BANK OF NEW ZEALAND.

Manawatu Times, Volume III, Issue 89, 5 November 1879, Page 3

BANK OF NEW ZEALAND.

Th« half-yearly general meeting of shareholders was held yesterday, John .Logan Campbell, Esq. (Chairman of the 3oard of Directors), presiding. ' There was a large attendance of shareholders, ' ■ The G-enebal,. Manages read the advertisement announcing the meeting, also the half-yearly report, as follows— THIBTY -SIXTH RePOBT OP THE tiiBECTOBS oe the Baste of New Zeaeani)," 'to THE HaLF-YEABEY ChSNBBAL MEETnTG OF THE PROPUIETOBB, HELD AT THE BANKING-HOUSE, AUOXLAND, ON THURSDAY, /238 D OCTOBEE, 1870. The Directors beg to submit the result of the past half-year's operations, which >yil), no -doubt, be considered satisfactory.. . . : * The net profit at 30thJ3ep- • tember, after making ample • appropriation for depen-' dencies, considered bad or doubtful, an.d the usual re- : dujetious in;B(Mil( premises and furniture . accounts, amounts to .., ...... 4?69,038. }4 Q To which has to be ad'ded — Premium ou 25,521- New Shares taten upj part of 27,500 issued under au,thority of the Halfyearly meeting of the Proprietors, held on the 29th October, 1878' ... 180,613. 15 Q Balajn^e faom half-yeu* endod 31st March, 18.79 9,753 11 8 Muting a total ayailable ' for dxvision.of ... ...^25Q,406 1 5 Which it is now recommended be appropriated as follows:— To payment of dividend at the rate of' 10. per 1 cent, per annum ...40,010 10. 0. To bonus Qf 5s per share, equal to 5* per cent, per, annum. ... 24,505 5, 0, • To proposed - ; " addition to resFe.fund 180,000 0 0, To balance ' carried to '■'■..-. profit and ' loss new.ac- , ; . i count ... 5,8j90 6 5 ■' ' :'■': — —-£259,406 15 :• The dividend and bonus willbe payable !at Head Office, Auckland, -on , Friday, the 24th October, and at Branches on receipt of advice. '■ For the Board of Birectbra. ' J; Ijoga^ Campbell, President. i A&GBEGATE BaLANOE-S^EET O.?, TH,E. BANK ; ; of New Zealand at 30th Septeaibeb, 1879, nrcLTTDiira LoifDoir Office at 31st July, 1879 :-— ' " '■ ". , liabilities.

', ■- • ., ; -' : '••■■■■- ■( x Josjiii^ L. "V^iisoSiv; The Gh^ibMAN", m moving, the adoption 'of the report and balance-sheet, "said :— ; G-entlemen,— ln rising to move the' adop--1 tion of the. report arid balance-sheet, which has just been read, the usual pleasant duty *is assigned to me of congratulating share- ; holders on the success .with which ... the 'Bank's business has been conducted during the last hatfryear and 'tli& ; Kalance-sheel afford^ {he best^evideuce of the Bank's plo'sitibn- When I'last had Ih c pleasuve-of .adclressing jou from this chair I took oc- : cusion to- recount certain, adverse influences" which then existed, and which for the fimo being had' unfavorably affocted colonial iri- . ierests; B'ul'we had-not then fully realised . tifgeffecfs of the disasters of the previous period, nor did we then amicipate such an i.unforttinate result; m Ijhe agricultural operations of this colony, nor such a Jong; continuance of low prices t.f wool and. cereals whiefi has since prevailed. The. diminished ; spending" power pf the people, the contrao- ; tion of Goyernraent works expenditure, the necessity id provide liirge. Veiaittaiioes . to jfcnglahd for public and pmate liabilities ofc the colpny^iay^ all had a te^'&^mf-^io' increase "the^pressure r bh our inone|tai i y ihst jtu* fiion^^ But the absence of any heiivyfsilurej) sufficiently prove the readiness with 'which these . institutions responded to the de-

mands made upon them, and is the best proof of the general soundness of the commerce of the country. As a consequence of. the lavish orders' which a previous season of : unexampled prosperity had induced importers to send, to England, and the diminished consumption from the causes to which I have alluded, |stocks have m many case accumulated to an inconvenient extent ; but the corrective measures which have now long been m operation are already producing an appreciable effect, and wo may confidently look at an early date to have this temporary difficulty fully remedied. The past season has been one of unusual severity, to agriculturalists, who m many eases) were overburdened by speculative purchases of land ; and tbis, m conjunction with the bad harvest and low prices, has caused not a few failures among tbis class of the com- \ munity. But th.ou.gh. numerous, they have not involved any serious amount and with improved prospects for this season,— in the exceptionally promising condition of the growing crops, and the enhanced price of "wheat — it may be reasonably expected that much o_f last season's loss to our farming population will this year be recouped. As a^ecting this institution, although we have as usual been exposed to. exaggerated reports of heavy losses, I am happy m being able to assure that these have not exceeded the average, and ample provision has bee.n made for. them. When I la.st addressed you I reported the result of the issue pf the new shares v hich had been on^y partially completed. The final result as noted m the balance-sheet, is that of the '27,500 shareholders we are left 1979 which^ lias not yet been offered for sale but which" the Directors will take a favorable opportunity to. realise. From the public prints shareholders will have' been made "aware ; that we have given notice of our desire, at the end of six months from *he Ist instant to terminate th« existing agreement as to ; the Government account, the terms of which have' proved of a disadvantages charI after. Beyond a mere acknowledgment of our notice, no indication has Leen received of the ialentions of the Government, which is sufficiently accounted for m the present political complications, which practically have brought public business to a stand. While prepared for a severance of the connection, which, I may say, on the whole/ has existed so. satisfactorily during eighteen years, we have intimated that we are willing to negotiate for a continuance "of the account, if terms can be satisfactorily arranged. • The Directors have given much consideration to this subject, and m the course they have adopted are assured they best conserve the interests of shareholders. Kofernng now to the figures m the report' and balance sheet, shareholders will, 1 am sure, be pleased to find that, notwithstanding the largely increased amount of capital on which dividend has to be paid, the profits of the last year admit of the usual divicTand and bonus, and we are able to carry forward to next half-year the s\yn of £5890 6s sd, after crediting- res'erve account with £180,000— the premium on the issue of the new, shares, as far as these have been floated. The anticipation of a reduction m dividend has had' a depressing influence on the prices of shares, but -the Directors are gh,d to assure shareholder's that although the net profit shows a diminution op, Is<}' pj-jmaus' half-year, owing to the increased 1 provision which, the present 'condition of the colony makes it expedient to put aside for possible losses the usual dividend and bonus is confidently expected to he nmiu^aihed. The imtoward state of the colony during Cbe past six months, and the fact that during that portion of the year business is always less active than during the Vob v l an"d grain season, will sufficiently account idi\ the diminution which appears m some of tlie items m the balance-sheet. Xbcre has been a reduction m the nole issue of about £00,000, and of" over £800,000 m bills payable m, circulation, which, although resulting- iivle^a^exT -profit, may. b.Si ttL'tfeptttt'as the best evidence' of the' measures adopted by importers to reduce their too heavy stocks. . There has been a reduction m current accounts of a little over a million, which. is largely due to. fluctuations m Government b.vlaucei, the reuxiiniler being the natural outcome of the general depression caused by "bad harvests low prices, and reclamations on "consignments of wool and grain. The uondiluuiuf the home market having been favorable for the realisation of securities, advantage was taken of the opportunity to realise the bulk of the Government bonds held by us ut last balancing period, and the proceeds have been temporarily utilised m strengthening our coin and cash balances at bunker's, pending a favorable, opportunity for re-investment. O.ur coin m "the colony at da.c of balance amounted to about £900,000. Our lessened liability m London, accounts for the diminished amount of bills receivable ar^dj securities held there. The contraction of our advances, it will be seen, approaches thf ; decrease m our current account, to which I have already referred and is m a great measure the effect of largely-dimini-shed purchase of bills m London drairn on the colonies — another evidence of. the wholesp.ni* and timely check given to a previously too extended importation. Shareholders will have reason to be gratified at tha lurge addition proposed to be made to our reserve lu.n.d, yvhich will now stand at £555,066 and to which' it will be the .policy of the Board to continue to make such additions frdni time to time as our profits may warrant. Every addition to this fund not only increases J,he intrinsic value of your shares, but increases the divi-dend-earning power of the Bunk. We have be?n asked from time to time whether there is any special investment of this fund. I need hardly tell you that there' is no'uni'formity m the pvactice of Banks on tbis subject, but the majority follow the course we have adopted of making no special investment of the reserve fiii.d.. . Practjiqally, although it,sw,ess, ne general' dividend earning payer of the Bank, vre usually hold Government securities to a larger amount than lb,e reverse fund, and, though at present this is not the ease, the deficiency is more than reprosenti-d by the lnrgely increased amouut of coin and cash at banker's. I assume that the real purport of the question i3, Does the Bank hold such reserves, "or immediately convertible securities, as offers reasonable protection m all l'contingencies .? and I tfn'nk no one mil doubt this if tli a balance-sheet put before you tod^y i? examined and understood. Another question Ims been asked : Does the Bank hold any shares m any unlimited company ? The answer is simply that it most certainly does not. It has a^a.b.e^en, askecfif it is intended, to -register under the Bank Act, wh'iebiis now being considered m England but as our liability is already limited unr'er an Act of incorporation, and we have no Ujformationabyeti of the provisions oftlie .proposed B.ill, no consideration has been given to the subject. It remains for me now on^y-. tjo close these remarks, and I may be permitted, m retiring m ordinary rotation aS one, of. your Directors, and consequently vacating the President's chair, to embrace the present opportunity to express tho conviction I entertain, that the severe bheck which Ijhe colony has- sustained dnriac the year will be afcfcendc-^j with the most beneficial result to the oorarriunity generally, of tending to lessen, 'the, overspeculative spirit \sfhioh previously existed, and to lead all engaged "m business to confine'theil operations within more legitimate Umite. We have m the colony of- New

Zealand every element -which, leads to and secures prosperity. Climate alone would ensure its future greatness, for we know by statistical proof that no . country m the world has greater agricultural r.ud pastoral capabilities. And it is the colony upon which both the capitalist and the labourer m the mother country now look with longing eves as the refuge where to find a new field of enterprise, and create a new home. With the progress of the colony, which nothing I feel assured can retard, will also progress this liistitutiou, and should you at a future time again do me the honor of electing me to a seat at your Board, I have no misgivings but I shall then find this Bank still maintaining, under my successor, the position, of precedence which, lam proud to say, it held when it devolved upon me to occupy this chair, and which it still holds on my retiring from it I now beg to move, " The adoption of the report and balance sheet." — New Zealand > J^erald, October 23rd.

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By. ."'"' ■":':■ '■ £ ' s. d. Capital l£t,do6,QOO ; ls v ss i ■ " £19,790— par value of <: •1,979 New Shares of £10 -"•• • " each, held iv reserve ... 980,2.10 0 0 Beserve Fnnd ...'.::'..".., 375,6'Q0 0 0 -JCSFpteincu'Q.ulaticn. ..".... 465,165. 0- 0 Bills payable m circulation 1,486,557. 0 5 Deposits and other i\ab,Ui : - --tioa.;/ ..!^:.r .;.-'...': U 6,658,287 13 8 Balance, of profit and loss 259,406 1 5 y ; £10,22-4,625 15 6 •■-:• . -ASSETS. - ;• - Cr f . " £ s. d. Coin and cash, balances aij Bankers... .... i.. Jl 2,054,048 19 4 Bullion, o^ hand and m transit... 214,075 10 0 Government; securities. .;. 200,000 0 0 Bills receivable, , and se^ ■ curitiesiii London .''. 884,726. 611 Bills discounted, and other debts due to the Bant,*. 6,685,624 1 16 6 "Landed property, Bank ', premise?. '„,... ... 186,54? 3 3 ■ . £10,224,625 15 6 BRpEfC. MD XO ; S8 ACCOUNT. Dr. ' ' " " •" £ s. d. iTp dividend ,on 98.Q21 \. Shares, of . £1Q each, at " , 10 per cent, p^r.annnm^ 49,010 10 0 To bonus at rate, of ss. per . . share, equal to 5 per . i cent; per annum .„ ... 24,505 5 0 To proposed increase to reserve fund ... ...... 180,000 0 0 To balance carried to profit . and loss, " new account" 5,890 6 5 \ v - £259,409 1 5 Or. . , £ a. d. By balance from half •year; • ended 31st March,. 1879! 9,^53/11 8 \ By pretniuoi on 25,521 New. Shares taken up, part of \_27,5d0-issued under "au- \ '.-thorityof theljalfj-'jearly \. General Meeting of the, Proprietors^ helcl on the' 29tli Gctbbor, 187-2 . .'.- 180,&ia 15 0 By net profit' for iialf-yenr • ended r 30th September, :■ 1879 ... ... (> ... ... 69,038 14 9 . '■'/. . £259,40a 1 5 ■"•'.-:. EESSaVE TBXD. • Dr. ;'■>-'•. £, s. d. (Tobalaiice, .... ;.. ... v555i000 0 0 l -. ' ■:- '■'■■■■ : &&s<i,(m a o ... • Cr. . - ■-..;•. ... /.£,-.. 8. d. By balance from half-year / 5 31s^ '%^h; iß7.9':' ... /37 ; 5,000 0 0 By proposed increase .'. . 180,00 d 0.0 ' ' £555,000 0. 0 Audited.' '■'■■/ ■' '■'