BANK OF NEW ZEALAND.

King Country Chronicle, Volume VIII, Issue 629, 20 December 1913, Page 5

BANK OF NEW ZEALAND.

HALF-YEARLY MEETING

MONEY MARKET REVIEWED

The half-yearly general meeting of the Bank of New Zealand was held at Wellington on Thursday, Mr H. Beauchamp, chairman o? directors, presiding.

The chairman said that the meeting was held later than usual in order to give ample time for the passage of legislation i 9 now an accomplished fact. The more salient features of it were that the £1,000,000 4 per cent, guaranteed stock maturing on July 19th net will be renewed for a further period of 20 years with the Government guarantee; and the board has authority, with the consent of the Minister of Finance, to raise new capital for the bank to the extent of £3,000,000, of which £1,000,000 is to be preference shares, which the Government is to have the option to take up; and £2,000,000 to be ordinary shares, which the ordinary shareholders are to have the option to take up in proportion to their existing holdings. Thus the new legislation had satisfactorily defined and conserved the interests alike of the bank, the shareholders, and the State. THE MONEY MARKET.

The chairman went on to say: "When I last had the pleasure of addressing" you, I reviewed at some length the financial situation and outlook, and remarked that I was not sanguine of an early return to easier moetary conditions. The views I then expressed have been justified by events, and the tightness in the market then prevailing still continues. The Bank of England rate, which had been reduced to 4% per cent, was raised again on October 2nd to 5 per cent., at which figure it still stands. The rate of the Imperial Bank of Germany is 5 per cent., and that of the Bank of France 4 per cent. You will thus see that the dearness of capital is not confined to London alone: it is the condition of the whole commercial world, and it is safe to say that there is little prospect at present of money becoming more accessible on easier terms The enormous expenditure on armaments shows no sign of diminution, notwithstanding the drain on capital thereby created; but one of the greatest causes of the continued dearness jb the demand from all countries for development purposes. With conditions as they stand to-day, I am bound to recommend New Zealand local bodies, having loan issues in prospect, to postpone any action in the meantime, and to avoid making any commitments for outlay. THE LABOUR TROUBLE.

Mr Beauchamp went on to review the recent Labour troubles, and expressed the opinion that employers were justified in treating only with Labour Unions so constituted as to provide a means whereby the equitable settlement of any disputes that may arise shall be assured, and for thia purpose insisting that the unions must register themselves under the Industrial Conciliation and Arbitration Act, which provides the necessary tribunal for hearing and adjudicating upon industrial disputes. He thought that the farmer had proved himself to be not only the backbone of the country — as has long been recognised—but also the country's guardian and protector, and that the Government are to be complimented on the firm way in which they had des't with the disturbance." BOARD OF DIRECTORS. "We new coma to the actual nusiness of the meeting, the first of which is the election of a representative on the board. Mr Martin Kennedy is the retiring director on this occasion, and, being eligible, has offered himsslf for re-election. As there is no other candidate for the appointment, I have much pleasure in declaring him duly elected. INTERIM DIVIDEND. "The next business is the interim dividend The profits for the half year ended September 30th la it, while somewhat below those of the corresponding half of 3 912, are still very ample, and we have every reason to expect that those for the current half-year will prove satisfactory. The board has, therefore, decided upon making the customary distribution. A dividend at the rate of 6 per cent, is declared accordingly, and will be payable in Wellington on 19th inst., and at branches on receipt of advice." Mr Martin Kennedy returned thanks for his re-election to the board as a shareholders' representative. Although h<» differed from the chairman in regard to some of the provisions of the Act, they would ail join in congratulating him on the Act having nassed in a shape practically almost the same as,that in which it bad been drafted. The loss which they roost of all regretted was that of the increased representation for shareholders on the board. It was well to remember that in the course of the next seven years the bank's capita! and reserves would probably amount to over five and a-half millions. They meant to let bygones be bygones, and the directors would unite in promoting the prosperity of the bank as a whole. In his opinion the shares were to day "of more value than at any time during the last twenty years.