THE MAORI BANK

AT CAMBRIDGE

During the massive and destressing land sales conducted at Cambridge in the early 1880's, the Maori people conducted their own bank, with unfortunate results which show a vivid light on the times.



J.H. ALEXANDER

Around 1880, large sums of money were paid out at the Cambridge sittings of the Maori Land Court to owners of Maori land who had sold their interests to the Government. The money was generally deposited in the two local Banks, and if not placed upon fixed deposit, no interest was payable.

The Maoris reasoned that there must be some profit to the Europeans, otherwise they would not keep Banks, and as it was accordingly represented at a meeting that as the Europeans were making a profit by keeping the Maoris' money, there was no reason why the Maoris should not be their own Bankers and enjoy the profit themselves. A Bank to a Maori of those days was a place where money was kept for safety, to be available to the owner when required. In their Bank there were to be no advances, no overdrafts: everything would go in; nothing would go out. A Board of Directors was appointed, mostly well-known Chiefs selected from various tribes. Two half-castes who had had an English education were selected as book-keepers. The Prospectus was in Maori, a translation being as follows:—

“The Maungatautari Money House.

“Board of Directors (eight names were listed)

“Whereas it has come to the knowledge of the aforegoing Chiefs that the people of the various tribes mentioned herein (six were mentioned) have been in the habit of trading with certain Europeans:

“And whereas the Maori people so banking have been viciously wronged in their dealings with these Europeans, who have largely profited thereby.

“And whereas our hearts are sorely grieved at this robbery of our people:

“Be it known, therefore, that we, the Chiefs of the tribes aforementioned, in Council assembled, have decided to start a Bank for the benefit of the Maori People.

1. “The Rules upon which the Bank will be conducted are—The right to share in the privileges of the Maungatautari Bank is confined to the people of the Maori race. 2. No deposit will be accepted for a shorter term than six months. 3. The rates of interest to be paid on deposits are:—On all sums under £20, 5 per cent; over £20 and less than £50, 10 per cent; over £50 and less than £100, 15 per cent; over £100, 20 per cent. 4. The Bank will be open to receive deposits on Mondays, Wednesdays and Saturdays between the hours of 10 a.m. and 4 p.m.”

The premises consisted of a large raupu whare divided into three compartments—office, “strong” room, and sleeping compartment. The clerks and some of the directors ate and slept on the premises. The treasure, some hundreds of pounds, was securely locked away in candle boxes in the strong-room.

J. F. Edgar, formerly a Maori Land Court Judge, who supplied the aforegoing information, continued as follows:—

The confidence of the Bank was almost universal. Every Maori who had a pound which he could not otherwise dispose of put it in the Bank that it might grow. True, there were a few who after a few days began to entertain misgivings and demanded their money back, but the directors were obdurate; the rules could not be broken. Some weeks after the Bank commenced business it became apparent that two or three of the directors had unlimited resources at their disposal. One became the owner of a buggy and