The Hastings Standard Published Daily SATURDAY, AUGUST 28, 1897. THE BANK BALANCE-SHEET.

Hastings Standard, Issue 411, 28 August 1897, Page 2

The Hastings Standard Published Daily SATURDAY, AUGUST 28, 1897. THE BANK BALANCE-SHEET.

For the Cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

The balance-sheet of the Bank of New Zealand for the year ended March 31, 1897, is now before us, and we must confess that it is a masterpiece of the art of the accountant. The Bank has made profits during the year without doubt, but the net result is to leave it with a deficit of £24,900, which amount is due to the Assets Realisation Board. According to the Banking Act, 1895, a fixed cumulative sum of £50,000 a year must be paid to the Assets Board. For the year ending 31st March, 1896, a sum of £35,708 17s only was available for the discharge of this obligation, and for the year ending 31st March, 1897, the amount so available is £39,391 2s lid. The two amounts fall short of the sum that should have been paid over to the Assets Board during the two years by £24,900 0s Id. The two sump, £35,708 17s and £39,391 2s lid, together amount to £75,099 19s lid, and represent the profits of the bank for two years after providing for interest on borrowed money and providing for bad and doubtful debts and writing down furniture. The amount, as we have shown, is insufficient to pay the obligations to the Assets Board, and in order to accomplish this little, two paper assets, as the Debenture Conversion Account of £68,445 and the Colonial Bank Purchase Goodwill Account of £75,000, exist. The shareholders receive no dividend, and in the nature of things it is doubtful if they ever will. Indeed we think it cruel irony to call them the proprietors of the bank and to go through the farce annually of calling them together to hear an optimistic speech from the President. The so-oailed shareholders

of the Bank of New Zealand have not one penny piece of interest in the institution they are supposed to own. The bank has had the full benefit for a whole year of the business of the Colonial Bank or such of it as it has been possible to retain, and the figures are disappointing. The earning power of the State Bank has not been increased to any appreciable exteat, and the inference to be. drawn from this we must leave to our readers. To indulge in a fair and honest criticism of the Bank of New Zealand as disclosed by its balance-sheet would be a dangerous thing if the truth had to be'told, and we do not think it is advisable that anything like a true criticism is desirable. For good or ill the colony's interests are wrapped up in the Bank, and while we can hope that the end may see the State clear of loss, the promises of such are not good. It is inadvisable to call attention here to any peculiarities of the balance-sheet; we think it would be batter to allow the Bank to work out its destiny in the best way it can. The best will be bad for the colony, and it is not our purpose, nor would it be commendable on our part, to do anything that will hamper or harass the institution. The balance-sheet must, according to law, be submitted to Parliament, and no doubt a full discussion will take place in the House ; but it is to be hoped members will not be too critical, and so hasten the crisis which to us appears inevitable. The colony has suffered enough already, and a few years' respite is desirable. After the close of the century we may be better able to stand the wear and tear of a financial crisis, and we trust that nothing will be done in Parliament to accelerate the event. The only question that we hope to see vigorously debated and criticised is the relation of William "Watson as president. We have long been of opinion that he is not qualified for the position, and we think the public share this opinion. At any rate we are satisfied that he does not command the confidence of the business community, and for that reason alone if for no other he ought to be replaced. We advise all those who have an interest in the colony "to study the balance-sheet of the Bank of New Zealand, as such a course will be to their ultimate benefit. We decline to say more about this State Bank.