7

1.-8

Was not so because the amount was a little larger or a little smaller as the case may be, but I ivill say it was a very, very heavy amount, and an amount which has never been discharged to this day, and, if the Government will appoint a Committee on the subject, for which I hope to give some further reasons later on, to inquire into the transactions of the Government with the Bank of New Zealand during, the past three years, I take upon myself the onus of proving that what I now say is absolutely correct. Here, then, we have at this double crisis ia-the-meaey market — a crisis with the colony and a crisis with the bank — the chairman of directors ei—the-Baak of Now Zealaad the Attorney-General of the present Ministry, as a geßtleH*aa-&f-g«sat-espei : ieaee power in politics, aad-whe one had been the Premier of the colony before, and from his great ability and long experience was no doubt entitled to a great deal of weight in the counsels of the Ministry. What was done ? The As I have said, the loan could not be raised : no assistance could be looked for from that source; but a perfectly abnormal state of finance wao carried—on that year had been created for the emergency by authority being taken for the Colonial Treasurer to float £840,000 of deficiency bills. It This was quite an abnormal state of things, the normal state amount being £700,000 ; and, although the ameaat maximum of £840,000 was reduced before the balance-sheet of the colony was made up on the 31st of March, for presentation to the House in the session of 1888, even at that date there were threequarters of a million of deficiency bills estaat-vrith the-aamo-of-the-Tfeasayer-ef—fehe-eeleay—attaehed-te the» in circulation. Aad-te-iadieate-the-reasea The reason why these bills were floated they woro Seated was to buy minted gold. To pat be accumulated into the coffers GeveMaaeat of the colony ? No; to fill the coffers of the Bank of' New Zealand. I ask the Government to meet this ia-Geaaaittee if they can before a Committee, or by any other tribunal they choose to erect. The loan was floated in June, aad4t-wae 1888. As I took occasion to say last session, it was floated at a lees sacrifice of £100,000, aad by reason of the more favourable circumstances in the earlier part of the year, when, if there had been no bungle, it might have been floated. It was floated also, I regret to say, under circumstances of such gross misrepresentation of fact as would, by the rules of any Court of law, —had it been the prospectus of a private company,— have entitled the subscribers to have had their liabilities allotments of scrip set aside. The loan was floated, as I have said, at a direct indirect loss of £100,000, bat-ef at a direct expense, besides, of over £110,000 w-ith-pi-iaeipai,----dieeeaaty-aad-iatesest in discounts and expenses. Aad4a-the-fh , ut year of-its-issae-that-leaa-eeot uo 10 pe¥-eeat ; That loan cost the colony, not reckoning the indirect loss, 10 per cent, the first year. The crisis, so far as the colony was concerned, ivas past, but the crisis in the affairs of the bank continued. The gross proceeds of £1,955,000 went into the Bank of New Zealand, aad now-a-earieas-tbiag iallews though for a time somewhat relieved by the assistance of our loan. And a curious thing occurred. I have referred to the meeting in March, 1888, and to the disclosures which the directors must have known were inevitable aad-whieh—the dirootofs-ef-the-baak-Bftaot bo takea-te-have-kaewa-te fee4aevitafele r bat-ler-eeßie-par'p9se-were-p»stpeaed-as ftff-as-pessifele; but were not revealed. It was considered desirable to strengthen the bank in various ways, one of which was by representing the con-

amount, and an amount which has never to this day been discharged, and, if the Government will appoint a Committee—for which I hope to give some further reasons later on—to inquire into the transactions of the Government with the Bank of New Zealand during the past three years, I take upon myself the onus of proving that what I now say is absolutely correct. Here, then, we have at this double crisis—a crisis with the colony and a crisis with the bank —the chairmain of directors the Attorney-General of the present Ministry, a power in politics, one who had been the Premier of the colony before, and one loho, from his great ability and long experience, was exercised no doubt ontitlod to a great deal of weight in the counsels of the Ministry. What was done ? As I have said, the loan could not be raised : no assistance could be looked for from that source ; but a perfectly abnormal state of finance had-beea 'was created for the emergency, by Authority beiag4akon fos was obtained by the Colonial Treasurer to float upwards of £840,000 of deficiency bills. This was quite an abnormal state of things, the normal amountbeing£7oo,ooo; and, although the maximum of £840,000 was reduced before the balance-sheet of the colony was made up on the 31st March, for presentation to the House in the session of 1888, even at that date there were three-quarters of a million of deficiency bills in circulation. The reason why these bills were floated was to buy minted gold. To be accumulated in the coffers of the colony ? No ; to fill the coffers of the Bank of New Zealand. I ask the Government to meet this charge, if they can, before a Committee, or by before any other tribunal they choose to erect. The loan was floated in June, 1888. As I took occasion to say last session, it was floated at a sacrifice of £100,000, by reason of the more favourable circumstances having been lost in the earlier part of the year, when, if there had been no bungle, it might have been more successfully floated. hav4ag-beon loot It was floated also, I regret to say, under circumstances of such gross misrepresentation of facts as would, by the rules of any Court of law, —had it boon the prespoctuo the case been that of a private company,—have entitled the subscribers to have had their allotments of scrip set aside. The loan was floated, as I have said, at an indirect loss of £100,000, and at a direct expense, besides, of over £110,000 in discounts and expenses. That loan must have cost the colony —aet-seekeaiag-the iadheet4ees —10 per cent, the first year. The gross proceeds, amounting to £1,955,000, went into the Bank of New Zealand. The crisis, so far as the colony was concerned, was past over. But the crisis in the affairs of the bank continued, though for a time somewhat relieved by the assistance of our loan. Aad Then a curious thing occurred. I have referred to the meeting in March, 1888, and to the disclosures which the directors must have known were inevitable, bat It was considered desisafele neces - sary to strengthen the position of the bank in various ways, one of which was by representing the contrary of what w-as must be taken to have been known by some to be coming. I charge the Government with having interfered, through the Agent-General, in London, ia by endeavouring to bolster up the credit of the bank and deceive the public. If the Government will not give the Committee I suggest, let-theav-ha¥e I ask them to let any man they choose to name, not connected with themselves, —-the honourable member for Lincoln or the honourable member for Waipa,—to go