THE BANK OF NEW ZEALAND

Bay of Plenty Beacon, Volume 1, Issue 27, 21 June 1939, Page 4

THE BANK OF NEW ZEALAND

AS the largest trading bank in the: Dominion, the Bank of New Zealand's annual report and balance sheet is always of importance as an indicator of the country's financial position. At the annual meeting of the proprietors held at Wellington, the chairman of directors, Mr A. T. Donnelly, issued a report which sets out the position in an able manner. That the Bank is paying &n interim dividend of 5 per cent making 10 per cent for the years trading, shows that the soundness of the institution is solid despite jthe: somewhat unsettled condition of the country s affairs at present The repott discloses that the deposits of £33,328,478 are less by £1,403,054 than the figures for the previous year, and that though the free deposits are somewhat higer, fixed deposits show a further decrease. Dealing with overseas funds the report shows flaking the period from March 1934-35, these funds fell from £45.2 millions to £9.3 a total 1 fall of approximately £36 millions. The main items affecting New Zealand's overseas funds for whvh official Statistics can be obtained are: Exports and imports, interest on public and local authorities' debts and public a,nd local authorities' debt movements. After these accountable items have been tabulated, there remains a balance which is attributable to the repatriation of funds temporarily domiciled in New Zealand the investment of New Zealand funds in overseas securities, and those funds for butter and cheese which aje not now credited until the produce has been sold (Year Book 1939, page 883). The value of the Dominions total external trade for the year ended 31st March last in New Zealand currency is disclosed at £112,275,000, a reduction of £10,797,000 on the figures of the previous year. Exports were less by 11 per cent, mainly due to lower prices, but also to a reduced quantity. Imports were 6.3 per cent lower in value than the previous year. Dealing with butter prices, the report considers that there will be a substantial deficit at the close of this year's operations, but' against that there will be placed, as a set off the estimated surplus of £555,000 for the 1937-38 season. Although the average price returns for wool this season were lower than for those 1 of the previous season an, additional export of 92,167 bales accounts for the increase in this season's income. This increase is no doubt due to the realisation of wooU carried over from the previous season, together with an increased' weight of wool shorn per sheep. The report concludes by giving some details of the relationship existing between the Bank and the Government and points out that it is the duty of the Bank to help the Government as much as it can. The final note is most reassuring. The chairman states: "The Bank's capital, and your capital as shareholders, and the moneys of depositors are as safe as they have ever been in the history of the Bank."