THE BANK OF NEW ZEALAND.

Dominion, Volume 4, Issue 1166, 17 June 1911, Page 3

THE BANK OF NEW ZEALAND.

THE JUBILEE YEAR. ANNUAL MEETING. CONGRATULATIONS ALL ROUND. DIVIDEND OF 15 PER CENT. The annual meeting of tho Bank of New Zealand was held at the head office, Lambton Quay, yesterday morning, air. H. Bcauohanip (chairman of directors) presided, and was supported by Messrs. Martin Kennedy, W. 11. Quick, anil William Milne (directors), W. Callender (general manager), and B. M. Litchfield (chief auditor). There were also 21 shareholders present. The chairman apologised for the absence of ono of tho directors, Mr. J. B. lioid, who had been detained in the South Island on important business. THE CHAIRMAN'S SPEECH. EETKOSPECT AND PROSPECT. In moving the adoption of the report and balance-sheet (which have already been published), the chairman said: As you aro aware, this is the jubilee year of the bank, and it gives me very great pleasure indeed to preside on such an auspicious occasion, more especially as the report and balance-sheet submitted to you disclose so satisfactory a position. Following my usual practice, I will first review briefly the figures of the balancesheet that has been distributed among you. The paid-up capital of the bank remains unchanged at ,£2,000,000. Reserve Fund. In my speech last June, you may remember I expressed the hopo that the bank would this year be in a position to show its reserve fund and undivided profits at not less than ,£1,000,000. I am pleased to announce to-day that our reservo fund, after taking credit for an appropriation of ,£200,000, which the directors propose to make from the profits at March 31 last, will stand at .£1,000,000. The following table showing tho rapid growth of tliis fund sinco I'JOO may bo of interest to you:— '• At.March 31, 100G 81,204 1907 250,000 1008 450,000 1909 050,000 into 6,10,000 1911 1,000,000 You will observe, from the balance-sheet that .£500,000 of the reserve fund is nowinvested in British Government securities. Notes in circulation stand at .£977,246 —an increase of .£57,917 as compared with 'Deposit's aro more by ,£3,199,060 than at March. 1910. This increase is due in a great measure to larger Government balances, but ordinary deposits, both free and fixed, also show a considerable and satisfactory expansion. Bills payable and other liabilities snow an increase of £292.503, mainly m bills payable, which are always an uncertain ami varying quautity. Assets. Turning to the assets side: As compared with the previous year, money at short call, Government and other securities in Loudon together show an increase ot £2,818,595, and now .stand at £G,ilU,-.U. Coin and cash balances are more by .£101,515 than at March, 1910, tho item now standing at .£3,248,290. Bullion also shows an increase of ,£7514. In view of tho considerable expansion in deposits to which I havo already referred, a corresponding increase in cash assets is, of course, to bo looked for. The figures show that tho bank is maintaining a strong position. . I may add that the totals under this head, together with the amount of bills receivable and investmeus in tho colonics, aro equal to G7J per cent (or 13s. fid. in the £) of the total liabilities of the bank to the public. Bills receivable in London and in transit, aro less by £331,930 than at March. 31, 1910.. To a shrinkago in the exports from ' the Dominion the lesser amount under this heading may be attributed. Investments in the colonies stand at 1,338,010—an increase of £103,205 on last <-ar'a total, representing the extent of ' ir further purchases of debentures of ■cal bodies, some of which are held only ernporarily pending realisation. 1 Advances. Bills discounted and other advances show increases of .£77,177 and £912,367 respectively on the previous year's figures, the natural result of renewed activity generally. Bearing in mind the keen competition for good advance business that has now existed for a considerable period, the expansion in our advances must bo regarded as very satisfactory, and indicates that we are getting a fair share of the suitable business offering. It is hardly necessary for' me to repeat that this very important branch of the bank's business continues to receive our greatest care and attention. Assets Realisation Board Assets. The following table shows a steady and satisfactory reduction in these assets for tho year -.— March 31, March 31, 1910. 1911. £ £ Balances owing by purchasers 280,809 178,510 Other assets unrealised 1G.391 37.513 Wo are continuing our efforts to dispose of the unrealised properties as speedily as wo can, without' unduly sacrificing them. Property and Premises. Landed property and premises stand at £423,739, an increase of £63,949 on the previous year's figures. This somewhat large increase is mainly due to the acquisition of our new premises in Collins •Street, Melbourne, to which I referred last year, and also to the purchase of a central site in Sydney, which will .enable the bonk to erect suitable preI miscs of its own in that city. The opening of several new branches and agencies, and tho necessity for the better equipment of cur premises at other points in the Dominion, has entailed considerable expenditure in building operations during the year. Profit and Loss, The net profits for the year, after" paying the £40,000 interest on guaranteed stock and making all necessary appropriations, including provision for the bank's annual grant to the provident fund and bonus to the staff, as well as allocating the sum of £20,000 in reduction of bank premises and furniture accounts, amount to £295,270. Adding tho amount brought forward from last year (£61,134) and deducting the amount of interim dividend of (i per cent on preference and ordinary shares paid in December (£'00.000), the sum available for distribution is £209,405 —as against £270,381 last year.. The directors now propose to pay a further dividend of (i per cent and bonus of 3 per cent on ordinary shares (making 13 per cent for the year), and a further I per cent on preference shares (making 10 per cent for the year). The total amount distributed to shareholders for the vcar will therefore be £125,000. Of the balance remaining, it is proposed to transfer, as already mentioned, £200,000 to the reserve fund and to cany forward £34,105. The result of the year's working, and the increased dividend now proposed will, I feel sure, be regarded by shareholders as highly satisfactory. Mr. Bcauchamp went on to make some important statements (reported in another column) upon the commercial and financial outlook, and then dealt with the bank's history. He said:— The Bank's Jubilee. This being- the fiftieth year of the. bank's existence, it will probably be considered appropriate-that 1 should briefly review tho histon- of the institution. Exactly fifty years' a go this month, namely, on June 7, IS6I. a nie?Hng of leading -F-olonists was held ill the office of the New

Zealand Insurance Company, Queen .Street, Auckland, to consider the project of establishing a bank under the stvlu of Ilia "Bank of Now Zealand." The New Zealand Insurance Cumpanv bail then only hileiy been formed, and the success which had attended its ojierutions hail apparently directed I lie attention of tho colonists to Hie advisubleness 0 f establishing a bank, which should be in fact a New Zealand institution. At Hie meeting in question a committee—of whom Sir John Logan Campbell, of .Auckland, is now the only surviving representative— was appointed to draw up the prospectus and outline tho constitution of the proposed bank. The considerations underlying the movement appear by the prospectus to have been the desirableness of having a locally-managed institution, the profits of which would be retained largely in tho colony itself, and the management of which, being closely identified Willi the colony, would be more likely to foster tho interests of the country than would the foreign banking institutions upon which, up to that, time, -the financial business of the colony had depended. The prospectus goes on to say:— "It is therefore proposed to establish on a broad and permanent basis a banking in.-titution c-apabie of doing the present banking business of New Zealand and susceptible of expansion with a view to meeting the requirements of that prosperous future which ii is believed will certainly and shortly be realised for Xcw Zealand.

"It will bo the object of the bank In render all posMble accommodation and facilities, consi=te-it with its proper functions, to the merchant, settler, storekeeper and farmer."

The capital suggested was £.100,01)0, in 50,000 shares of £10 each, half of which 1 was lo be called up. The proposal was | well received throughout the colony. Subscriptions came in freely, and tho success of the project was.speedily assured. The first nicotine of proprietors was held on October 1. ISGI, when directors and auditors were anpoinled and arrangements made to open (he banking house in Auckland on the lGth idem. The Crisis, From the commencement thus auspiciously made, the bank moved forward through a period of considerable prosperity, and paid for many years a dividend at a very satisfactory ratt. The risks and perils attending the business of bankin:; in new undeveloped country having only a limited and uncertain market for the* products of its industries presently, however, materialised, and for many years the bank worked in the face of adverse conditions which eventually brought it to the verge of* dissolution. The circumstances of the strained situation, which ■became apparent on the passing of the dividend in ISS7. and which was the commencement of the series of misfortunes that culminated in (he loss of the whole of the capital and reserves and one-third of the reserve liability,-are too well known and too painfully impressed unon many of you to need repetition. T will not dwell upon this gloomy period of the bank's history. Suffice it to sav that by the statesmanlike assistance afforded in 1804 by the Government of the day (of which the late Pit. Hon. E. J. Seddon was Premier, and the present Prime MiniVer ,-the Ut. Hon. Sir J. G. Ward-the Colonial Treasurer) in guaranteeing for the bank a substantial amount of capital, the opportunity was aflorded the bank In nurse its nnliqnid ass?ts until they could be advantageously realised. Difficulties Overcome. Ke-constitutcd by legislative authority upon a basis which afforded good prospects of its eventually vvorking out of its difficulties, and aided by the acquisition of the business of the Colonial Bank, the bank then commenced by slow degrees to rcirieve its fortunes, favoured .with a succession of years of general prosperity in the colony, its advancement, though slow at first, eventually developed into a career of rapid progress 'which has culminated in tho splendid position in which the bank stands to-day. For a few years, no dividend was possible. Then 5 per cent was paid as at March 31, 1902, and continued until March 31, 190G, inclusive. It was then found that the surplus profits paid over by the bank to the Assets Realisation Board (aggregating to that date £1,2)7,699) had, combined with the results of working and the proceeds of property realisations, effected equalibrium in that board's position. Under tho authority of the statute, this enabled tho Assets Realisation Board to be dissolved. Its remaining properties, valued in tho books at £401,047, were then handed over to tho bank, and tho board's debentures held by the bank were surrendered and cancelled. The limitation of dividend imposed by the statute thereupon ceased to be operative, and an increase in the rate' of distribution became possible. Dividends of 10 per cent on ordinary shares and 7} per cent on preference shares were paid as at March 31, 1907. For the year ended March 31, 1909, a bonus of 2;V per cent additional was paid, making 12J per cent to ordinary shares and 9J per cent to preference shares. On the present occasion—our jubilee year—the distribution, if you adopt our report, will be 15 per cent to ordinary shares and 10 per centto preference shares.

How the Profits Were Used. Since the rearrangement of 1595, the bank's profits have been as follow:— £ At March 31 189fi 132J93 1597 130,891 1898 172,400 ■ 1899 191,420 IftOO 242,520 1901 300.2-12 1902 289,502 1903 290,590 1904 292,803 1905 320.908 190G 330,330 1907 350.850 1908 369,923 1009 368,130 1910 314,380 1911 355,270 This large sum has been utilised principally as follows:— In payment of interest on guaranteed stock 1,019,005 In payment' of dividend— On preference shares-held by , Government; 31G.152 On ordinary shares 411,415 Payment to .-\.K. Board in reduction of deficiencies .on assets _ 1,2-17,099 Payments in augmentation of reserve fund 918,705 Amounts written off— B.X.Z. Estates Co., Ltd., assets in liquidation 139,988 B.N.Z Estates Co., Ltd., Debenture conversion account 58,313 Bank premises and furniture -207,808 Colonial Bank purchase, goodwill 75,000 "Ground for Much Satisfaction." The capital of the bank, as fixed by legislation passed in 1903, is bow as follows :— £ Capital stock (guaranteed by the N.Z. Government) 1,000,000 75,000 preference shares at £6 13s. Id. each, issued to the N.Z. Government 500,000 150,000 ordinary shares at £6 13s. •id. each, issued to ordinary shareholders 1,000,000 (The second call of £3 Gs. Bd. per share made in IS9O was treated as a first instalment of the £6 13s. -Id.) The residue of the Assets Realisation Board properties now stands at £37,813 only, and the value of the assets representing the amount affords an ample margin. In view of the great difficulties and serious reverses through which the bank has passed, tho position in which it now stands is little short of surprising, and must afford shareholders in this jubilee year ground for much satisfaction. With practically nothing now on our books of a dead or unproductive nature, the bank's resources are, to the fullest possible extent consistent with safety and stability, revenue producing; and in ordinary circumstances- there is nothing to interfere with its continued progress and prosperity. Attached t'o the report and balancesheet will be found a schedule giving figures taken from the various balancesheets from the commencement to March 31 last, with the object of showing the bank's gradual development from its earliest days to the present time. The information it contains will no doubt bo of iniej-pst to you. Directors, There has been no change in the personnel of the board sines last we met, M«;rs. W. H. Quick and J. B, Keid were.

re-nppoinlcd directors of iho bank by the Government lor a further term of two years as from April 1 ultimo. One. of the shareholders' representatives, Mr. 'William Watson, is at present in Knjjlaml. having k'l'l tlid Dominion in April, lie is expected (o return hither about the end of the year. JJurhift his sojourn in London he 'will be associated with our hoard in that city, and, in view of his lout; and varied experience as a banker in this and in other countries, 1 am sore he and I lie member of i hat board will derive considerable benefit by an interchange of ideas on finance ami other matters. It is my pleasing duty to n:,'.ain express our keen appreciation of the great earo and attention devoted to the hank's interests bv the London Board of Directors,

It is gratifying to testify once more to Ihe loyal and efficient manner in which our start', in New Zealand, Australia, Fiji, and London, have carried out their responsible duties. Ton will. T know, endorse these remarks by according to them a hearty vole of thanks. To mark this our jubilee year in a practical manner, the board has already paid the staff n bonus of 10 per cent, on their salaries for tho year ended March 31. Recognising the importance of attracting to the service well-educated and desirable youths, the board Ims recently revised the salaries payable to junior officers. Under (he new scale, nn officer of fair average, ability, industrious, and ambitious, can rapidly improve his stains. Whilst dealing wilh this miostion. wo have not been unmindful of the claims of our senior officers, and have rewarded special merit wherever it has been shown. With some knowledge of the subject on which f am speaking, I have no hesitation in affirming that our service to-day is one of the most attractive-in Australasia.

In conclusion, I desire to thank you for the patient manner in which you have listened to my remarks to-day". They are admittedly longer than usual, but. iii view of the nature of the occasion, will, I hope, not bo regarded as unduly pre-

I now formally beg to move the adoption of tlie report and bilanoo-slicet. If flie report be adopted. (lie dividend and bonus proposed—namely, i ner cent on preference shares, making 10 per cent, for tlie year, and 9 per cent, on ordinary shares, equal to 15 per cent, for (lie same period-will bo payable in AVolliii"on on Monday, 10th instant, and at branches on receipt of advice. (\n. plauso.) v ' VIEWS OF MR. M. KENNEDY. SPLENDID PROSPERITY. , Mr. Martin Kennedy said: "I havo "great pleasure in seconding your resolution for the adoption of tlie report and balancesheet and as that report deals so fullv with tho aftairs of the bank, past ami present, little remains for me to add. However, this being the year of (ho bank's jubilee, 1 take the opportunity of expressing my own gratification and (hat, I believe, of the shareholders generally, on the splendid prosperity of tho bank and the success attending the dual proprietorship and Government control. The very great service rendered to tho bank in its time of need by (he Government has a ways been gratefully acknowledged by all directors and shareholders since the event. And, gentlemen, I feel sure that 1 voice the sentiment of shareholders generally when I say that feeling is no wav lessened by the knowledge that the second investment of half a million in the capital of the bank by the Government in 1904 has proved so successful, already yielding a profit over and above i per cent, of £30,000 yearly. Notwithstanding this splendid result, we find individuals expressing regret, through the public press, that the Government, instead of guaranteeing, did not make it wholly a State bank. It is now seventeen years since the crisis, and although expressions of dissent at the time were many against the Government taking a half-iiitcrest in tho bank, there was not a single voice raised in favour of making it wholly a State bank. On the contrary, there was general rejoicing when the board of the bank exercised ■ the right—reserved fjo them in the "-Act—of paying back to tho Government its half-million shares within six years, that right being exercised in 1000, one year before the expiry of the limit. ■ Tliis action of tlie board was in. part due to gratitude felt by them to the Government in coming to their rescue, for this capital was preference shares at 3J nor cent, for all time, and othenviso might well have been retained. A Historic Interview. "I recall these facts as a. reminder to those gentlemen who are probably under the impression that the preference shares now held by tho Government were tho original shares taken up in 1894—whereas it was years Wore the second investment of shares took place, viz., in 1901, and when the net profits of the bank had already risen to i! 292,503, and shares were already selling in tho open market at a small premium. Indeed, at the interview between the Cabinet and the bank's board when the bargain ivas made to grant the shares to the Government in consideration of extending tho guarantee for one million of tho two million guaranteed stock on the London market and for the balanco of tho unredeemed Assets realisation Board debentures, .£1,800.000 (originally over two and a half millions), the Right Hon. 31 r. Seddon remarked that shares would advance to X's immediatliy that bargain received Legislative sanction.. That bargain having our Legislature's sanction is surely as sacred an Act as any ever made by our Parliament, and this has been so acknowledged on the floor of tho House of Representatives more than onco by the present Prime Minister, Sir Joseph Ward. I bring forward these incidents, not with the view of minimising tho original great service rendered to tho bank with its timely guarantee, but for the information _ of shareholders and others whose suggestions might induce well-disposed people to believe that Parliament have a legitimate claim for further monetary consideration from tho shareholders for services rendered in taking up their present halfmillion shares. Tho Staff and Directorate. "Before concluding, let me say I concur in what the chairman lias so well said regarding the excellent goodwill in the bank so well preserved by the staff and ex-officers that came to us with the bank in 1891, most of whom, 1 am glad to say, aro with us still, anil to whom wo owe much of the present satisfactory position of the bank. And in that connection, allow mo to repeat what 1 said on a former occasion. Tho gratitudo of the shareholders of 1891 is duo in a special manner to 3li\ John Murray, a former general manager, who,,, though he had retired from active life owing to ill-health, yet, at tho request of the board, undertook tho negotiations with tho Culouial Treasurer, and brought them to so successful an issue—not alono to the, advantage of shareholders, but also to tho whole colonv; for had tho bank closed its doors at the time, it is 'impossible to forecast the injury the colony would havo sustained, as its ramifications were so great that no interest, could havo escaped. "You are aware, gentlemen, that ono of your two representatives has to retire each year. This year it falls to my lot to retire and, reiving on the confidence you have hitherto extended to me during the sixteen vcars I have had the honour of representing you, I beg to intimate that 1 am again a candidate for a renewal of'that confidence." (Applause.) VIEWS OF SHAREHOLDERS. THE DIVIDEND. Mr John 31 ill (Port Chalmers) said tl-it while congratulating Hie board ol directors and the slaff on the good services they had rendered to the bank and to the shareholders during the past year, he would like a little more information on one or two points. "The first,' he continued,'"is: Is it the intention of the directors to pay the Government the indebtedness of the bank to the amount of ,C1,01i0,1100, which we have now in hand, at tlie expiry of the agreement existing between the bank and the Government in the year 1911 '1 If that amount was paid off. 'the bank would then not require to pav the I por cent, which it now pays to tho Government, which would be a con-f-idorablc easing-oti for the bank. In reference to the dividend declared now, of 15 per cent., we, tho shareholders, would remind tlie directors that for many years i we received no return at all, so that it will take a good many 15 per cents to make up for the many years that wo rereived no returns for our investment, and it ia to bo hoped that the. directors will now be able to keep up the same, amount i \. >

of dividend from year to year, if not more. Jinny of tho banks at Homo pay much larger dividends than any of .the banks in the colony, but of course thoy luivo very large reserve funds, and 1 have no "doubt that the directors of tho Hank of New Zealand will do all (hey can to add to the reserve fund from year to year, I ill it gels up to a good round sum, and equal to sonic of tho hanks at Homo, which we look forward to. Jinny of ns shareholders feel sorry to hear from linifc to lime of several of the employees who have taken ndvnnlago of their position anil done what I hey should not have done. We shareholders think Ihis has a tendency to bring down in tho estimation of the shareholders a class of men who are noted for being able and trustworlhy employees of tho bank. Jt must lid painful for them to hear of any of their colleagues coming short in their accounts, Iwciuso we all know that I hero is not a better class of bankers to be found anywhere than in the Hank- of Mew Zealand. It is through their ability and skill that we mo now in tlio proud position of being able to pay off all debts and liability, and even lo pay the Government oil', if need be, according to the balance-sheet placed in our hands, which is most satisfactory." (Applause.) Remuneration of Directors. Mr. T. S. Weston said lie agreed with what had been said as to tho prosperity of the bank. He thought the directors were not paid sufficient for (heir services, and the shareholders ought to do tomething in the mailer. The bank had grown enormously during the last ten years, and tho responsibilities of the directors, hero and in London, were very largo. Ho thought that in this jubilco year something should bo done. He moved as an amendment: "That the sum of .£,IOOO lie appropriated by the board to themselves for their'services during tho past year, ns a bonus, and that the money be allocated among them as they think suitable." Ho felt sure that all the shareholders would agree, to this proposal, and that the meeting would carry it unanimously. The amendment was seconded by Mr. ,T. Mill, who said (he directors were notgetting fair play, when it was considered what the directors of other banks received. Thus tho National Bank paid its. directors .£750 each, and, lo go further afield, the directors of the Aberdeen Hank got ,£IOOO a year. He would like to go oven further than tho motion just moved. The chairman said the proposal could not be accepted, because notice of motion had not been given, and also because it would be ultra vires. The Act provided for the remuneration of the directors, and tliev could'draw'lioHni-thfr emolument than was there authorised unless and until the Act was altered. Jlr. Weston: But this would be by way of bonus. The Chairman: Just so. It is very good of you to make (he proposal. Wo ourselves admit thai, as compared with other banks and big financial institutions, the presort remuneration—-.£51)0 per annum—is inadequate. I daresay that when the Act was framed it was about the amount that was thought to bo'justified in view of the then condition of the bank, but the circumstances have altered, and moreover the responsibilities and the work of the directors are vastlv different. We have in addition (he 'bank's increased earning power. I am sorry wo cannot accept the proposal, but we very highly appreciate the kindly thought which prompted the mover and seconder. (Applause.) The Chairman's Trip Home. Jfr. J. Mill then said ho understood that tho chairman would shortly take a trip Home. Ho would, therefore, movo tho following amendment to tho motion for (lie adoption of the report and bal-ance-sheet -.— That the sum of .toOQ be voted by this mooting to defray the expenses of our worlhv chairman while on a visit to the Olil Countrv, and when there to look after the interest of Die bank, ' ns he has done heretofore. in moving this resolution, Mr. Mill caid it could not be denied that the chairman had given very great attention lo the business of tho,Bank of New .Zealand, and had been the moans of. bringing a considerable amount of business to the institution from time to time through his large exr.erienco in business throughout tho Dominion. He felt sure (he interests of the bank would bo carefully looked after ..by the chairman when at Home, as upon a former occasion when ho brought "much business to (he bank. In passing this vote the shareholders would be doing what was not at all all unusual thing. He remembered when the manager of a largo company in this country, had been granted .£IOOO in tho same way some years ago. Jlr. Weston, in seconding the amendment, said ho did not intend to let the question of the remuneration of directors drop. He would give tho proper notice jyifWo bri'mri"" it up arain. There could bo no objection to paying (ho expenses of the chairman on this (rip., as lie would be on the outlook all the time in (he interests of. the ban!:. Jlr. Weston went on to sneak of the great services rendered by Jlr. Beauchamp to (lie colony at largo as well as to tho bank,.three or four years ago, when a crisis in business affairs was inniendiug. AVhen the (position began to look critical, his action, in the opinion of a number of those who were best qualified to know, was the turning point. Jlr. TC. B. Jackson, of Jlilton, supported the amendment.

Tho chairman said that for the reasons bo had Riven in regard to (lie previous amendment ho was unablo to accept this one. Perhaps tho board would feel inclined to accept a. recommendation, but it would not bo fitting; for him to make any remark whatever on (hq subject. Ho very much appreciated the kind things that had been said about his services (o tho bank.

With flic consent of tho meeting. Mr. Martin Kennedy then took the chair to put Mr. Hill's amendment to the mooting, as a proposal to make a recommendation to the board..

Mr. Kennedy said ho had much pleasure in adding his testimony as to the great services rendered by tho chairman. It doubtless came within the functions of the board to carry out a recommendation made by that meeting. Though, perhaps, it was not for him to say hi, ho considered that (lie remuneration of the directors was wholly inadequate. Even if they were allowed a thousand a year, he would not blush to take it. (Laughter and applause.) Nearly 25 years ago, those who had been his opponents in trade nihil ted him £1000 a year, and he did not think he had deteriorated thereby. The services of the directors of the bank, now and for many years past, were worth £1000 a year. On a show of hands, the motion was carried unanimously. Mr. Beauohamp: "I thank you very sincerely for this very, very kind mark of your appreciation." DISCUSSION REPLIED TO. CHAIRMAN'S FURTHER REMARKS. Resuming tho chair, Mr. Beauchamp said in reply , l o a question by Mr. Mill, that there were now current !E1,000,00d worth of debentures issued by-the: bank, and bearing the Government' rjunranccc. They would mature in 101-i, and they bore ■1 per cent, interest. Before the expiry of the term, the board would doubtless consider what was the best course to pursue in regard to redemption. They were reckoned as part, of the capital of I he bank, and (his brought: tho capital up 'o £2,000,000. lie saw no reason why <h,t 1.") per cent, dividend (o (ho shareholders and the 1(1 per cent, to the Government on its preference shares should not be continued. 'The Goveriinmil; coul4 get n:i return beyond that. In regard lo (he staff, it might interest shareholders ui know I hat the officers employed to-day numbered Sa2, and (heir total salaries were .(J1G0.078. Nino officers resigned or woro dismissed during the year for irregularities, namely, seven dismissed and two resigned. The total amount of these irregularities was under .C2OO, but no loss resulted to the bank, as it was all covered by tho guarantee funds. Tho percentage of the sum involved in these irregularities to (he total of the salaries was .0012). He thought they could only just, appreciate that by gelling a powerful microscope, i The report and balance-sheet wero then unanimously adopted. THANKS, AND A LITTLE DIFFERENCE. Mr. Weston moved a. hearty voto of thanks to tho chairman, the directors, tho general manager, and the staff. Tho bank

had been extremely lucky in tho men associated with it, and tho shareholders woo only too willing to cmlor.sG what the directors had done, in (lift way of improving tho position of the staff. Much, had been said about the reasons for I he magnificent progress of tho Bank, but (hey should remember that all that the staff had dono, all (lie Govei'iiuifiiit had done, and all that tho directors and tho shareholders themselves had done would have boon of no avail without (he magnificent loyalty which the people, of \<;w Zealand had shown towards tho Dank. Jl ought to ho more than « pleasure to reflect that by strengthening their reserves they would ho nblo to repay the public for *!io benefits (hey had conferred upon the Hank. The advantage of having 11 strong Bank with good reserves in a young country was very yieaU as it meant that those cntorprhes whfcli required and deserved Blipport would receive it.

The molimi was seconded by Dr. C. P. Knight, .ind carried unanimously. Thn chairman, in acknowledging (hn compliment on behalf of those associated with him, remarked that (ho present year, besides being (he Bank's jubilee year, was his own, as he arrived in New Zealand—was brought here, in fact, at a tender age—in 1861. It was gratifying to haw at that mooting two gentlemen— Messrs. Freeman and' Cutlby—who hod ■ been shareholders from the beginning and had borne tho heat and burden of tho day. (Applause.) Directors Differ. Jlr. JI. Kennedy also acknowledged tho vote of thanks. Ho mentioned that lie> also arrived in New Zealand in ISGI, but, unlike the chairman, he came of his own accord. If he continued to he a member of the board, ho would advocate tho paving off of tho .£1,000,000 worth of Government guaranteed debentures when they matured in 1011. It could not bo said, thai I hey would not (hen liaro enough capital in the Bank. At ono period tlio Bank had only half n million capital for four years, arid (hey carried on with (lie, shareholders' money only and no deposits. If the debentures wero paid'oil', as he suggested, in 1911, the Bank would' have, not only a million pounds of 'capital, but a million and a half of reserve funds. Tile chairman said ho must correct part of what-Jlr. Kennedy had said, l'rior to tho Bank applying to the Government for a continuance of the guarantee in respect of the 4 per cent, stock issued by tlio Bank, the paid-up capital of tho Bank was regarded as ,£2,500,000, made up ns follows:—Shareholders' capital, .£500,000; I per cent, stock guaranteed by the Government, .£2,000,000, When (he Government agreed to continue its guarantee in regard to tho .£1,000,000 of I per cent, guaranteed stock (it being arranged that the other .£1,000,000 should bo paid off by (he Bank) the Government stipulated for an issue of .£500,000 worth of preference (.hares. Today, therefore, the capital of tho Bank stood thus.—Shareholders' capilnl, X 500,. (100; preference shares held by the Crown, •tSOO.dIH); i per cent, guaranteed stock, ill.01)0,(100; total, .£2,000,000. Jlr. Kenuedv said it was clear to him (hat in 1001 (lie Bank had only .C500.00C capital over and above its obligations to all its creditors. The chairman remarked that as it was all on record in (he books of (ho Bank, lie would say no more about it. Jlr. Cullender, general manager, on behalf of tho staff, acknowledged the vote of thanks. Tho meeting (hen concluded.