BANK OF NEW ZEALAND BILL.

Waikato Times, Volume LV, Issue 6278, 19 November 1903, Page 2

BANK OF NEW ZEALAND BILL.

In explaining the chief features of tin above Bill, Mr !Seddon said it confirmed thi existing law in respect to the Bank stool that was guaranteed by the colony, with the exception that the amount of tin guarantee was reduced from two millions to one million. The lesser amount was al! that was now necessary. The colony wanot charging the Bank anything for tht guarantee. With regard to the half-mil' lion preference sharos which the Go Tom ment had the option of taking up withir six years, it was proposed to make these the property of the Bank. That wat the partnership of the colony with the Bank. An Hon. Member : Up to what date ? Mr Seddon: Permanently. After the Assets Board's liability was paid oil thert would be a distinction between the dividend payable on the preference shares and ordinary shares. The colony'i dividend on the preference shares would be limited to 10 per cjnt., which would represent the colony's limited partnership. A further valuation of the Assets Board's properties would be made in 1008, and if the assets of the Board then met the liabilities due to the Bank and the colony, the Assets Board would cease to exist, and the assets would pass over to the Bank. If the present prosperity of the colony continued, the indications were that in five years' time, or less, the Assets Board"s assets and liabilities would be equal. The management of the Bank would continue as at present. It had been satisfactory, and he extended to those who were responsible for the Bank's control his best thanks. There was a liability of i>3 6s 8d per share, which the Colonial Treasurer could call up at any tiuie on the report of the Assets Board, and if called up the money went to the Assets Board direct. There had been no necessity to call it up. In fact, the Government had hesitated to call it up, as it would have become dead capital. Under this Bill it was proposed to call the amount up as ordinary capital, if necessary, but it was to be security for the liabilities of the Assets Hoard, and to go to the Board. The difference would be that, if called up,it would become dividend-bearing. Another point was that the Bill gave the Bank power to re-issue the forfeited shares held by the Bank, but if reissued they must be submitted to the public. Not oniy the directors representing the shareholders, but the directors representing the Government, had concurred in the Bill, and the terms had b arrived at unanimously. Whilst endeavouring to safeguard the colony and make its position towards the Bank permanent, the Government had done fairly by the Bank itself, its shareholdots, and its managers. He thought on the whole the colony and the Bank wore to he congratulated. The Bank had an important bearing o;i the welfare and well being of the colony, and for the colony to have a permanent interest in the institution would strengthen the Bank itself and would for all time prevent such trouble as had occurred in the past. The Bill was final in all its provisions, and there would be no necessity for more Batik of New Zealand legislation. It was automatic iu winding up the Assets Board, and gave the Bank au opportunity of paying oil its liabilities to the Government, lie said, looking back over the past eight years, it was a matter for congrat dation that things had turned out as they had dune. Mr M issey asked whether the l'remier proposed to take cash or debentures for the half-million preference shares. Mr Seddon replied : The debentures were issued when the colony bought the shares. The money is lodged with the Public Trustee now. We give the Public Trustee security for what ho holds, and the Public Trustee leaves these securities to the Bank. The Bank realises them, and if they do not bring in par value, the Government will) have to make up the deficiency out of j consolidated revenue.

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