BANK OF NEW ZEALAND

Evening Post, Volume CXIV, Issue 124, 22 November 1932, Page 6

BANK OF NEW ZEALAND

(To the Editor.)

Sir, —Some time prior to the last distrilution of dividend the board of directors decided that shareholders resident in England should be paid their dividends in New Zealand currency, and not, as theretofore, in English currency. In other words, these shareholders/most of'whom are New Zealanders either by birth or-bj long residence here, were deprived of onetenth of their dividends ai.d will be similarly deprived next month. Taxation at Home is considerably higher than it is here. All these shareholders have to pay it, and yet the directors decree that they shall also pay 10 per cent of their- dividends toward (in effect) New Zealand taxation. Is this quite fair or reasonable? .And while the amount bo gamed toward Neiv Zealand taxation is so small as to be hardly worth mentioning real hardship is being caused to many of these unfortunates, who have little enough left after paying -English taxation. The directors' excuse is that an Australian bank (which has been and is working overtime to raise our exchange rate to 25 per cent, or more) already treats its tlome shareholders in" the same way. I am too proud-of our premier bank's good name to like to see it draggle-tailed along at the heels of any Australian bank. and. therefore, I trust that the board will promptly reinstate its former practice—l am, etc., ... A NEW ZEALAXD SHAREHOLDER. Inquiries made at the bank went to show that although it was a matter for regret that shareholders on the London register received their 'dividends in -New Zealand currency, counsel's opinion was to the effect that the distribution of profits must be made only in New Zealand currency.