COLONIAL BANK OF NEW ZEALAND.

Globe, Volume XXIV, Issue 2436, 26 January 1882, Page 3

COLONIAL BANK OF NEW ZEALAND.

[Bi Tbmgbaph.] DUNEDIN, January 25. The half-yearly meeting of the shareholders in the Colonial Bank wao held this afternoon; the Hon. Geo. McLean, M.L.0., presiding. The chairman, in moving the adoption of the report and balance-sheet (which provided for £IOOO being carried to the reserve fnnd and for the payment of a dividend of 7 per cent., absorbing £14,0C0) said—Gentlemen, I have very gr<?at pleasure in meeting you this time. The directors feel that they can meet you with a better grace, because they have given you a little better dividend, and have not done it without being assured that the position of the Bank had gradually improved. We are gaining ground, and we are going ahead in euch a woy that we may now fairly seek to increase our dividend. We have during the last half year had a considerable increase of business in the shape of new accounts, and we have been going on steadily spreading our wings a little more. You will see that we have opened two further branches—one at Timaru, and one at Cambridge. We conceived that there were ohances of success at these places, and it is the policy of the directors to gradually spread [our wings as we can see our way to inorease our business, until we become by gradual growth surely and safely a large institution. Taking the balance sheet, you will see that certain portions of the business have fairly increased, with the exceptions, I may say, of the deposits, whioh show a little lower this half year than last. That is so. It is not through a falling off in our general deposit business, bceauoe our ordinary general business has increased during the half year, but it is from the withdrawal of special deposits, which it has not been our interest to keep longer than we could help, and the fact of these special deposits finding employment by the gradual absorption of capital in the colony at the present time. As I have said, we have fairly inereased our general deposit business by steady deposits, and have not encouraged those deposits which come for a special purpose and are taken away gradually. We have also our funds fairly enlarged, and I may say that we have the prospeot of good employment for them, always bearing in mind that we keep our position such that we are always ready to take up good accounts whenever they are offered to us. It will be our interest to study that and to make true progress by accepting good business wherever wo can get it, and so try and push the Bank ahead. I would also at this meeting like to refer to the special reserve fund. We had unfortunately to take some £20,000 from the resorve fund some time ago to meet speoial losses. I am sorry to say that by the next half year that will disappear from the balance sheet, and I am sorry to say it will all be required. While wp have this year entered upon a course of paying an increased dividend, we have been careful, as you will see, to inorease our present reserve fund so as to gradually creep up to what it was. We have been pretty free from bad debts. We have not been unmindful to reviow those properties that unfortunately have been thrown on our hands, and so far as they have gone thoy havo exceeded in several cases our expectations. It is difficult, of courso, to value these properties, and it does not do justioe to shareholders to represent them on the face of the books altogether, so that some day they might oome in a big lump. As I have said, we havo not been unmindful to review such things as these before increasing the dividend, and I wish to refer to this to remind shareholders of what we havo done. Gentlemen, I do not need, I think, to say very much to you to-day. lam happy to say that if you look back five years in the history of the Bank, a very marked increase will be noticed. During that time pur deposits have been almost doubled, and if we go on increasing in the ratio, we may be satisfied that our property is a good one. The report and balancesheet were unanimously adopted. Mr Geo. Gray Bussell was elected to the directory in place of Mr A. W. Morris, Mr F. B. Chapman moved a, vote of thanks to the direotors and officers, saying that the small attendance at the meeting was a proof of the satisfaction felt by the shareholdon.