BANK OF NEW ZEALAND.

Globe, Volume XXII, Issue 1923, 23 April 1880, Page 3

BANK OF NEW ZEALAND.

[By Telegbaph.] [ebom oub own coeeesbondbnt.] AUCKLAND, April 22. The thirty-seventh half-yearly meeting of the Bank of New Zealand was held to day, at noon. The directors’ report was as follows. The net profit to the 31st March, after duly providing for all bad or doubtful dependencies, and for the usual reductions in Bank premises and furniture, amounts to £74,101 17s 4d, to which has to be added the premium obtained on the sale of the balance of new shares, £17,193, and the balance from the half-year ended 30th September, 1879, £5890 6s 5d ; making the total available for division £97,185 3s 9d, which it was now recommended should be appropriated as follows : —To the payment of a dividend at the rate of 10 per cent, per annum, £50,000; bonus of 5s per share, equal to 5 per cent, per annum, £25,000 ; balance to be carried to profit and loss, new account, £22,185 3s 9d. The aggregate balance sheet showed—Liabilities, £11,116,808, of which £7,629,811 are deposits and other liabilities; bills payable in circulation, £1,327,451. Assets—Coin and cash balances at bankers, £2,114 667 ; money on short call at London, £875,436 ; calls Receivable and securities at London, £1,081,433; bills discounted and other debts due to Bank, £7.443,978. The chairman, in moving the adoption of the report and balance-sheet, said—Gentlemen, a very easy, but at the same time very pleasing duty has been assigned to me to-day in proposing the adoption of the report and balance sheet which you have just heard read, and as they require very little comment from me, I will not long detain you in the remarks I have to make. The colony during the past half year has been suffering a recovery. The cloud of depression which you well remember was so clearly depicted in the chairman’s remarks at your last half-yearly meeting, has gradually lightened, and though not yet altogether disappeared, what is left is but the shadow of the dark cloud which enveloped us last year. While freely recognising these evidences of improvement in the colony, we are still aware that there is a good deal of leeway ’to make up, and this, combined with the prospects of public finance, as disclosed from time to time in the Government returns, has induced the policy of continued caution, which has not been conducive to largo profits. The balance-sheet will prove to you that we have still felt it incumbent on us to keep our resources well in hand, and the exceptionally low rates which have ruled for money in London, where we have considered it desirable to keep large reserves, have considerably curtailed the half-year’s profit. We are, however, able legitimately to pay our usual dividend and bonus, and to carry forward such an amount as affords reasonable prospect of our being able at the next half-yearly meeting to make substantial addition to the reserve fund. The reduction in the extreme rates for deposits which had been forced upon us in the past has been effected during the half year, and this, with the more active demand for money, affords a prospect of a more profitable use of our large resources, the effect of which will, I hope, be made apparent in our next report. In view of contemplated further taxa-

tion, it may be well that I remind shareholders that we already pay in duty on money in circulation and in property, considerably over £IOOO per annum, and although we fully recognise the obligations of colonists to pro. vide for current liabilities, it behoves us to see that the incidence of taxation does not too severely press on local institutions. Turning to the balance-sheet it will be seen that our capital has been fully made up to a million, by the disposal of the remnant of the last issue, which was on hand at the last balance-sheet. Our cash balances and resources at short call, you will see, are ample for every contingency, and our ordinary advances remain much as they were at the close of last half-year. It will be in the recollection of shareholders that at especial general meeting, held on the 27th October, 1865, an alteration was made in section 59 of the deed of settlement by the transposition of the words “ elsewhere in the British Dominions.” Doubts hare now been suggested whether that alteration taken in connection with the New Zealand Bank Act of 1861, was properly made, and the directors intend to apply at the next session to set at rest the suggested doubts. At the last half yearly meeting it was stated that we had notified the Government of our desire to terminate the then existing agreement as to their account during the last session of Parliament. Negotiations have since been in progress, but are not yet concluded, for a continuance of the account on modified terms. We have quite resolved that unless such reasonable terms can be secured as will insure a profit on the heavy responsibilities attaching to the account, we will prefer to dispense with it, but I have little doubt that in the of the colony the terms for which we stipulate will be acceded to. Shareholders will have been pleased to notice that our London Board has been strengthened by the acquisition of Sir Penrose Julyan, late Crown Agent for the Colonies, whose long association with financial circles and acquaintance with the requirements of the colony will no doubt prove of material benefit. Official intimation has been received, as you are aware, that Sir Jas. Ferguson has been appointed Governor of Bombay, which will, for a time at least, deprive us of his valuable assistance, but we trust that at a future period his relations with us may be renewed. Without taking too sanguine a view of the future, we may reasonably look forward to increased prosperity for this institution. With these remarks I beg to move the adoption of the report and balance-sheet. Mr 0. J. Stone seconded the motion, which was carried nem. con. A vote of thanks to the directors and officers was passed. The dividend and bonus will be payable at the head office, Auckland, on Saturday, April 24th, and at the branches on receipt of advice.