The Ashburton Guardian. Magna est Veritas et Prævalebit MONDAY, OCTOBER 28. 1889. THE BANK OP NEW ZEALAND.

Ashburton Guardian, Volume VII, Issue 2265, 28 October 1889, Page 2

The Ashburton Guardian. Magna est Veritas et Prævalebit MONDAY, OCTOBER 28. 1889. THE BANK OP NEW ZEALAND.

The report presented at the annual meeting of the Bank of New Zealand may ba accepted (Mr Buckley's remarks notwithstanding) as of a fairly satisfactory nature. True the dividend declared is m contrast to those of the halcyon days when 10 per cent and 5 per cent bonus were the rule, but there is at least good reason to believe that the 7 per cent has been fairly earned, and that is more than can be said of the high dividends and bonuses of the past. Indeed, had the ' directors and shareholders m years gone by contented themselves with tha splendid return of 10 per cent, and instead of paying bonuses carried the surplus to the reserve fund, the institution would never have got into troubled water. High interest to borrowers always means high rs'ik to lenders, and we contend that as a rule abnormally high dividends m the case of finance agencies and money corporatiens generally mean the same thing to shareholders. A well and safely earned 7 per cent is a good enough return for a banking corporation, and argues soundness as compared with the payment of dividends far larger than good investments usually command, As to Mr Buckley's violent attack, its force is altogether discounted by the fact that that same gentleman was one of the shareholders' Committee of Investigation who, only a short time ago, after a thorough enquiry, declared the Bank to be; perfectly strand, and expressed their confident belief m its future if certain recommendations were carried out. Those recommendations were carried oat, and now, m possession of no new facts, Mr Buckley bursts out m denunciation, and practically sets at nought his own previously given report Meantime he has sold out nearly all his shares, and it really looks as if he had now a bias against the Bank. Mr Murray, the late general manager, indeed pointed out that Mr Buckley, as a member of the shareholders' Committee, was fully informed on all matters pertaining to the Bank's affairs, and knows nothing more of the Bank's position now than when he signed the report of the Investigation Committee, He (Mr Murray; also went on to show that with the revival of prosperity m New Zealand there is good reason to believe that the properties enumerated m the Bank's accounts will realise the values at which they are set down. 3he views of Mr Murray are evidently those of the shareholders also, for we find that nearly all the speakers condemned Mr Buckley's remarks, and that a resolution was agreed to accepting the information given by the Board of Directors. Under all the circumstances, therefore, we believe that the public generally will endorse the shareholders' view of the case, and that confidence m the Bank will remain unshaken.