BANK OF NEW ZEALAND

Hokitika Guardian, 19 June 1925, Page 4

BANK OF NEW ZEALAND

ANN LAI, MIAAM'A: WKLLINRTOX, June 10. At tho Animal Meetiny ul shareholders, Sir (Ic*< Klliot (.Chairman of Diicctnrs), presided. The Directors' Report anil Ralnncosheet lor the year emleil hist .March were taken as read. Tl,e ( hairman stated the i-:-ue id the new capital, viz.. :$7.1.11U!1 Rrelorence ‘'I!" shares and 7-1(1.<H)!i Orilinarv shares of Cl each, which was amteniplated last year, has heen suceessfllllv rallied t h folly It. The animinl. CIM.IiH, appearing under the heading of "New Share Account " in the llalani e-sh-ect. represents the purchase money si new shares apnlied for up to lllst- March last. Tl'.e Application List did not (lose until Ist April, and allotment. could not he made until a certain time hail elapsed. I nfortuuately, a small number of shareholders neylectod either to take up the share- to which they were entitled or to dispose of their "rights” before the Ist April, and. as the Director. w ere afraid there itiiyht have I eon same misundorstainline in the matter, they decided to extend until the 30th of dune the period in wdtielt the option to purchase or dispose ot the new shares miyhf he exercised. So far. 71:1,117 Ordinary Shares have heen applied for. Shares not applied for by llflth dune, and the fractional shares, will he offered by tender to holders of Ordinary shares on the register on the lllth of duly next. When the new shares are allotted ami l !, e past veal's protits are dealt with. Caoital, Reserve Fund, and Undivided Profits will stand at Cd.'dlff.'JSi. The profit- earned front the ordinary operations of the Rank for the oast yen' amounts to cs |! tyjs.l. In cornpit riuy this profit udh that id the previous year, it should remembered that the year under review is the first coytplefe year dunny which we have find the use of the C1.12.1.11(1!) of new capital paid up on Ist October, Idl'd, and the accretion to the Reserve fund of nearly flitHt.!;lid made a .'ear ayo. Note circulation shows an im 'ease of Ldd.7 Id. Our deoosisl s at the Ralancc dale totalled 1'.‘!0.079.0'i!. as compared with L'dOyKII ,71!) in a decrease of L'-f-2.J:i7. Deposits from the public showed ti satisfactory increase, hut (!oveniinent deposits are TI .ddd.Oll.'l le-s ti.an in the previous year. Of the increase* made bv the puhlie, amountin'' to CI ,ol!o..)fT>, about hall is on Fixed Deposit and the other half is in current account lude.iuos. This increase may l.e regarded as satisfactory. II reflects to some deyroo the prosperity experienced by our farmer customers dttrin;; the past year. Rills payable and other liabilities increase of C,: 19,-190, is an ordinary lilletiiation. Coin, cash balances, and deposits with hankers shows a small reduction of £1 !().O'2S on the previous year's (1 -y-

Money :it c-:i 1! iiml short notice, Gov(‘l'liinent S'eriirities, ami other securities in Loudon are also less hv LAO,OOO. Pills receivable in London and in transit are less Ijy LAI I Mot). New Zealand Government Stuiuilies show an iiK-rcit.se of C'-t'-o, 177. The Cl. I2A,(100 received from the sale of the new shares issued to shareholders during the year, was lent to the Governinent against lnscrihed Stock, bearing interest at A.' f per cent with a currency of ten years. This transaction, and the maturing of certain other Govern UP 1 n 1 Securities, account lor this II in-1 tin t ion. Australian Government Securities at •01,239,090 are less by LAIA.IAB, owing partly to the mattiring of a portion of our holding, and partly to the sale of some of our securities in order to ease l i:p dillicull exchange position that prevailed in Australia during the year under review. Municipal securities show a sic,-ill increase of L'AA.AAA. Advances amount to Ll9.A29.Lsfi. as compared with C 15 ,787,100 at A Ist March, IS2-I.

f.anded property, premises, ole, show an increase of CBI.AGA, caused by the erection of new huilding and hv necessary alterations and additions made during the year. in the world of business and finance two features at least are outstanding since our last Annual Meeting. The first is the adoption by the Allied Governments of the Dawes report, which reviewed the financial position, and proposed readjustments with a view to restorting the economic system. of Germany, giving her assistance in the shape of a loan, and enabling her to set ui> a reliable unit of value in plate of the paper mark, the value of which, as far as exchange was concerned, had completely disappeared. The other great event to which I refer has taken place since the close of our linaucial year. On 28th April, .Mr AVinston Churchill, Chancellor of the Exchequer, announced in his Budget speech in the House of Commons that, from that date, Britain had returned in her international dealing, to the Gold Standard from which war-time conditions had driven her nearly eleven years ago. The im,mediate result of ibis change of monetary policy was that the rates of exchange between New Zealand and Australia, and New Zealand and Great Britain, were, within a few da.\s, subjected to Llio greatest change that had been experienced for many years, the rate for buying bills on London on demand falling from AAs per cent to AOs per emit and for selling demand drafts on Australia from AOs per cent to 7s (id per cent. Hates for other usances, either buying or selling, are in accordance with the foregoing, and all rates are less expensive to the customer than the cost of importing or exporting gold.

While. gold must always hi* considered n yreat factor in stabilisin'.' exchanye. other factor.', will at limes have their effects. Va riation.N in f|Uantities anil prices of imports and exports, rates of interest, new loans, or the payment. oj old ones, will all allect rates of exchange. As most ol your are aware, the reversion to tile cold standard in Britain does not carry with it the immediate return to a cold currency, nor, at the present time, would such a change he either safe or advisable. Tl'.e circulation of notes in Xew Zealand instead of cold can he of no pecuniar'' loss to anyone, saves wastage of the metal, yields an important amoaul in t;:,'. to the State, a ltd enables Ranks to afford more accommodation to their customers than they would have been able to do if, in addition to what is loyally necessary to hold, tio'y were called upon in deplete their n serves in order to provide stiffii iem. et lld tnr circuhit ion. Tie on .port inn of co jld that' must he held, ayninsi notes in i irculation in New Zealand i- one-thin! : as a matter of .act. the ynhl and bullion held in the Ranks in the Dominion at Hist March amounted to 1.'7,7.!7,90t. and the , notes outstanding; amounted to CG.OIU,II! I. DAIRY PRODUCTS. Dunne: the past ten years the output of.dairy produce in New Zealand has had a marvellous development and cows have doubled itt number. Uor the season that ended in 19:; I there were in the D.'minion 1 ~'f 1 _!.W9 cows ol the aye of two veal's and over, and they produced about 7lM)tt.) tons ul butter and 79.1.11 tolls of chee-'.

I.otttl consumption baviny been provided for, the value of butter and cheese exported amounted to till, 1-1-1.-H.'!2 and L'7,.‘tll,'d.ll respectively, compared w ith I"-’, I It*.Hl'.* and Cl’. 1 Do,-73 in I!. 1 I.

Tit:? export returns for the season which is now closiny are not yet available. but it. is anticipated there will he a substantial increase over the liyttres fur la-t war.

Tl'.e it verity,■ price realised pvr lb of butter for .19:! I was U- 9,;d. coiepaii'd r.tti, I I d m 191 !. It i- cs! minted that the averaye annual vic'd ul butter-lat per cow in New Zealand to-day is l7H!hs., ioiiinared with an averaye of .'UiOlhs., in Denmark and in some parts of A mer-

it is claimed by smite of those who have made a special sillily of the subject that a cow which does not yield more than I'lltllhs of Imtter-fat per annum is not yiviity a silllicienl return for the capital that if represents and the labour that is spent upon it.

It seems to he impossible to determine lilt- value ol a cow Irum a bui'torlal point, ol view by means other than scientific testing, anil such tests give surprising results, tows that look remarkably well have been proved unprofitable. while others that have been disparaged have been found to lie the best butter-fat producers in the herd. WOOL. The sales opened in November last with a sensational rise in the prices for all classes of wool. In the North Island the average price paid i or bale worked out at about Ml. and it was correspondingly higher fur the liner classes ol wool in the South Island. It was afterwards ipiite apparent that these November-December prices were not justified, for, at the following North Island sales, the average dropped to L2A per hale, and again from that to L'lP per l>:i!*-. Nevertheless, the average price lor the whole of New Zealand will nrnlialily work mil at about L 29 per lia'c for' the season. A comparison of this pric« with that of the IPIA-1 I season, via.. L'l2 17s Id gives a ready indication ol Lite wonderful year this has been for the .You Zealand sheep fanner. The number of sheep in New Zealand in I Oil was 21 .'A9A.IOA, againsl 2A.A5.1.789 fur 1021. The figures for 102 A are not yet available, hut it is estimated there may he an increase on the 1921 numbers. The total wool shipped in the 191.'Ll I season was AG0,887 hales, and for the nine months ended 31st March last IA 1,(172 bales bad Loon exported. Owing to the drop in prices during the latter end of I lie season, a pereeniage was held over at the Sales, ami is still in the brokers’ stores.

LONDON OFFICE. During the greater part of last year 1 had the priviliege of being associated with the London Board of Directors of the Bank in London. and I can now personally testify to the tare and ability displayed by tile Chairman of the Baord and the members who are associated with him in the t(induct of our affairs there. Our late Governor-Gen-eral. Earl Jelliooe, as you are aware, was recently appointed a member of this Board, and lie attended his first meeting early last month. I am sure that every shareholder will warmly approve of our decision in making such a happy selection. Wo are fortunate, too. in having a competent Manager of our London Office in Air Robert All'll, who takes the keenest interest, not only in the business of the Bank, hut also in the large numbers of our customers who visit London annually. As a matter of fact, the Bank of New Zealand at 1 Queen Victoria Street, is becoming a regular meeting place for Now Zealanders, who, I know, greatly appreciate the advice and assistance that Air Alill is ever ready to give them. It is otir intention, if possible, to keep t 1 c position of Assistant Manager filled with promising New Zealand officers. who will thus lie enabled to obtain a wider knowledge of banking principles. They will also have an opportunity to meet London hankers and brokers who are famous throughout the

world for their oiitstandiiiy ability and

integrity. Mr D. W. Dawson, late Assistant. .Manager at Auckland, occupies this position at present. He succeeded Mr A. 1.. Hampton, who is now in the Head Odice at Wcllinylnn. It is oar intention also to transfer (erlnin of our Loudon .staff In New Zealand, so that they, ton. may pet a knowledyo of our lmsiness at this end and see the manner in which it U iiutdncfeil.

Ditrin.". my visit to Ktiylaud. afraneiuncitl s were made for a considerable extension to our London premises. This extension will provide for our expamliny lmsiness and enable us to set aside it greater space for tl'.e use ol customers who visit the metropolis. CKXKR VI. M AN AC UR.

The (leneral Manager left in March on a nutch-iiei'ded holiday visit to the Old Cumitr.v. Mr Henry Ruekleton, as you all know, is a most devoted servant ot tin* Rank. Dnriny the (leneral Manager's absence his work is heiny carried on hv Mr I . K. ( ot'kill. The term for which Mr William Reece and myself were appointed members of the Hoard expired on -'fist Marco last, and we were re-appointed fiv the (iovernment. At the lirst meeting in April inv co-directors did me the honour of attain appninliny me io the position of ( hairman. We are ylad to welcome hack to the Rout'd of Directors Sir Harold ReattI'hatup. who has been in Australia for some months on account ot ill-health, and to conyrntulate him on the yood recovery In' has made. I eanuo! close this review wit Ivont leferiiny to the lamented ilealh ol our lute I’riute Minister, William I'Vrytison Massey. With his death there passed a yri-at ii.yu're in New Zcahtud history. I now: propose the aderuum ot the Rcp il l ain I lln la nee-sheet. Mr William Wai.-m. in sei-ondi ny the motion lor the adoption ol the Report and Ifalani e-sheet said the Chairman had touched upon —somewhat liyhlly I tlt ink—-t he linancial resources of tin* Dominion in connection with its expenditure. When, as pointed out by him. ihe value of the exports only exceeds that of the imnnit . by a much 1 1 • s a l.e ai o t t ban i hat re,pill c.l to meet the interest payable outside the Dominion. it is surely time Ini' sensible and honest persons to pause and consider. Much has heen said about the cost of liviuy, and some people will ylihly remark that it is tfa* same all over the world, bill I am not so sure ahoui that and. in any case, I am dealiny with New Zealand only. In addition, to the materials produced, ma tut fact tired and use in this Dominion, it must he acknow ledyed that !n,;s(iu,(mil is much too hiyh an amount to pay for imports dtiri.iy i• i::• year, and there can be no doubt that a very la rye portion ol these imports consists of luxuries, and ibis, to a considerable extent front foreiyn countries, which in the eireumst a tires, are not only unnecessary hut positively harmful to the future welfare of the country. Possibly hankers, as well as ineivhnnis and others, reap temporary benefits from the itresoni swollen trade, but it is surely at the expense of the

community if its income dues not meet its expenditure. Further, if tic.’ high rate of living be allowed to progress, and wages he raised in accordance with it, the production of our exports will heroine so cxpen-ive as to prevent our competing with other countries. In .March of this vear. the Chairman and [ paid a visit to most of the Branches of the Bank in the Son'll Island. where nr found affairs generally in an excellent condition. We found that the oast, bountiful season had had a inusi bciidicial cll'ect, and, speaking generally, our advances give little anxiety. while money on deposit has ini reused materially. We were also inm-li impressed with the manner in which fanning operations were being carried on. l and tallies were unrrnnicd by at crage returns and speculation seemed t<• be rare. The ( hairmaii did not mention our new Note Issue. I am glad to say that we have now received a considerable supply of the forms, and will be able to provide the public more liberally with new notes than heretofore.