✨ Dispute over Sale of Canterbury Loan Debentures
A further argument that the Bank lost the advantage "through no inability on its part to reap it" is scarcely consistent with terms of the agreement which, as stated above, at no time admitted of an uncontrolled agency on the part of the Bank.
With regard to the first and second arguments adduced, it is to be observed that the Bank has received commission on £111,000 of the Debentures, sold prior to the withdrawal of the Bonds from sale—that is £1110; and that the Superintendent has intimated the willingness of the Government to consider any claim for such further sum as will give the Bank a fair remuneration for its agency and trouble in placing the Debentures actually sold by it; and it is further noteworthy with regard to Mr. Coster’s statement, that the commission is "exceptionally small," that judging from a letter by the Crown Agents to Mr. Fitzherbert, of April 24, 1868, one per cent was the charge paid by the Colonial Government to the Bank of New Zealand for a similar service, and was the amount charged for placing Loans on market by the Bank of New South Wales and the Consolidated Bank; while the charges by the Crown agents on Colonial Loans, as authorised by the Imperial Government (see appendix to Journal of House of Representatives, 1868, Book No. 3, page 10) are:—
"For negotiating new Loans ¼ per cent. commission, and ¼ per cent. brokerage."
With regard to the third argument, viz., that in making the agreement for the conduct of the banking business of the Province the Bank took into account the profit to be made on the sale of these Debentures. There is no allusion to any such understanding on the part of the Government in any of the correspondence relating to the agreement.
Canterbury Provincial Gazette 1871, No 30
✨ LLM interpretation of page content
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Dispute over Sale of Canterbury Loan Debentures
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💰 Finance & RevenueDebentures, Sale, Canterbury Loan, Bank of New Zealand, Dispute
- Coster (Mr), Mentioned in statement regarding commission
- Crown Agents
- Mr. Fitzherbert