N.Z. LOAN AND MERCANTILE

Evening Post, Volume CXII, Issue 157, 31 December 1931, Page 10

N.Z. LOAN AND MERCANTILE

■The annual report of the New Zealand Loan and Mercantile Agency, Co., Ltd,, states that in consequence of the low prices for the products of the primary industries in Australia and New 'Zealand which have prevailed throughout, the year, the company's earnings in commission^ and interest have been greatly reduced. These conditions have also adversely affected the position of many of the company's clients, with the result that special provisions have been required to be made for bad and doubtful debts. As stated in the profit and loss account, a transfer of £155,000 has been made from accounts set aside in past years for dealing with contingencies. It will be seen from the accounts that after making this transfer and after paying interest on the first and second mortgage debenture stocks there remains a credit balance of £0335 los Id, to which has to be added the amount brought forward from last year, viz., £12,462 14s Cd, leaving to be carried forward £18,!)9S- 9s 7d. An interim dividend on the second preference stock was paid on 31st December, 1930, in accordance with the terms of the issue of that stock, at a time when it appeafed that profits would be earned by the end of the year sufficient at least to pay the- full dividend on both classes of pro-! ference stock. The directors regret that in face of Hie result of the year's trading as disclosed, in the accounts they cannot recommend the payment of any further1 dividends. No provision has been made in the accounts for depreciation due to the adverse exchanges between Australia and Xew Zealand and England. The board

believe that these rates of exchange are. at least to a large degree, temporary, and will gradually disappear, a belief which is founded on the manner in which these countries are dealing with the serious problems with which they are confronted, and the recuperative powers which both Australia and New Zealand have shown in tho post. Since the close of the accounts the prices of wool and when!, have also shown improvement, which, it maintained, should tend to hasten a return to prosperity. Messrs. A. M. Mitchison and Olive L. Bnillicu, C.M.G., retire from office a.s directors in terms of 'the articles of association, and, being eligible, offer themselves for re-election by the stockholders. The auditors, Messrs. Kemp, Chatteris, Nichols, Sendell, and Co., and Mr. Sydney R. Worley, also retire and offer themselves for re-election.