FINANCIER RETIRES

Hokitika Guardian, 31 March 1922, Page 3

FINANCIER RETIRES

AFTER LONG SERVICE

AIR 11. BEAUCHAMP LEAVES BANK DIRECTORSHIP.

WELLINGTON, March 29

Mr Harold Beauchamp, chairman of the directorate of the Bank of New Zealand, is. retiring from that position on March 31st. He leaves by the R.AI.S. Tahiti on April I.lth for America, and will later proceed to England. On his return he will resume his seat on the board of the Baik of New Zealand as an ordinary director. ]X THE HARD TIMES.

In view of the announcement of Mr Beauchamp’s proposed retirement, it is interesting to review the growth of that institution during the period over which he has been connected with it. V gentleman who has been for many years associated with financial institutions in the city stages that in 1898, when Mr Beauchamp joined the hoard of the hank, it was practically in an insolvent position. He recollected a parcel of one hundred shares paid up to £3 •8s Bd, with a liability of equal amount,, being offered to him for nothing, plus a bonus of £3O, so anxious was the seller to free himself from the liability for the uncalled capital. Shortly afterwards the shares were offered for 2s 6(1 and 5s per share, upwards. At that time the discrepancy between the book values ami market values of the assets —then being administered in globo by the Assets Realisation Board—amounted to over one million pounds sterling, and, by statute, the bank was compelled to totally reduce this deficiency before making any return to shareholders in the wav of dividend or otherwise. SHAREHOLDERS’ PRICES.

This was done within a lew years. The Assets Realisation Board was dissolved, and the hank then commended to make returns to investors in its shares. Starting with a modest 5 per cent per annum, the rate of dividend has been increased from time to time until, prior to the passing of the last Act of Parliament, providing for capitalisation of a portion of the reserve funds, and the general rearrangement of the share capital, shareholders received 15 per cent on the par value of their shares, which was then 9(5 13s -Id, the previous liability of 93 (5s Sil per share having been called up. Under the rearrangement of capital just referred to, a further sum of £3 (is 8d per share was transferred from the reserve fund to the credit of capital account, (ho paid-up value of shares, therefore, bring 910. Each shave was subdivided into ten shares of 91 each, lully paid, and (lie last dividend paid on ordinary share* was 13 1-3 nor emit, equal to 2s 8d per share.

ONE OF THE GREAT RANKS. To-day. the Ra.nl-. of New Zealand is recognised as one o! the great banks u| the Briiish Empire, hided, il ro dcsr'ibed as siie!i in a recent issue of the •■SteHst.” worn dealing wiGi the reports of the hanks of the Empire I n the year 1921. A record such as that shown by the Bank of New Zealand is oonsuijerod l>v some to he without parallel in the history of hanking. From time, to time we have seen evidence in the Press of other countries of the gfieat interest shown in Mr Rcauchamp’s yearly and half-yearly addresses to shareholders, w herein he has, at all times, dealt very fully with financial an.! economic matters, not only in relation to New Zealand, but with a world-wide outlook. These comments have been read with interest, not only liv the people of this Dominion, but throughout Australia where Alt Beauchamp is recognised as a leading financial authority—and have received more than passing comment horn well-in-formed financial circles in England, Canada, and the United States. DIRECTOR SINCE 1898.

Mr Beauchamp has been a director of the bank since December, 1398. with • only one break, in 1912-13. the acted i as chairman for nine months in 1:K)»| during the absence oi -Mr !’• de C. Mulct. When Mr Mulct letirod in IDO7 he was elected chairman. He was oil the directorate for the year 1912-13. but when Mr J. B. Reid, who wished to visit England, resigned, Mr Beauchamp was at once appointed to the vacancy. He filled the position of act-ing-chairman for a short period during the absence of Mr Martin Kennedy, and was reappointed chairman in April, PM3. His term of chairmanship easily constitutes a record lor the bank. The post of chairman will be filled at the first meeting of the board of directors to be held early in April. Mr Beauchamp’s co-directors are:— Messrs J. 11. Upton, G. Elliot, William Reece, IV. Watson, and R. W. Kane, the two last-named being the representatives of the shareholders on the board.