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 and that the people of the colony would take those debentures up and pay the interest, feeling that they would be quite safe in having the security of the colony. That course seemed to him better than going to the extreme length of establishing a State-bank. He was in favour of the State issuing debentures in the colony at 5 per cent., and waiting to see what the result would be. He pointed out that if a State-bank was established in New Zealand it would have the goldfields as a field for its operations. In making this proposal, he was still thinking of the miners, who would get an increased price for their gold. Gold in most places in the South Island was worth £4 3s. 9d. or £4 4s. an ounce. The miners received from the associated banks only £3 16s. “That is why I support a State-bank,” he said in explanation.

It is not likely that the agitation for a complete State-bank will cease. The supporters of the movement, who are fairly strong in the colony, believe that they can see the goal before them. They use the history of the Bank of New Zealand as an argument. They say that their next step will be to make that bank the sole issuer of notes, a privilege which is possessed by the Bank of France and other large banking institutions. At present, the Government cannot purchase shares in the Bank of New Zealand except by appropriation. There is no machinery for the purchase of the bank at present, and they will try to induce Parliament to supply this machinery.