Bank of New Zealand

Horowhenua Chronicle, 18 June 1915, Page 3

Bank of New Zealand

THE ANMIAL MEETING. (Special to TJie Chronicle;.

Ihe annual meeting of the liank ot -New Zealand is being held at Wellington- this afternoon. ihe chairman of directors, Mr H. Beautiiamp, in moving the adoption of the report and balance-sheet, said: — The momentous events of July and August last involving the British nation in tile great European conflict which is now raging, and the consequent unprecedented conditions under which the finances, trade and commerceof the Empire have been conducted, have made the Bank's operations for the year of more than usual interest to shareholders. ' It will have been, therefore, with satisfaction that you. have seen that the board, after making provision For all bad and doubtful debts,.depreciation of investments, and other appropriations, was able to recommend a distribution to shareholders o the same scale as in recent years. At our .December meeting 1 -mentioned that file 0-59 shares unapplied lor of the issue of 75,000 new ordinary shares, worn being offered for sale by tendsr to shareholders. Applications were recefved aggregating 10,75/-i shares, the average prices tendered being £13 ">s 9d per share. Tho 559 shares-were allotted to the highest tenderers at an average of £15 10s (id per share. The guaranteed stock appears at £528,988. as against £1.0(10,000 in tho previous balance-sheet. I lie old stoc'-; matured on July 19th last, and the Bank's finances being in a strong position, the Board decided not to underwrite the new issuo. but to give existing holder* the option of exchanging then stools. Tile amount shown on the balance-sheet rerpesents the extent to which holders have availed oi the option. The balance of the old issue, with tlie exception of a tew thousands that have not yet, come in, has been ■paid off. At a suitable juncture, the Bank will make arrangements to issue the balance of the new stock; but in the present unfavourable state of the London money market nothing can be done, and, the Bank's finances being easy, we are able, without inconvenience, to await the arrival of a favourable opportunity.

The Reserve Fund. —Last year this fund wa.s increased to C1.650,00(1 oy the transfer From profits of £170,000, I have pleasure in announcing that, this year, by the additional of the premium received on new shares (less expense of issue), C31i5.03(i. and the transfer from profits which the board proposes to make. £84,4(i1. our reserve fund will stand at the substantial figure of £2,0(10,000. Of this amount. C] .000. 000 is invested in British Government securities. Notes .in Circulation. (CI /wli.Ool). are more by £808.1 fin than at. 31st March. 1911. This large increase is due to bank notes having boon legal tender since the commencement of the war. Gold has been gradually withdrawn from circulation, and notes have replaced it. deposits.—Which include free, fixed, and Government deposits, stand at £18.741.657. an increase of £671,0-14. as compared with the figures oT a year ago. Government balances are some-

A recruiting appeal for fifty collectolrs in fancy costuime to go up to the l'almerstoh North Winter Show andcollect in aid of the Wounded Soldiers' Fund is advertised in to-day's Chronicle on page 3.

A reward is offered for a lost broocn advertised for this issue.

what less; but deposits from the public —both free and fixed—are substantially

' la-rger. . J Bills Payable and Other liabilities, I stand at £1,070,103, an increase of i .C2uij,!i47 on tho figures of cwelve months I ago. j Coin, .Bullion, .Money at Short Call I Etc—-Coin and cash balances at bunkoes, and bullion, lugetber amount co £4,827,022, as against f.\'U77,180 at 3lst Maich, l'Ji-J. The increase in our : note circulation and dope-its -to which 1 have just reioried - and the general financial unrest, render prudent the maintenance of larger gold reserves. Money at .short call. Government securities, and other securities in London, together amount to C5.13(J,!J90, an increase of '£00,2-18 as compared witn twelve months ago. The total under this heading, togetn-i-r with the amount of bids receivable and investments, in the Colonics, are, ! may mention, oipial to fil.-'IJ per coir (or 12.10 d in the £, o! file total liabilities of.the bank to the public. You will be pleased to hear that full piovision has been made for all depreciation in investments, the whole of oui investment securities hating been written down to the minimum slock exchange office quotation at 31st March last. Hills Receivable, in London and in transit,exhibit an increase of C 137.220 as compared with the figures a year ago and now stand at £3,301,301, Ample provision lias been made foi any deficiency in respect oi bills helu, drawn upon banks, merchants and othev in belligerent states, and which, owing to the war, were not provided for when due. The aggregate ol these is comparatively inconsiderable. Advances. As compared with the figures of a year ago, bids discounted are less by £!J3.-">(;8, antl now. stand at Cl.tßb,loß. Other advances i£lo,<ili2 - 707; show an increase of £.382.218—a natural movement in view of our additional capital resources.

Landed Property and Premises.—Af tor appropriation from profits, now made, of £-">0,U(.0. ihis item stands at £45t,c>67, as compared with C-1i'J,577 a year ago. 'J ho bank's steady growth entails a considerable annual expenditure in providing suitable premises for the satisfactory conduct ot its business Profit and 1.u.-s. -The net, profits lor. tho yea.r. after paying interest on guaranteed stock and making all necessary appropriations, including provision lor the bank's annual grant to the prowdent fund as noli as a bonus to ■ the stall', and the allocation oi £50,000 in reduction of bunk premises and. furniture accounts, amount to £;j1!.).-ISO, as compared whh ..CMS. Vji> at 31.it ■March. li.U t. Adding the amount brought forward from last year (Col, (i 08; and deducting die amount of interim dividend at i> per cent paid ,u December. (.£100.000; the sum available for distribution is tiiiO.'Mi. The

directors now propo.se to pay a further dividend of 0 per cent and a bouus of '■> per cent on ordinary and "li' 'preference shares (.making io per cent lor tin*year). 'J ho distribution to shareholders will therefore amount, to (JliliU, toll lor year. CM' the balance remaining, it is proposed to trauster £61, 1d-1 to the Kos.-rve Eund and to carry forward £57,170. In looking o\er i.he profit ana loss, colunin it will be noticed that •'rates and taxes" are some C'J.'J.ODIt higher lhan last year. '.J'ijis increase is very largely flue to the increased note tax, consequent on the temporary expansion of the Note circulation. The numbers or our stall applying lor leave of absence,, to enable them o join tho Aew Zealand Expeditionary Forces, are largely in excess of those which it Jia.s boon lonnd possible to spare. The Bank s business is such that it cannot bo carried on by tho em ploy men t of casual hands as required A certain proportion of the staff must be men with speciai banking knowledge and experience oi" our methods of working. We are adjusting the staff as ivc have opportunity, and are allowing more men to join the ranks of t-Tie contingents as they can be spared. The number of our men who have gone to the front or are in training now totals

it.l. To colonial officers half-pay is lieing allowed, and they receive m addition their military pay. Jo Hie Loudon men we are allowing full pay, as their military pay is on a lower scale. Our approbation of those ol our .stall: who have gone to light the battles must, however, not lead us to overloou the more prosaic, though none the less valuable and exacting services of tile staff who have remained. Those have cheerfully performed extra work, foregoing holidays, and uudcrta-king longer hours of labour, :n order that those "desirous of volunteering might tie able to get away, in recognition of the good services of the staff during the year the board has again paid them a bonus of ■"> per cent on salaries. In this ■bonus the members ot the staff >serTing with the British rorccs shared on the basis of full pay. The export figures tor the quarto: 1 ended March 31st are available and amount, to .C1L.200.(100, as against .£[),!)!«. LOO for ihe quarter ended March 31st. IUI4. The import figures for the same quarter are, however, not complete? Customs revenue for t.lte quarter is said to amount to only .1:7:37.000, a* against .CiMo.OOO for the quarter ended 31st March, 11)11. .showing iha-t there has been a substantial falling off in importations. This is, ot course, all a the direction of widening the margin between imports and exports, thus ineieasing the credit balance on the i)o----lumino's trade as a whole, and rouseqilently the funds avaiblo here.'

A statistical comparison ol the Irad.'. ol Xew /Zealand with previous years Mould be apt to lie misleading, boeaii-o ol the great disturbance caused I»v rue w«r. The difficulty of importing goods an<l the advance-, in prices nil liie one side, make an examination of the position almost impossible, lor we have always to bear in mind that, after the war. drastic changes will no made. The rallies; of some commodities- must necessarily decline-, and others will probably advance : and a no-w view must bo taken of the situation, ruiancinl caseis apparent, but it is ease which, like the calm before the storm, may prosage storm and stress later on. The•accumulations in the hands of the banks are undoubtedly due to apprehension •w?tTi regard to the future, and a desire on the part of tlie depositors to be prepared for possible eventualities.