BANK OF NEW ZEALAND.

Dunstan Times, Issue 943, 14 May 1880, Page 3

BANK OF NEW ZEALAND.

The Ordinary Half yearly Meeting of the Shareholders was hell on the 22nd April, 1880, the Hon. James Williamson (President) in the chair. The General Manager (Mr D. L. Murdoch) read the advertisement convening the meeting, also the Half-yearly Report and Balance Sheet as follows : Thirty-seventh report of the Directors of the Bank of New Zealand to the Halfyearly General Meeting of the Proprietors, held at the Banking-house, Auckland, on Thursday, 22-d April, 1830. The Directors have the satisfaction of submitting the following result of the past half-year’s operations The not profit to 31st March, after fully providing for - all had or doubtful dependencies, and tor the usual reductions in Batik premises and furniture accounts, amounts to ...,£74,101 17 4 To which has to he addc l — obtained on sale of balance of new shares 17,103 0 0 Balance from half year ended 30tk September, 1870 5,800 G 5 Making a total available fur division of ... 07.185 3 9 Which it is now recommended be appropriated as follows : To payment of dividend at the rate of 10 percent. per annum ... £50,000 0 0 To bonus of 5s per share, equal to 5 per cent, per annum ... 25,000 0 0 To balance carried to profit arid loss now account ... 22,185 0 9 The dividend and bonus will he payable at Head Office, Auckland, on Saturday, the 24th April, and at branches on receipt of advice. For the Board of Directors, James Williamson', President.

Aggregate Balance sheet of the Bank of New Zealand, At the 31st March, ISSO, including London dike at 31st January, 1830. Dr liabilities. £ s. d. Capital ... ... 1,000.000 0 0 Reserve Fund ... , . 550,000 0 0 Notes in circulation .. 497,301 0 0 Bills payable in circulation 1,337,-131 0 1 Deposits and other liabilities ... ... 7,029.811 9 9 Balance of profit and loss. 97,185 3 9 £11,110,808 19 7 Cr ASSETS. £ s. d. Coin and cash balances at Bankers .. . . 2,114,007 0 0 Money on short calls in London ... 875,456 0 0 Bullion on hand and in transitu ... ... 110,548 15 4 Government securities ... 282,532 10 0 Bills receivable and securities in London ... 1,081,433 9 7 Bills discounted and other debts duo to the Bank 0,434,979 11 2 Landed property, Bank premises, &c ... 188,191 13 C £11,110,803 10 7 PROFIT AND LOSS ACCOUNT. Dr £ S. d. To dividend on 100,909 shares of £lO each, at the rate of 10 per cent, per annum 59,000 0 0 To bonus at rate of 5s per share, equal to 5 per rent, per annum ... 25,000 0 0 To balance carried to profit and loss “ new account ” 22,185 3 0 £97,185 3 9 Cr _ £ a. d. To balance from half-year ended 39th September, 1879 ... ... 5,890 G 5 By premium on balance of new shares sold .. 17,193 0 0 By net profit for half-year ended 31st March, iSSO 74,101 17 4 £97,185 3 9 Dr £ s d. To balance Reserve Fund.. 555,000 0 0 £555,000 0 0 1 Cr £ s. cl. 1 By balance from half-year ended 30th September, 1879 555,000 0 0 £535,001 0 0

Wo hereby certify that wo have examined tho accounts of tho Hank of New Zealand for the half-year ending 31st March, 1880, and that wo have counted the cash balances and examined the h'lls and other securities held at the Head office, and compared the returns of tho branches with the foregoing balances and have found the same to be correct.

(Signed) Joseph L. Wilson', ) . Allan K. Tavlou, j Auaitors '

Tho Chairman said : Gentlemen, a very easy, hut at the same time a very' pleasing duly, Ims been assigned to me to-day, in proposing Hie adoption of the report and balance-sheet which you have just heard read. They require very little comment from me and I will not long detain you in the remarks I have to make. The Colony during the past half-year has been “ suilering a recovery.” The cloud of depression which, you will remember, was so clearly depicted in tho Chairman’s remarks at your last half-yearly meeting, has gradually —hut very gradually—lightened, an I though not yet altogether dissipated, what is left is but the shadow of the dark cloud which enveloped us last year. Depending so much as New Zealand docs on her pastoral and agricultural resources, the relief afforded by a favourable season, a bountiful harvest, and enhanced prices for our staple products, although not yet fully realised, has materially altered the financial condition of the producing interests, and has correspondingly improved the prospects of the monetary institutions doing business in the Colony. While freely recognising these evidences of improvonioiß, we are still aware that there is a good deal of lee-way to make up, and this, combined with'the prospects of public finance, as disclosed fiom time to tune in the Government returns, has induced a policy of continued caution, which has not been conducive to large profits. The balance-sheet will prove to you that wo have still felt it incumbent on us to keep our resources well in hand ; and the exceptionally low rates which have ruled for money in London, wlieie v.e have considered it desirable to keep large reserves, have considerably curtailed the half-year’s profits. Wo are, however, able legitimately to pay our usual dividend and bonus, and to carry fonvard such an amount as affords a reasonable prospect of our being able, at next half-year, to make a substantial addition to our reserve fund. A reduction in the extreme rates for deposits, which lias been forced upon us in tin 3 past, has been effected during the half-year; and this, with the more active demand for in nicy, affords the prospect of more profitable use of our large resources, the effect of which will, I hope, ho made apparent in our next report. In view of contemplated further taxation it may he well that I remind shareholders that we already pay in duty on circulation, and on property', considerably over LIO,OOO pe.r annum ;and although we fully recognise the obligation of colonists to provide for current (liabilities, it behoves us to see that tho incidence of taxation does not too severely' press on local institutions. Turning to the balance-sheet, it will be seen that our capital lias been fully made up to a million by the disposal of tho remnant ot last issue which was on hand at last balance —the premium on which appears at credit of profit and loss account. The circulation and bills payable are not materially altered, but an increase of a million is noticeable iu deposits, which is due to temporary lodgments by the Go-

vornmeut. Our cash balances and resources at short ca'l, you will see, arc ample for every contingency, and qur ordinary advances remain much sstbev wore at. close of last half-year. While expressing my (inn conviction in our ability to maintain our usual return to shareholders, the directors are determined to bo influenced more by consideration for the stability of tbo institution than by mere prolit. It will bo in the recollection of shareholders that at a special general meeting held on the 27th October, 1375, an alteration was made in section 29 of the deed of settlement, by a transposition of the words “ elsewhere in the British Dominions.” Doubts have now been suggested whether that alteration, taken in collection with The New Zealand Bank Act, ISdl, was properly mule, and the directors intend to apply in the next session of the General Assembly for a declaratory Act, to set at rest the sugges-

to,I doubts. It M ill bo remembered that at last half-yearly meeting it was announce.! that wo had notified to the Government our desire to terminate the then-existing agree-

ment as to their account. During the hist session of Parliament the Public Accounts Committee recommended that the matter be left in tbe bands of the (Joverment, and negotiations have since been in progress,

but arc not yet concluded, for a continuance of the account on modi tied terms Vi'o have quite resolved that unless such reasonable terms can bo secured as will ensure a profit on the heavy responsibilities attachin" to the account, we will prefer to dispense with it; hut I have little doubt that, in the interests of the Colony, the terms for which we stipulate will lie acceded to. Shareholders will have boon pleased to notice that our London Hoard lias hccu strengthened by the acquisition of Sir Penrose Julyan, late Crown Agent for the Colonies, whose long association with financial circles, and acquaintance with the requirements of tbe Colony, will no doubt prove of material advantage to the Bank. Although no official intimation has yet been received, we are aware that Sir .lames Fergusson has been appointed Governor of Bombay, which will, for a time at least, deprive us of his valuable assistance : but wo trust that at a future period ids relations with us may be renewed. I congratulate shareholders on the improved aspect of commercial matters in the Colony, the steady influx of capital, and the continued rapid settlement on our rich agricultural and pastoral lands : ami without taking too sanguine a view of the future, wo may reasonably look forward to increased prosperity for this institution With these remarks I bog to move the adoption of the report and balance-sheet. Mr .1. Stoke said : I beg to second the adontion of the report and balance-sheet just read. In doing so lam not aware that it is requisite for me to make any remarks, after the very lucid statement that has fallen from the month of the President. I can fnllv endorse what ho has stated as to the policy of caution which has characterised our operations as an institution during the past year. A reference to the naked figures of the balance-sheet docs not disclose that policy ; but those who, like myself, have had the. opportunity of considering the returns of the branches and the correspondence of the managers, will perceive that our policy has been a careful and conservative one in every place whore we do business. | This has been forced upon us by the aspect

of the times. The wave of trouble which started at Glasgow and extended through the length and breadth of the monetary world, was felt strongly by every institution doing banking business in every quarter of the globe. I think it speaks well, not only for the management of this institution,

but of Colonial institutions generally, that, with one or two trilling exceptions, that wave of trouble passed without any S'l-i.m-disastcr Of course our profits have, in o ni sequence of this state of things, been less died. The money at first call, backed a;

it is by substantial security yields but a small modicum ot profit, lint 1 am sure the policy wo have pursued will command itself to shareholders, and if a'l our customers have not been able to get all they could wish to have—although even somewhat

tempting accounts wo have been obliged to reject, accounts which, under other circumstances, we would have been proud to sco in our books - our failing has, if there was one, lean’t to virtue’s side, and the difficulty will bo appreciated by the stockholders of the Company. I have much pleasure in seconding the adoption of the report and balance-sheet. The motion for the adoption of Hie report and balance-sheet was put, and carried unanimously. The Chairman' said he would he happy to give any information to the shareholders that they might wish to have. No question was asked. Mr Stark : 1 hog to propose a vote of thanks, t" the directors and officers i.f the IBank. In doing so, I feel there is reason for very agreeable surprise at the amount of success that has attended the operations of the ißank during the last half year, f think that the thanks of the shareholders are due to all the direoto-s for the careful and conservative manner in which they have carried the IBank through the recent crisis. The reaction in matters of this kind is more to be apprehended than the trouble itself, find 1 am glad to see that we have passed through any such stage that was to be feared with safety. lam very well pleased with the favorable returns shown in the balance sheet. The thanks of the shareholders are also due to the officers for tiiey must have very ably assisted tho directors in carrying out that careful and cautious

policy which had been initiated. Mr David Nathan': I have very great pleasure to sea-aid the vote of thanks to the directors and officers of the ißank. Considering the very favorable report, and the difficulties they had to pass through, 1, think they are fully lentitled to this comment at the hands of the shareholders. The motion was pat, and carried unanimously. Tho Chairman ; To acknowledging the compliment you have paid us, I may stale on behalf of tho Board of directors, os well as for myself, that it will be vety highly appreciated ;it will stimulate us, if possible, to greater exertions in the interest of the shareholders. 1 may add that 1 have been connected with lids institution from its birth—in fact f may state that I was partly instrumental in bringing it into existence. I am, therefore very proud of tiio position which this institution lias attained. So long as I am on the Board, it u ill be my anxious endeavour to maintain that position. I look on this institution as the special product of the Colony of Now Zealand. I think it is a credit to New Zealand, and to all who arc connected with it.— (Hear.) The Centra;. Manager : it has often been my privilege to return thanks to tho shareholders on behalf of the staff. On account of your expressions of confidence in them, I am sure they will fed particular gratification at this time. There is no question that we have been passing through very troublous times. I arn bound to say

that your staff have acquitted themselves veil. They have willingly c irrio-.l out the policy dictate 1 to them by the Board of Directors. There is no doubt that a great deal of iho success has been due to the z al and judgment your oUlcers have brought to bear on your business. 1 fed sure that they will be much encouraged by this renew cl expression of your consilience in them. They will very much value your vote of thanks, as Ido myself. 1 shall have much pleasure in conveying it to them. Again I thank you The scroll mi nates were read, an 1 the meeting separated.