The Gisborne Times. PUBLISHED EVERY MORNING. SATURDAY, JUNE 27, 1908. THE BANK OF NEW’ ZEALAND.

Gisborne Times, Volume XXVI, Issue 2228, 27 June 1908, Page 2

The Gisborne Times. PUBLISHED EVERY MORNING. SATURDAY, JUNE 27, 1908. THE BANK OF NEW’ ZEALAND.

The annual’ report of the Bank of New Zealand must -always be of tlio greatest .interest to those concerned in- the welfare of the Dominion, as it constitutes an excellent barometer of our commercial condition. Apart from the preponderating influence of the ißank of New Zealand, the fact that the people of the Dominion were at ono time called upon to rescue the bank from a perilous situation and that we still have a large sum of money invested in the institution gives to its doings an additional interest beyond what it. would otherwise possess. -This year tho speeches of tho gentlemen who moved anil seconded tho adoption of tlio report and bal-ance-sheet are of especial importance inasmuch us they treat in a thorough manner, not merely of the particular interests of Tlio Bank, but a Isa of Dominion affairs as a whole. Moreover, the fact that we are now passing through a period, if not of depressionnt any rate of the deepest concern to commercial circles, is still another reason for giving tho utmost attention to tho utterances referred to. Dealing first with the balancesheet, at can only bo looked upon as a particularly satisfying document, for it tells of a- net profit of no less thru £309,000, which permits of paying a- 10 per cent, dividend to ordinary shareholders and of 7$ on the preference share capital held by tho State; at tho 6ame time that a very substantial amount, £200,000, is transferred to the reserve fund. The figures shown an tho balance-sheet, which is published on another page, give the fullest particulars of tho financial position, and these indicate that tho year just closed has beenmarked by an expanding business conducted on tho soundest lines. On the general aspect of the Dominion’s position and prospects tho address of Mr. Beauchamp contains matter every line of which should bo read carefully by those who wish to have a thorough understanding of the factors that really count for this country’s commerical welfare. The tables with which the speech is amplified fully justify Mr. Beauchamp’s conclusion that tho country has never been in so good a position to stand a set-back in the prosperity we have enjoyed for a number of years. The fact, however, that our exports of last year 6how a decline as compared with the provious year of more than one and a-hulf million pounds in value, and that the declension will bo more clearly emphasised when the true trading year September 30 closes, is a sufficient evidence that a serious check has been sustained. Tho fall in the price of wool has, of course, been the chief factor in the result, and Mr. ißeauchamp’s opinion that land values are likely to be reduced in consequence of this and other causes is worthy of careful consideration. Strictly speaking, it may bo accepted as definite that rural lands will decline in firico for assuming the Banks’ act on the opinion outlined at yesterday’s meeting and refuse to advauce money’ on former bases values must bo prejudicially affected. However, Mr. ißeauchamp does not apparently consider that such a fall in values is likely to bo very marked or that any commercial depression is likely to be prolonged—giving solid reasons for his views—but ho administers a word of caution to those concerned in trading enterprises us well as to the farmers themselves.

Mr. Watson deals with an important aspect of the .Bank’s position in setting forth the precise relationship of the State to the ordinary shareholders, tand here again it is proper when alb sorts of wild rumors are constantly being circulated to the effect that the institution is almost a State (Bank, that the real position should bo made known. The Bunk is at the present time filling a most important part in our commercial world, and thanks to excellent management is accomplishing splendid work not only for its shareholders but also for the general public. The sequence of events has fully justified the statesmanship of the late Mr. Seddon in coming to the assistance of the Bank) aud thus averting a serious.

financial orlsis, but that is really no argument for the State Bank theorists. It would probably bo well for tho Stato to always retain something of a direct interest and control in a Bank which not only transacts Government business, but is also intimately associated with tlio prosperity of tho'Dominion, and it is to bo hoped that some way will be found of giving effect to this view when tho Government’s gusuunteed stock is paid oil. In tho moantime wo can cordially oongriitululo the management upon the gratifying results dißclosed in the report and balunceslieofc just issued.