✨ Financial Dispute Continuation
ever come back to the Colony. It was drawn on the Managing Director in London. The funds to meet it were to be provided by sale of the Debentures to be made by the Bank in London, and power was given to the London Manager, in case it should not be met, to sell Debentures sufficient to cover it. When it matured, the Government had funds at its credit with the London office sufficient to meet it, and the London office charged the Government account with it.*
It seems open to question whether the Bank could properly revive on the 24th March a Draft which had been written off in the drawer’s account on the 29th February as a retired Bill. The Draft was or should have been cancelled when it was debited to the drawer’s account. The Government might subsequently have become indebted to the Bank on overdraft or otherwise, but not on the Bill as such. But so far as the London office is concerned, the Government account was at no time overdrawn, and on the 24th March, when the entry was made which purports to revive the Bill, the Bank held as has been already shown £190,000, which had been paid in to the credit of the Government four days previously. This sum is not included in the London office statement of account, dated March 27.
- London Office statement of account, 27th March, 1868.
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Canterbury Provincial Gazette 1871, No 30
✨ LLM interpretation of page content
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Claim by Provincial Government Against Bank of New Zealand
(continued from previous page)
💰 Finance & RevenueFinancial Dispute, Bank of New Zealand, Provincial Government, Interest Charges, Bill Negotiation, London Payment