A STRONG RESOLUTION. Bank surprises have been the order of the day for some time. The surprise which we chronicle to-day is a surprise only because people have been led to believe what they ought not to have believed. The fifth section of the Bank of New Zea land Share Guarantee Act of last session is very explicit. It provides that "it shall be incumbent upon the directors if the Colonial Treasurer shall in writing require them to do so, and they are hereby empowered, to call up one third of the sum of ten pounds per share for which the shareholders are liable under the aforesaid section twenty-one, within twelve months from the date of such re quirement.” The section referred to deals with the liability of the ordinary shares. When the Bank Bill was introduced it contained provision for this call of one third of the reserve liability, but the provision was altered as above, before the Bill became law. Since then the President and the auditor of the Bank went carefully into the accounts and noti fied the Colonial Treasurer that in the interest of the Bank the making of the call is necessary. The Treasurer thereupon notified the directors in terms of the fifth section above quoted, and the directors, who had made themselves conversant with the state of affairs, acquiesced. The result is the circular to the shareholders making the call of one-third, viz., ,£3 6s 8d per share. The Act permits them to spread the collection over a period of twelve months, and they have availed themselves of the permission. We regret the neces sity, but we cannot doubt the necessity. The continuance of the low prices of pro duce makes it necessary that the resources of the Bank ? should be strengthened. The recognition of the fact justi fies the > appointments of the Presi dent and the auditor. Bankers of experience and ability and upright char acter, they have come to the conclusion that the bull must be taken by the* horns. The Colonial Treasurer had, of course, no course open to him but to act on their re-

commendation. The directors are men of the highest business attainments. In acquiescing in the course determined upon, they have done a thing unpre cedented in banking history. 