Bank of New Zealand.

Feilding Star, Volume XVI, Issue 188, 8 February 1895, Page 2

Bank of New Zealand.

HALF-YEARLY MEETING. (Per Press Association! Wellington, February 7. Abont 60 shareholders wore present at the half yearly meeting of shareholders of the Bank of New Zealand, held at the Chamber of Commerce this afternoon. The Directors' report was as follows : —On the 31st March, 1894, the total liabilities were : — £11,125,504 ; on September 30, L1L462,984. The. latter included capital .£2,416,440, as against L 900.000 ; bills payable, .£870, 106, against £1,413,907 ; deposits and other liabilities, L 7.649.303, against £8,213,199 ; profit and loss account, £17.324, against .£37,740. The assets on September 30 showed com, £1,6:37,023, against £1,463,---364 in March ; bills receivable and discounts, £1,369,403, agaiust £2,383,---073 ; advances and other debts due to Bank, £5,506,544, against Jb4,855,569 ; investments in British consols, etc., £608,685, against £61,024 ; bullion, £78,900, against £98,655. The increase in capital was due to instalments of Government guaranteed stock having been received. The decrease in the deposit account for most part was due to withdrawals in the United Kingdom, partly on account of what occurred in June last, and partly because the rates of interest were lowered. Shareholders were to be congratulated on exchanging these deposits for guaranteed stock. The Bank had borrowed too much in the United Kingdom by way of deposits, and would not again take so much. The profit and loss account, he regretted to say, showed a foss on the half-year's working of £20,416. They did not propose, therefore, to pay an interim dividend. On the assets side there were increases in coin, cash balances, money at call and short notice, consols and other stocks amounting to £720,820 due to temporary an<l permanent bestowal of part of the new capital. They also had on Setembcr 80th over £700,000 invested in short loans in London returning very small interest while they were paying 4.V on deposits and 5-h on Estates "Company's debentures. The rates for deposits were now reduced, £750,000 debentures were to be paid off, and they had already invested almost all the second million in sound and liquid securities bringing in interest approximating closely to what they paid in London for twelve months' fixed- deposits. This second million was a reserve and it was indispensable investment should be of a liquid nature. A large portion has been invested in Cabinet stocks in London. Purchases were still goiug on and probably by this time all was invested, but they knew they had L 608.000 in colonial stocks, besides L 172.600 in British consols and other liquid securities. The balance, if any, would be held in coin till it could be judiciously invested. Altogether the figures showed vastly greater strength when compared with the previous halfyear and very full security to .those dealing with the Bank. Th« directors had found on careful examination of the Bank's affairs that there were losses tc be provided for somewhat exceeding £300,000. They did not see their way to declaring future profits with these unprovided, for hence the call of one-third reserve liability. They were satisfied provided they could work on lines laid out for themselves of which they had every expectation. The earning power of the bank would be placed beyond doubt and no further call would be necessary. For purposes of economy the direction of the Estate Company in future would be entirely in the hands oi two directors — Messrs Johnston anc Booth— associated with himself for pur poses of consultation. They expected tc make considerable saving in this direc tion. Several branches were being closec and all doubtful advances stopped foi liquidation. He commended the way ir which the staff had kept good business together and the loyal manner in whiel: the customers had rallied round th< Bank. At the yearly meeting in August if not before, the; directors intended tc propose certain measures inadvisable t< disclose now, which they thought woulc be advautageous. They must bear ir mind, however, the savings the r^ev Board had effected, and the result o their work could not bear fruit for som< mouths yet, and in the meantime he de precated any agitation to the disadvan tage of the Bank. With the growing capacity of the colony they should have confidence in the future, . and if prices improved they would derive all the greater benefit from them. Mr William Watson, President of th( bank was in the chair, and haying reac the report of the directors he moved it! adoption. Mr B. Hallenstein seconded the adop tion of the report, and in doing: so though! it better to bravely face matters than tc piye way to feelings of gloom and distress Great credit, he thought was due to Gov ernment and to both Houses of Parlia ment for averting a great calamity during the crisis in the Bank's career last session The recent call ought to makp the Bant one of the strongest in New Zealand, anc with the energetic and clever man at pre sent at the helm he thought the bank ai no very distant date would again become a dividend paying institution. Mr A, M. Blanchard moved as an amendment, that the report of the President is not satisfactory, us it does not convey sufficient information Mr E. Allan, representing the Nelson shareholders seconded the amendment. The President declined to accept a number of Nelson proxies, on the ground that they were informal. Mr Blanchard's amendment was put and lost by a show ot bauds. Mr Allan thereupou demanded a poll, which resulted as follows : — For the amendment 388 votes ; against 17,99-J votes The amendment was therefore lost. The President's report was then put and declared carried unanimously. The Eev. J. Eiley, as a large shareholder, eaid he looked upon the President's statement as clear and concise, and contained all information shareholders could wish from the Bank. He had great hopes of amalgam ifcion with the Colonial Bank and if it came about he hoped to see one of the finest institutions in the Australian colonies. The meeting closed with a hearty vote of thanks to and confidence in the president, directors, and staff of the Baokv