amount, less the value of the bullion .: y in the Banks * coffers 226,564 19 1 or ... •• ... ... £743,683 211 is the contribution made by the Colony, at the least, towards the Banking opera- ; tions of the Union and Oriental Banks '< of London. . '" -*■-"-'■-••**•«" Now let us see how much capital . these London Banks loan to New Zealand. ...-"■ t v We find that the debts due to /and . securities held by the Union and OrienI tai Banks, amount to £832,618 5 * 4 ' Deduct from this the - . y '* | amount provided by . ■■-■>. I • the Colony as above 743,683 231

and we have ... ... £88,935 .2. 5 as the Capital lent to New, Zealand, by the London Banks, i.e.., if we interpret their returns correctly, which may not be the case, we admit, for they are purposely* not given in the best possible form to enable us to do so. We have charged the Colony with the whole ofthe securities held by, and debts due to the Union and Oriental Banks; but it may be that the Colony is not liable for the whole amount. Should this be the case, whatever is the amount not due by the colony has to be deducted from the £88,935 2s. sd. which ' we have stated as the capital lent us by these Banks. Then there is another item through which' the Colony's indebtedness may prudently be reduced, and that comes nnder the -head bullion . Thus the Union Bank' transacts business to the extent of £805,270 15s. lOd. with a bullion reserve of 156,024 15s. Id., and the Oriental does business io the extent of £164,977. :6s. 2d. with a bullion reserve of £64,971 15s. 4d. The Union conducts its business with a little less than one fifth in cash agairisfc all its liabilities, while the Oriental keeps almost half as much cash as it has liabilities to meet. Either, tkerefore,' the Union has too little Or the Oriental has to much cash in hand, If the Union. has sufficient j and its long experience must have enabled so judicious' and so intelligently managed an establishment I to settle this point, then the Oriental has a disproportionate amount of cash. " In proportion with the Union it should have only about £32,000 in hand, instead of I £65,000. This deduction alone - would j diminish our liability for the assistance in banking capital to £55,935 2s. : sd. but we may also be entitled to a farther deduction, under the head of securities held by and debts due to the Union and Oriental Banks, the amount of which the Banks alone can furnish 'us with. We would remark that we greatly doubt if the Union Bank was transacting the whole of the banking business of, the Colony, as it. did at one time, whether we might not take credit for the whole ofthe bullion held by the Oriental Bank,, in which case our indebtedness for London Banking capital would be , small indeed, some 20 thousand pounds ; for which they would have in return the profit arising from dealing with, the cash and credit of New Zealand. We think with the aid of these figures the members of the Chamber of Commerce and the public of "New Zealand, in general will be better able to estimate the value and the probable success of a New Zealand Bank.

Two if not three of the gentlemen of the Chamber of Commerce, suggested that the time had not yet arrived to establish a Bank; that we wanted capital, and not the absorption of it, inthe form of Banking. We think they will gather from the foregoing figures, that we get very little capital from 1 abroad by aid of our present banking institutions, f^ith reference to absorption, a few minutes thought will show thenij that capital raised in a community for banking busi- ' ness to be conducted within the community, is not attended with absorption^ in the sense evidently meant to be implied by the use of the term. A. Bankin such case only becomes the agent for distributing, in a particular manner, a. portion of the existing capital of: the community. The way in which absorption takes place, in connection with banking is by raising capital in one community to be applied to the business transactions of another

*In explanation, we ought to state that- the Banker's Returns Act of 1858, requires the particulars of each branch to be sent in to th© Government, who must publish them forthwith, either in detail or in abstract!' The firat return (December, 1858) published after the passing of this Act, gave the details of each Branch, but all tho influence of the Union Bank being brought to bear on the Government, only . an abstract hasbeen published quarterly since. Wo are warranted, therefore, in using the word «« purposely." We may mention as an instance of the benefit accruing to the public from' statistics in detail, that the information .which this detailed quarterlyreturn gavo in reference to Otago, was^svtch a* immediately to decide' the Oiiontal on openiog -» Branch there.

of Island Bay road to the sea; thence Eastward along the sea coast, at high water mark, to the commencement, including Watt's Peninsulu.