WELLINGTON NEWS

Hokitika Guardian, 18 June 1925, Page 4

WELLINGTON NEWS

THE DANK OF XEW ZEALAND. (Special to “Guardian”.) WELLINGTON, June 15. The history of the Bank of Xew Zealand is practically the history cf the Dominion, for it was established about I*9l. In its earlier days it experienced many vicissitudes, and that is merely saying that it shared in the ups and downs ol the new settlement. In 1 SOI -9 I when the banks throughout the world collapsed under a severe financial crisis the Bank of Xew Zealand suffered when the State came to its assistance. That crisis did a wonderful amount of good for it focussed attention on bankin'; and there has followed since a scientific system of banking but adapted to the needs of the country. Even if after the crisis of 1*94 it was some years before the bank got on to its feet as it were, and the unfortunate ordinary shareholders were again iu receipt of dividends. In later years, the management and direction have been excellent, if not to say brilliant, and the Bank of Xew Zealand can be classed to-day as one ol the sound banking institutions in the British Empire. So far the State connection has not been noticeable in control, and it is to be hoped that it never will be. The State has been handsomely repaid for the assistance rendered 31 years ago, for the State is now receiving handsome dividends Imm its holding of shares. The balance sheet lor the year ended March 31st, last which is to be submitted to the shareholders

oil Friday discloses excellent results. The gross profit for the year amounted lo C1.77d.3-I, as compared with Cl ,709,2*9 in the previous year, an increase of L’99.1135. and the expenses, including rates and taxes, amounted to C 931.539, as compared with 0952.257. a decrease of .C17.11*. The net profits alter making provision for all had and doubtful debts and other contingencies, the annual donation to the provident fund and bonus to stall, and alter deducting interest on guaranteed stock, amounted to L'*1.9,2*0, as compared with L‘735,83’2 in the previous year, an increase ol C 53,139, equal to about 1 1.31 per cent. There was carried forward from the previous year CdlKi.d!-I, making the total available lor allocation C 1,3-23.709 and this is to be distributed as follows :—Dividend on preference A shares C 30.000: dividend on preference B shares Cl 12,5(10 equal lo 2s 3d per share ; dividend on ordinary shares £400.009, equal to 2s ,3d per share ; ttie sum of C 250.000 is added In the reserve fund bringing that I mid up to C2,275.C00. and leaving to he carried forward C 513,399. The dividend paid to ordinary shareholders is equal to 13 1-3 per cent, and some people would regard this us a very big

dividend, and so it is, but the tact must not be overlooked that the ordinary eapilal is C3.000.H00, and the re-

serve fund un to March 31 last was C 2,325,090 and this was used for earning profits. If the Hank had to pay dividends on the reserve fund as well, it could not pay that percentage. That fund represents past profits which had been withheld from distribution to the shareholders, and serving the double

purpose of adding strength to the hank and earning profits for the shareholders. 'Che Bank of Xew Zealand does by far the largest banking business in Xew Zeaalnd apart from the fact

that it holds the State’s account. The aggregate of the deposits held by the bank on .March 31 was .C30.057.2i53, in which of course would be included the Government deposits, and the advances totalled C19.320.1*0. The note circulation amounted to Cl. 15*.*14 and the coin and cash balance' to C 7.053.319. WOOL STAB I LIBATION.

Wuol brokers anil wool buyers too cannot understand the demands of the Australian Graziers’ Council for a scheme of stabilisation, and perhaps nothing will lie known of the proposal until after the meeting' in Melbourne on .lime 23. It must be remembered that Laura i-. mili in existence, that

i' to say 9 lias mil yet been uuuml up. and it still bolds substantial fluid'. Kir .Lillm Higgins, who is |i> submit the scheme, will probably propose a

continuation of Bawra. and possibly ton

tin' list' nf the funds lor the furtherance uf the .'elieme. which wuultl meet with (ousidiTiihie opposition. If the |in)|)iised stabilising pool is voluntary it will get very pour -upport; if il is (cmpulsnry it me'ins political control aud the adoption ul one of the >i■:>ill planks of the Labour phttlorm. Ihtwrn hud no niiitrol whatever over the last season's clip. Owing to liuaueial stringency it was neeessaty to limit the ratalogues. Prices then soared and an excited demand arose, hut rush orders being filled prices began to fall. The eatalncites were then further restricted. hut still prices fell and flte demands for some finalities practically leased. Eventually all sales were called off for an indefinite period, and yet prices eased. What more could he done by a pool or control hoard or any other kind of organisation. Producers have yet to learn that it is impossible by any cmnhinntion to extort a higher price than the economic value. The manufacturer of the finished product must got a profit out of wool otherwise he must cease business or resort to substitutes. It is difficult to conceive that any politically font rolled pool or board winch robs the producer o! his Ircedom and sets up bureaucratic authority to teach men of loop; experience how to conduct their business can have any other hut a disastrous ending.