WELLINGTON NEWS

Hokitika Guardian, 14 June 1929, Page 3

WELLINGTON NEWS

BANK OF NEW ZEALAND

(Special Correspondent.)

WELLINGTON, June 12

The Bank of New Zealand is the Dominion’s hank, and it is an institution of which the country has every reason to be proud. The State is directly interested in the Blank thro gh bolding shares, but the management of the institution has been in the hands elf trained bankers who have by their careful and prudent management made it not only the principal hank in New Zealand hut also an institution whose credit and prestige stands high in the British Empire. It was fitting that the general manager of so important an institution should be honoured, and the knighthood conferred on Sir Henry Buckleton gave immense pleasure t'bank officials generally and the staff of the Bank of New Zealand in particular. The Bank lias just issued its balance-sheet for the year ended March 31st last, and the document attests onco more that the institution is as sound and solid as could he wished, and is a consistent profit earner. The profit for the year under review is £912,954, as compared with £341,873 in the previous year and £847.671 in 1927. The profits of the past yenr have Been swelled by certain recoveries and provision for doubtful advances not now required. The dividend for the year is the same as for the previous year, and the State receives £244,433 by way of dividends, and in addition the Bank paid £333,866 in rates and taxes, and furthermore telegrams and postages accounted for a fair sum. Could a State bank have done better, or even as well? If all the other trading affairs of the State and the municipalities were' as well and efficiently managed as the Bank of New Zealand “everything in the garden would lie lovely.”

The latest balance-sheet shows asset* at £54,561,000 and comprise coin and cash balances £7,172,140, money at call and .short notice, Government securities and other accounts in London £9,097,167, New Zealand Government securities £4,008,886, Australian Government securities £1,227,215, hills receivable in London £3,362,205, bills discounted £1,336,073, advances £21,505,379 and other smaller items. The reserve fund now stands at £3,425,000, the note circulation totals £4,290,793, and the deposits amount to £33,939,654. COMPANY RULE FOR CITIES. The joint-stock principlje plays so widespread a' part in modern life that its appearance in city legislation will cause little wonderment. It is in the Irish Free State, where many interesting and valuable schemes have been given a trial during the last few years, that the departure lias been made. In 1924 so inefficient and reactionary had the conduct of municipal affairs become in Cork that the Minister for Local Government dissolved the Corporation and vested the supreme control in a City Commissioner. Something was done with a London borough and the Sydney Corporation. The result of the Cork scheme, though very beneficial, was not ideal, liecause it could not enlist the active co-operation of citizens nor cause them to assume a proper share of responsibility. The happy medium lias now been secured by the passing of the Cork City Management Act, which has just come into force. The mechanism of the new Council, is described as the machinery of the limited company, with its hoard of directors and a managing director, applied to municipal life.

The directorate is represented by 21 elected members, who are responsible for the levying df rates, the borrowing of igoney and the formation of policies, while the managing director finds his double in the city manager, who prepares financial statements, has control of all officials and appointments, and .assumes direction df the functions of the Council generally. Thus the company analogy is complete.

City administration as a business proposition has been tried in America and Germany, and has been, on the whole, quite successful, but there lias hitherto been no such instructive combination of the democratic and autocratic principles as the Free State is now trying out, in Cork. Municipal reformers everywhere will follow its developments with keen interest. There is no doubt that the present system of municipal administration in the Dominion is capable of very great improvement, and the Irish scheme may turn out to. be the ideal.