1.-1

32

usual to keep the proceeds of deficiency bills in the coffers or drawers of the public offices. It is for me to show that the money had the effect of assisting the Bank of New Zealand, and that it was " abnormal finance." The floating of these deficiency bills might have a double advantage. lam not now bound to say exactly what my evidence will prove. I point out that there is a "double crisis" alleged to have occurred, and that the two were working together. Hon. Sir J. Hall —To quote the words of your speech—"Here, then, we have at this double crisis " —does your extract cover that point? Mr. Hutchison. —Yes. Hon. Sir J. Hall. —Will you point that out ? Mr. Hutchison. —" Here, then, we have at this double crisis—a crisis with the colony and a crisis with the bank—the chairman of directors the Attorney-General of the colony," and so forth. Then, in the charge numbered 1, I read: " That the two-million loan having been raised in June, 1888, the proceeds went to relieve the necessities of the bank, and that, while its true position was not disclosed, the Ministry made such representations through the Agent-General as were incorrect in point of fact, and misleading." I submit that is the gist of the whole passage beginning "It will be remembered " down to " the coffers of the Bank of New Zealand." Hon. Sir J. Hall —Would not that have had, at the same time, the other result of assisting the colony ? Mr. Hutchison. —Certainly. It was " a double crisis " which had to be met. Hon. Sir J. Hall —Does your charge cover that ? Mr. Hutchison. —lf it does not I am quite willing that the Committee should alter it. Hon. Mr. Ballance. —Mr. Hislop dwelt upon that. I want to call your attention to that. Mr. Hutchison. —l am content to go by my speech. Hon. Sir J. Hall. —That will go in with the contentions ? Mr. Hutchison. —Yes. Hon. Mr. Bryce. —l would suggest your explanation is not quite full upon that point. You state that not only was this money required to fill the coffers of the Bank of New Zealand, but you imply, as I understand it, that it was not wanted for the purposes of the colony ? Mr. Hutchison. —l do not say that. I state that there was " a double crisis." I would point out, before I leave this charge, that the extract, as given by the Ministers, occupies about one-fourth of the passage that I extract in regard to the same charge. Mr. Hislop says this, the part omitted by the Ministry, is introductory. Well, I have yet to learn that introductory matter is not relevant matter to understand a particular charge. The next charge is thus formulated by me : " That, pending the raising of the two million, extraordinary expedients for raising money on the public credit were resorted to by the Ministry, and that, among other expedients, at the end of the financial year, on the 31st March, 1888, upwards of three-quarters of a million sterling were outstanding on deficiency bills, with the result of assisting the Bank of New Zealand at its half-yearly balance on the date mentioned." The extract from the speech which has relevancy to this second charge, as thus formulated, commencing " The loan was floated," and ending " representing what they do not know to be true," is about three times as long as the extract that the Government has handed in. In the passage quoted, the figure of speech " bolstering up the bank," is used. Now, if the Committee think it ought to be put in such terms, it is for the Committee to say so; but the words cannot be taken literally, and I submit they are substantially covered by the words I have used. But instead of "misleading," as used in the formulated charge, let the word be altered to " deceptive," if the Committee think that alteration an improvement.

Thuesday, 31st July, 1890. G. Hutchison, Esq., M.H.E., in attendance. The Chairman. —Will you continue your statement please, Mr. Hutchison. Mr. Hutchison. —l think I dealt with charges numbered 1 and 2 yesterday. The third reads.: " That then and subsequently " —covering a period of three years —" large balances were left uninvested in the hands of the bank, as shown by the public accounts of the colony." Mr. Hislop suggests that neither that formula nor the extract which I have appended, beginning, " Now, let us see how the Ministry were aiding the bank," and ending "documents issued by the Colonial Treasurer," is full enough, and he refers to the subject of "remittances." I have no objection whatever that my charge should be altered to read: "That then and subsequently large balances were left uninvested in the hands of the bank, and remittances made, as shown by the public accounts of the colony." The Chairman. —Remittances made to London? Mr. Hutchison. —Yes, to London; and I would supplement the printed matter under No. 3by adding that passage which appears as Mr. Hislop's " charge No. 4," which you have altered to 3a, beginning " One more reference," and ending "£800,000." My extract would then be 3 and 3a. I take the whole of the letter-press which you have called 3a, and I would graft that on to my extract No. 3. Sir, I would pass over in the meantime the formulated charge numbered " 4," and go on to that numbered "5," which reads, " That the Colonial Treasurer, notwithstanding a contrary expression of opinion by the House of Representatives in 1888, did refer to the Public Accounts Committee of 1889 for their consideration, but not for their report, a proposal to pay certain public moneys towards meeting the interest due in November, 1889, by the New Plymouth Harbour Board in London, and that he did afterwards, without authority, disburse upwards of £4,992 under circumstances such as to suggest the ability of the Board to meet its engagements." The passage on which this charge is founded is a long one, beginning, " Now we come to the conversion scheme of last year," and ending " £70,000 more." Ido not think I need trouble the Committee with many observations about this charge, as no objection has been made to the form in which