Hokitika Guardian & evening star FRIDAY, JUNE 18th. 1920. PROSPERITY.

Hokitika Guardian, 18 June 1920, Page 2

Hokitika Guardian & evening star FRIDAY, JUNE 18th. 1920. PROSPERITY.

The annual statement of tile Chairman of the Bank of New Zealand to the shareholders, the bulk of which is published to-day, reveals a prosperous year for the Dominion’s chief banking institution. The State is so much bound up in the fortune of the Bank of New Zealand that public interest centres very closely in the affairs of the concern. The prosperity the institution enjoys is a. reflection of the condition of the country, which despite the rigors of war time has enjoyed such prospering progress. Measured by its own records the bank has had a highly successful year. In the report the directors recommend the payment of a final dividend of 7tV per cent and a bonus of 4 per cent, making with the interim dividend of 6 per cent, a total for the I year of 17} per cent as against 15 per cent for the previous year. The share market is another indicator of the prosperity of the institution, the forecast of the directors’ report advancing the price of shares, the bulk of wliien are very firmljr held. Last week shares went up to £25 7s. 6d., nearly 30s. ad vance of the previous week’s sales. The financial position of the emfntry is reviewed as well as that of the bank in the Oliairman’si annual statement to shareholders, and tile address is well worthy of perusal. For some time no v tightening times have been foreshadowed, and the Prime Minister has hinted very plainly at a period of financial stringency in this country. There need however, be no alarm at such a prospect. The country is well able to weather the coming storm, for with ordinary prudence, coupled with courage and confidence there is no doubt w'th the resources available the difficult times can be met. As a matter of fact New Zealand has passed through thedifficulties of war time experiences with a minimum of discomfort. There has nevertheless been left a huge legacy of debt for country to bear. But tics obligation can be borne if similar qualifies of statesmanship are displayed here to those at Home. Great Britain is making a truly wonderful recovery from her financial stress at the close of the war. No less remarkable than her almost super human war effort, has been the splendid way in which the Motherland grappled with lier appalling load of debt. Heavy taxation, frugality, and sternly applied economies are pulling Gerat Britain through, and she is regaining very rapidly her proud position as the world’s financial centre. In New Zealand it js being made clear that there will not he any reduction in taxation. The Premier has indicated that lie is going to juggle with the taxation to some extent, but with tile bnrjden of debt and the enormous levy for interest payments, the situation calls for some defined measures to reduce the debt materially with as little delay as possible. While there is no indi. cation that this will lie done, there is an intimation that the Government is going to seek to raise nil additional twelve millions this year. This is not a hopeful sign for practical relief, and is in point of fact an occasion for alarm as regards the immediate future. The country has lately lost its foremost advisers in matters financial, those gentlemen lyho tided the country over the difficult period of the war, and at this juncture their absence is likely to be felt particularly. There is tile opportunity now for a greater than those to arise and steer the country through the shoaling period ahead