BANK OF NEW ZEALAND

Gisborne Times, Volume XXV, Issue 2057, 7 December 1907, Page 3

BANK OF NEW ZEALAND

HALF-YEARLY MEETING. ‘‘MONEY MUST HARDEN IN NEW ZEALAND.” BUSINESS AND PROFITS MAINTAINED. Press Associati&n. WELLINGTON.. Dec. 6. At the half-yearly meeting of the Bank of New Zealand, the Chairman referred to tho recent fall in wool, hemp, mutton, tallow, and pelts, but said lie did not consider the values obtaining left much cause for complaint. The fall was probably in sympathy with the disturbed state of the money market, -aiid the rates would improve with it. Adverting to the financial crisis, he predicted that if tlie 7 per cent Bank of England rate was maintained for long, money must harden in New Zealand also. The crisis in America was attributed to New York bankers trading on a narrow margin of gold, and the encouragement of vast credit. He issued a note of warning in connection with the system in New Zealand of several largo trading concerns competing for deposits and allowing interest nn current bank balances. He had recently examined the published balance-sheets of seven companies, and found their indebtedness in tliis respect was £535,516. If by statute tlie hanks were compelled to keep securities to the value of 6s 8d in the £ on.their liabilities, payable on demand, it was only right that a similar obligation should he cast on these companies. It was gratifying to sav the business and profits of the bank so far had been web maintained, and the prospects were encouraging. Air. Alartin Kennedy, who had iust returned from Home, had made" himself thoroughly acquainted with their business in London, and they would be pleased to hear they had passed practically unscathed through the recent trying times. During the year realisations of properties taken over from the Assets Board had been effected to. the extent of £332,646. The total left now stood at £585,565. . The Board proposed to pay an interim dividend of 5 per 'cent on both classes of* shares. , . Mr. Martin Kennedy, being unopposed, was declared re-elected to the Board. Air. Martin Kennedy quoted particulars of the capital and reserves of other banking institutions doing business in the colony, with a view to showing that if £150,000 . V as added to the ''reserve, tjie time had arrived for an increase of dividend. In reply to this,-the Chairman of directors quoted the paid-ni) capital and reserves of other institutions as 'a set-off to Air. Kennedy. Hie declared it was inadvisable to attempt to increase the dividend until such time as the reserves of the • Bank of New Zealand fairly approached those of other institutions with which it competed. Air. Kennedy said that wlulo the reserves of other institutions exceeded those of the Bank of New Zealand, it had to be remembered. that their business, consisted of operations which largely extended ' throughout Australia, where there was always a possibility of big losses through drought. It was in Australia the Bank of Now Zealand had lost largely in the past, and while it still carried on business there,'it now dealt in a gilt-edged class of business, thanks to the staff.