BANK OF NEW ZEALAND.

Hokitika Guardian, 21 June 1918, Page 4

BANK OF NEW ZEALAND.

ANNUAL MEETING,

WimraNGTOx, Jane ‘2l

The ordinary general meeting of the proprietors of the Bank ot New Zealand was held to-day.

Mr H. Beauchamp, Chairman of Directors, presided. * With the consent of the meeting, the report of the Directors and the balance sheet were taken as read. The Chairman, in moving their adoption, said : Conies of the report and balance sheet having been distributed among 3-011, you are aware that the results of the year's operations have been satisfactory. I will now proceed, as usual, to review briefly the various items of the balance sheet.

Capital—This remains the same as last year.

The Reserve Fund- —This fund, which, after the appropriation made last year, stood at £2,135,000, is under our proposals, to be increased to £2,200,000 by the ndditipn of £65,000 from the current year’s profits. Notes in circulation—(£3,3l2,99s) show an increase of £752,670. The Bank’s circulation may be expected to remain high as long as existing currency conditions continue. In addition to the abnormal requirements for internal purposes, consequent upon notes being made legal tender and gold having practically disappeared from the currency, considerable quantities of our notes are taken out of the Dominion temporarily for payment of troops eu route to the seats of war. The increase thus occasioned in our circulatiouamountsto many thousands of pounds. Deposits (£30,437,936). This item embraces deposits ofyill kinds (including Government deposits). The increase shown amounts to .£1,385,1:46, and occurs entirely in the Government figures. Ordinary deposits from the public have slightly decreased. These movements have no significance, and were to be expected owing to the transfer of funds from one category to the other consequent upon the subscription by the public to.the large Government loans raised locally for war purposes.

Bills payable and other liabilities —(£2,329,559). The increase shown here is £321,491,— an ordinary fluctuation which calls for no comment.

Coin, Bullion, Government and Legal Tender Notes, £7,225,047. These items show an increase of £579,439, more than the whole of which appears under the headings “ Government Notes” and “Notes of Other Banks (Legal Tender).” These are items in which large fluctuations are to lie expected while existing conditions of the Note currency and of war expenditure continue.

Money at short calls, etc, and Bills receivable in London — (£12,442,880). This item has increased £294,731. The greater part of our large London funds continues to be employed in securities of the highest class —mostly British Government short-dated bonds, and full provision has been made for writing down all our investments to market value at 31st March last. Investments in the Dominion— It will be noted that these now stand at £2,958,176.

The total assets under the headings of Coin and Cash Balances, etc. Money at Short Call,. Bills'Receiv - able in London, and Government and other Securities in London and the Dominion, are equal to 62-71 per cent, or 12s 6-Id iu the £, of the total liabilities of the Bank to the public.

Advances—Bills Discounted £1,320,261) show an increase of £63,540 and other advances (£16,466,493), an increase of £1.976.730The demands made upon us by the meat freezing industry continue very large. Shipping facilities are more restricted that they were twelve months ago, and the available refrigerated space of the freezing companies is becoming rapidly filled. Many companies are extending their storage space, and in order to fill it, will have to lean heavily upon the Banks. Recognising how serious would be the position for our pastoralists and farmers if .the freezing companies had to cease buying stock, the Bank is assisting the freezingcompanies and meat buyers to the utmost extent to which it can prudently go. It is to be hoped that the decreasing effectiveness of the submarines and the increasingoutput of new tonnage, will, before next freezing season opens, have eased the shipping position enough to admit of sufficient meat-carrying steamers being set free to remove the greater part of the existing accumulations, and clear the stores for the new season’s operations. Lauded Property, Premises, &c., (£425,823), a decrease of £24,989. This is after writing off £50,000 for depreciation. No large outlay has been made during the year on any individual property, but, with such wide representation as ours, building or enlargement of existing buildings has constantly to be going on to meet the requirements of our rapidly developing business. This outlay explains why the premises account does not show greater reduction as the result of the application of the £50,090 appropriation made. Profit and Loss. —After making all necessary provisions, paying the interest on the Guaranteed Stock, making the annual grant to the Provident Fund, paying bonuses to the staff, and appropriating £50,000 to the writing down of Bank premises and furniture accounts, the net profits for the year amount to £336,607, as against £365,489 at 31st March, 1917. Adding to this the amount brought forward from last year £111,595, and deducting the amount of the interim dividend of 6 per cent paid in December laM (£105,000) we have available Redistribution £343.202. It is now proposed to pay a further dividend of 6 per cent and bonus of 3 per cent on Ordinary and “ B ” Prefer- 1 ence shares (making 15per cent fori the year), and a further 4 per cnntg

on “ A ” preference shares (making io per cent for the year). The total distributions to shareholders will therefore be as last year, viz., £237,500. £65,000 ot the amount remaining it is proposed to place to the Reserve Fund, and to carry forward the balance of £145,702. Incidentally I may mention that rates and taxes (including note duty and income tax) have amounted during the year to £346,384, an in ‘ crease of £148,333 on the amount paid last year, which was itself £60,955 higher than the taxes paid in the previous year. The Balance Sheet, you will observe, shows that the figures of our business are increasing rapidly. The aggregate of our assets for this Balance Sheet is £40,838,682, as compared with £38,280,167, at 31st March, 1917. I refer to this development with much satisfaction. To some extent it is the consequence ot the War conditions under which we are at present working ; but I am persuaded that, in no small measure, it is the result of the business policy which the Bank has consistently followed for many years in encouraging the development of the country by assisting sound enterprise in every practicable direction. An impression has gained ground in some quarters that the Bank is the Bank of the big man, and that small accounts are not valued by us. Nothing could he further from the truth. The Bank is by no means exclusive. It helps the small man as well as the big man. In proof of this, I may say that 70 per cent of our overdrawn accounts at 31st March last were the accounts of small men having overdrafts of £SOO or less, 11 percent represented overdrafts between £SOO and £ 1,000, and only 19 per cent overdrafts in excess of £I.OOO. These figures show that we are not essentially, or even mainly, the Bank ot the bigman,

The small man may always depend upon his requirements receiving sympathetic consideration at our hands, and will usually have them met, provided that he has reasonably satisfactory security to offer us.

STAl'l-

Heavy demands continue to be made upon our male staff for military purposes. The number at present on leave in consequence of war requirements is 393, and 46 have returned to the Dominion and resumed duty ; 52 have been killed and 135 wounded. Some of our most promising young officers are, I regret to say, on the list of the lost. To the friends and relatives of all the fallen we offer our deepest sympathy.

Many of the men who have leturned are labouring under disabilites physical or mental, or both, the result of their war expeiiences. Wherever possible, we are endeavouring to find work for them in the service. Only in 'cases where they are incapable to perform bank duty are we unable to find them employment.

Hitherto, the call upon our staff has been confined mostly to the junior single men officers of the First Division. But now that men of the Second Division arc being balloted, our difficulties arc likely to increase, as the senior married and more experienced officers wil. be taken. As a rule, it inn been found impracticable to promote women clerks to these senior positions. If the drain continues, therefore, the situation can be met only by the closing of Branches and Agencies. A good deal of this lias been done already, and more is in contemplation. The districts affected dislike the withdrawal of Branches, but I trust they will accept the position philosophically, recognising that it is purely a war necessity and that, when the necessity is past, they may look for a reversion to former conditions. Our women clerks now number 326. Though in most cases the area of their usefulness is circumscribed, they are doing efficient and valuable work in their respective spheres. In every practicable department their services wil! be utilised to the utmost extent possible.

We desire to express our appreciation of the work of the whole active staff, both male and female, during the year under review. As the cost of living has continued high, the Board have decided to continue for another year the monthly war bonus of 10 per cent, which I mentioned in June last was being paid on salaries of married men and single men with dependents. It has also been decided to extend the maximum salaries to which such bonus applies from £SOO to £7OO. The profits for the year being satisfactory, the Board have also paid a cash bonus to all officers on the same scale as ke-t year, namely 5 per cent on salaries to all officers who have drawn the monthly war bonus of 10 per cent, and 10 per cent on the salaries ol others (including women clerks and men on active service) who have not been drawing the monthly war bonus.

I.ONDOX HANKERS,

Since we last met, a change has taken place in our London bankingarrangements. Our main account has been kept for many years with Messrs Glyu, Mills, Currie and Co, having been taken over by them in ISS9, at a time when the Bank’s position and prospects were very different from what they are to-day. Throughout the intervening years, our mutual relations have been of a most satisfactory character, and i t has not been without considerable regret that the long connection lias been severed.

But we have felt oflate years that the requirements of our growing business have necessitated that we should get into reciprocal relationship with an influential Bank having large representation in the English provinces. Such representation Messrs Glyn, Mills, Currie and Co did not possess, being London Bankers purely'. Negotiations were opened accordingly with the London City and Midland Bank, Ltd—the largest Joint Stock Bank doing business in Great Britain at the present time. These were satisfactorily concluded and the account was transferred to our new Bankers on rst March last.