BANK OF NEW SOUTH WALES.

Gisborne Times, Volume XXII, Issue 1780, 11 June 1906, Page 3

BANK OF NEW SOUTH WALES.

A PROSPEROUS HALF-YE \R.

Tho hundred and eleventh bnif-yoarly mooting of the Bank of New South Wales was hold at SydQey, Dr. O. Iv. Mackollar, M.L.0., prosiding. Tho report (which was adopted) shows that the net profits for tho half-year, after deduoting rebate on current bills, intorest on deposits, paying into and other taxes, reduoing valuation of bank prom's os, providiog for bad and doubtful debts, and fluctuations in the value of investment securities, and including recoveries from debts previously written off as bad, amounted to £129.383, to wbioh having been added the undivided balance from last half yeat cf £lB 232, mide £147,617, available for distribution. This sum the dirootors recommended to be dealt with as follows :-To payment of dividend at the rate of 10 per oent. por annum, £10,000; to augmentation of the reserve fund, £25,000; to balanoe oarried

'orward, £22,617. The chairman, in moving the adoption of tho report, said:—" Comparing the figures of Maroh, 1905, with tbo3B of the present half-year, I beg to call your attontion to the following features The oiroulalion has inoreaßed by tho nominal sum of £35,000 ooly. It is becoming more and more evident that notes so far as these colonies are oonosrned are beiog used almost solely for what may bo termsd pookst-money purposes, and that the adoption of the cheque, based on a current acoount, as a meaus of settling payments of even the sma'lest description, provides tho real currenoy of the country. Deposits have increased somewhat over £1,500,000 on the year. This is not quite so largo an inorease as that between March, 1904, and Marob, 1905, but is sufficiently noteworthy, and arises to a la-ge extent from the same oau s e wbioh was referred to last year, namely, the enhanced income aooru ing to the producing interests. Tho inorease is fairly evenly divided between fixed deposits and ourrent acoounts. Tub reduction in the rales of interest paid on the former has had a steadying effect, as was pointed out last half-year. B4>s payable and other liabilities have increased by some £BOO,OOO, which is very largely in bills payable. This may be fairly taken as Bn indication that the requirements of our cos'.ome-s to p sy for imports are again on the inorease, after a somewhat slack timß in this resp oh Suoh a trade tendency was to be expected io view of the very much improved condition of the great producing interests. 11 The accumulaticn of deposit mocßy is reflected very.'blearly on the asset Bide Coin and its equivalents have increased by £3BO 000, while money at short call in London"'shows the large increase of £1,240,000, We have fully availed ourselves of the openings whioh have presented themselves of placing our spare funds in London, where at present they are earning good rates, and where they will be readily available when required for use in the business at this end, 11 Bilis receivable in London or on the way thither, and remittances in transit, how an inorease of £720 000, whioh is really part of the operations just referred to, and will tend to further strengthen the London funds. "Advances are practically stationary, and with refetenoe to these, as has beeu explained before, you will readily understand that the faotors wh’oh have brought about a speoial inorease in the deposits, namely, exceptional receipts of money for produce Eold, must alike affect the advances by way of deoroase. There has been a considerable deoreaso in individual acoounts, but we have been able to relond the money thus repaid to other clients, and thereby at least maintain the advanoes at an even figure. It may be expected tbat as.the improved condition in our country districts make themselves felt, tbo requirements of our clients generally will increase, But we have no desire to force matters in this respect, nor to encourage any spirit of speculation. , . Iu order to provide suitable accommodation at Wellington, N.Z., wo have had to dismantle our very old wooden building—one of the oldest in the city—and ereot an entirely new oop. We have now got a handsome building there, worthy of the oapital city of New Zealand, and of our own Iccal headquarters in that flourishing colony. . . . The general oonditionß in the country districts arc for the most part fairly satisfactory, good rains have fellm in a large portion of Queensland, and in some districts oi Viotoria and New South Wales. There are, however, large tcaots of country in New South Wales and some iu Viotoria in which the rainfall has been very soanty, and in these portions pastcralists are locking forward with some anxiety to the prospects of lambiDg in the coming winter and spring.”