WELLINGTON NEW

Hokitika Guardian, 25 June 1929, Page 7

WELLINGTON NEW

BANK OF NEW ZEALAND. (Special Gorrospondent.) I _____ WELLINGTON, Juno 23. The annual meeting of shareholders of the Hank of New Zealand is always an event of importance to the Dominion, for the Chairman sheds a little light on the hanking and financial conditions of the country. At the meeting on Friday the Chairman (Sir George Elliot) handled the bank figures in a manner to convince t|io 7>ub|ic that the Think of New Zealand is contributing and is essential for the econ omic welfare of uie Dominion. The profits from the bank’s business in the Dominion have fallen off considerably, hut this has been due to special circumstances. When in May, 1927, the Lank raised the rate of interest on overdrafts they made a corresponding Increase in the interest rates on fixed deposits, allowing 5 per cent on twoyear deposits. The high rates wore in "force until July, 1928, and in the meanwhile many millions of interestbearing deposits were placed with the banks, and some oif those deposits are still current.

The overdraft rate which was reduced in July became immediately effective. so that the Bank was paying a lcbt lively higher rate for deposits than u.is being obtained for advances. The position' will be adjusted presently when the high interest fixed deposits run out. The Chairman was justified in pointing out that the State’s connection with the institution while adding to the prestige of the Bank is directly profitable to the State, for the latter received during the fiscal year tlie sum of £533,289 which would cover interest at o per cent on over £10,000,000. The references made to the staff and particularly to the General Manager, Sir Henry Buekicton were fully justified. The honour conferred on the General Mangner has (net with general approval and those who have hpd business, relations with Sir'Henry, not fail to be impressed with his Wide banking knowledge and his general 'desire to maintain the solidity and usefulness of the Bank of 'New Zealand and make it of real benefit to the Dominion.

While Sir George Elliot confined himself to dealing with the affaiis of the Bank itself he was lucid and interesting, but when he essayed to deal with general matters lie floundered badly} and gave one the impression tfijit lie was endeavouring to feed the community with mildewed straw. After dealing with the well-known topics of luitter and cheese, frozen meat and other primary products, lie remarked That “notwithstanding the .fact that the export value of our primary products is satisfactory, farming is not developing at the pace one would expect. Farmers state that notwithstanding the number of persons unemployed, it is most difficult to obtain efficient labour at. anything like the wages they can afford to pay; developmental work accordingly is being retarded.”

This is true enough, but there can be no remedy so long as men can earn more money in - the towns and cities and on relief works than on the farms. One can fully agree with the opinion that “ for an increase in her population, for nil improvement in her secondary industries and for the filling of offices and warehouses in her somewhat overbuilt ciLies New Zealand must surely look for an increase of her exportable primary products.” Sir George Elliot advanced better use being made of the second class land in the country and there arc extensive areas of that class of land. He is of opinion that the graduated land tax is a bar to the development or this land, and hints that exemption from taxation .might help in the se’tlement of such land. There is an objection to exemption of taxes foi these should be borne by the whole community. If such lands were offered in big blocks to joint stock companies with adequate capital and every encouragement given the companies to develop their holdings some good may result. But the whole trend of our land legislation has been to cid the land up into small area and place men of small, or of no means, on the land and expect them to develop it, This second-claSs land will require to be handled by large capitalists. The Lnairman also had something to say respecting customs tariffs and suggested that a conference of representatives •from the various parts of the Empire should be held to arrange “ more logical and more scientific customs tariffs.” l'n respect to such an arrangement Sir George seemed to envisage taxing foodstuffs, which the United Kingdom will never tolerate; even the ‘united “safeguarding” is resented by the people, and the e Act is ceitain to he repealed by the present Government.