COLONIAL BANK

Nelson Evening Mail, Volume XIII, Issue 192, 10 August 1878, Page 4

COLONIAL BANK

BEPOHT OP THE HATTF-YEAftLx" MEETING,

The Chairman* The Directors have very ereat pleasure, indeed in laying the successful transacting of the last fealf yew before you. I think there are few -of you hnt will agree with me that, tbpnunrefn which has lately attended this institution bt»s been t> e) y prest. I have no doubt but 90me grumbling may thke plnce that a dividend W eight per cent, was not declared—some did begm to grumble-- bm I think nil are now perfectly s^tisfipd that the Di- i rectors nrtßfl judiciously in recommend- j ins n dividend of only seven pet Cent.' 1 flea eure, that it in the wish of every sbureholder (hat the Bank should be strengthened materially; Such has been done during the inst half year, and it produces Btahility and causes people to deal with the Bank. It brings busictesß lo us, and probably confers a far greater benefit upon the shareboldfrß than the payment of a larger dividend. No doubt, geutlemen, we could easily havo paid eight per cenf., but there was one item whieh hal not been disposed of. For some time pa9t some hnve thought that the Bank should have rebated bil.'s. Now, it is necessary that every One should be satisfied with the Statement put forth to the public. In this case, the Directors have lak-m the matter in hand, and before paying a higher dividend have, out of the very ample profits for ihi* b alf-y ear, s< t aside the sum of £4518 4* 91 to i>bat,« bills. Thnt has only to be taken fur oncp. Very lif.le ad» ciiiionul expenditure will be needed, in this direction in the future, us business inorcHees. Then wo have written off £2000 tor Bank furniture and stationery. This is a large item, no doubt, but seein? thnt we have shifted into other premise?, and that some of our fittings wili repuire to bs sacrificed, we are acting judiciously in making ample piovci!'!! i<>« "licit an it- in Anoihrr Itom is j^'O.ooo. wi.KU i-, I;, hi C'i.jiK'l to ihi siHiw iui..i ; £30(10 of ila; amount, you will m-e, U. b^n laki n froroh to profits for the half yeiir. The other item uf £17,000 li»jS been realised from shares dietributed amongst the shareholders at a premium of 10a each, There ib an additional sum yet to come in from this source, as a number of absent shareholders have not had time io take up their share?. When they will h«ve done so, there will be about £1,000 more to be added to the premium on the sale of shares. The Directors having thought that, considering the rapidly increasing business of the Bank i the time, ha J arrived when these shares Bhould be allottn] to the shareholder*, took steps to distribute them amongst the shareholders at the rate of one for every five each shareholder held. This distribution left nearly 3,000 shares unallocated and it was resolved to sell these by tender. I oca sure that the shareholders will be happy to hear that lor thesp 3,000 share Btbere were nearly 23,000 tendered for, the average price price beinjj 13* 7| premium on each share. I think that the number of tenders received for these shares shows the position which the Bank holds in public estimation, It must be satisfactory to ths shareholders to sea thnt fhe reserve fund, which in June 1877, stood at £12,000, has increased so much ihat it stands at £36,000 to-day. Now, gentlemen, as to the balance-sheet itself, I need not detain you loog in making any remarks upon it. You will see for yourselves that there has been a very good increase iu the business of the institution, and that the deposit account, which marks the stability of the Bank and the confidence which the public have in if, bag men very satisfactorily. During the half-year the deposits increased £178,000, but looking at it properly the advance in fhe deposits for the year amounts to £318,000. I think that this is very satisfactory indeed, seeing the demand which has arisen for money in Australia, where I inducements are held out for it and very high rates of interest are offered. Then I may point to the items on the other side. You will see that " Bill discount bills receivable,' &c. , have increased very much. Under the item " Bills receivable " we have had large exchange operations, and which have gone, eome way, to swell tha item of "Bills payable and other liabilities," In regard to the " Property account," I am happy to tell the shareholders tbat the Directors have secured one of the best sites in Wellington for offices. Previously, we bad only a leasehold there. At the time the Directors purchased the site in Wellington they thought thay were paying pretty high for it, but a section alongside or it, and not so well situated, had since bsen sold for £20 a foot more than the Bank paid for its site. So we have every reason to be satisfied, and, besides, the Directors wili be able to diepose of eome of the land at a price considerably in advance of what they bad paid for it ; bo the Bank will be able to sit at a very reasonable rental. We are also getting into particularly good premises and a good position in Auckland. Tbat purchase have also gave to swell the " Property account." As far as I can see, we have made very good property investments indeed. I may say gentleman, there have been considerable enquiries made as to whether tbe Directors would allow any shares to be transferred to London, I may say that it is the unanimous opinion of the Directors, and I hope it wilialco be of the shareholders, tbat none of tbe 200,000 shares now on the

Colonial ilegiaterfl shall ba allowed to oe transferred to London.— (Applause.) « IB necessary, gentlemen, tbat we should keep the shareholders in the Colony, because by doing so they will have an interest in pushing the Bank forward,, tam glad fo hear so many shareholders approve of this, and t hope that you will all do your best in the interest of the Bank, because, with n little more energy on your behalf, we | could do much more business with i much more profit. In fact, we are in a position to do all the buslhe&s which t which may be offered h us. When it becoraPß necessary to place anv shores upon the London market, the Directors »re authorised to put 50,000 on the London register. It is not necessary to do that now. Tbe time may come when it will be necessary to do so for the purpose of increasing capital; but men the Bank should reap the* benefit instead of allowing any of the 200 000 shares to be transferred to London. In Dunedin at the present time £2 18s is offered for shares, and I thick, (hmfore, that every shareholder would b* ngbt in looking forward to a large gum being ißilised from the sale of. the 50,000 shares to which I have referred and which would have the effect of immensely swelling our reserve fund. Therefore, if any sharps are to be put upon theLon.iou market the Bank's Reserve Fund should have the benefit, of thp premium.- (Applause.) Ido not thick that I need detain you any longer, but if there be nuy gentleman who° wishes to a^k any questions in reference to the balanci-4(ie«t,l shall be vtry pleased <o answer them. I will therefore conclude by atking the shareholders to adopt tbe report which is now submitted to them by the Directors. Mr G. G. Kussell : I havi much pleusure in moving the adoption of the report and the balance-sheet which has been subjoined to us in so very cloar and intelligible a form. The result shown must be very satisfactory to fill of us, so there is very little for me (o my in support of it. The increase under the various fVa s embraces the business done by tbe Bai<k during (he last halfyear, a ,)d shows that this institution is taking up a positiou very credituble to itself amongst the Banks of New Zealand. Mr M'Leao has explained to us how the balance, of the 200,000 shares was allocated, and no doubt the Directors, is issuing tbe balance, saw that there was a profitable outlet for the additional capital with the increasing business of the Bank. With ihe exception of the profit frnrn these snare*, I believe thut the Bank owes it3 position to no exceptional circumstances, but to the natural growth of a well mnnaged Bank. Ido nol think thnt I need say any more, and I ask the shareholders to join with me in seconding the adoption of the report. The motion was carried unaumoualy. ELECTION OF DIRECTORS. The Chairman : There ore two vacancies on ihe Directory, and as there is no opposition to the candidates it only requires a form*! resolution to elect them. The Hon. Mr Reynolds : I rise to propose that the Hon. Mathew Hoimes and Mr John Thomas Wright be elected Directors of this B*nk. It must be satisfactory to the Directors who had the nominating of these geoilemen, consequent upon the resignations of Messrs L'lrnnch and Rattray, to fiud tbat they have met the views of the shareholders, as is shown by the fact thai there are no other candidates for the office of directors. It is a delicate thing to speak too much in praise of these gentlemeu, as one of them is in the room. No doubt the Directors have carefully considered the matter, and believe that these two gentlemen are the best suited to attend to the business of the Bank, I therefore move —"That tbe Hon. Mathew Holmes, and Mr John Thomas Wright be elected Directors of this Bank." Mr Jamks Fulton : I second the nomination of these gentlemen. The raotun was unanimously agreed to. COMPLIMENTARY. Mr S. Wilson : I have much pleesure in proposing a vote of thauks to the Directors and Officers of the B*nk. As regards the officers, there wbb a little dissatisfaction at first about the bigh salaries that were given to them. I I think, gentlemen, tbat the bnlanceebeet shown to [you to-day will prove to you that it is better to give good salaries to good men than to get inefficient men for nothing. I think that, as far as the officers are concerned, we have reason to be glad that we sscurad the services of such men. In regard to the Directors, you have only to look at this building and at many others which they have secured for us in order to be convinced that we have the right men as Directors. I think that we should be very well pleased indeed, and I believe that Mr M'Lean, our chairman, was rather modest in referring to the purchases which they had made. I am convinced, from information which I have received, that 50 par cent,, profit coul.i be got on the Wellington purchase. I shall not say any more, but will conclude by proposing a vote of thanks to the Directors and officers of the Bunk. Mr R. Gillies : I rise to second the motion proposed by Mr Wilson, and I do so because I believe that the Directors and officers of tha Bank have done their best, and I think tbat tbey deserve substantial thanks for what tbey have done. At tbe same, as a shareholder — I trust shareholders will pardon me — I cannot go bo much into lavish praise in reference to this matter.

For ray own part, when I look at the balance-sheet before us to-day, I cannot sea that it is so wondrously advantageous as it has been represented. Ido not wish ly any means to throw cold water upon the institution^ and shareholders will recollect that iiprjn n previous occasibu— at one of the first meetings — when a shareholder used remarks rather detrimental to the institution, that I was the shareholder who stepped forward and pointed out that the institution was just being planted and that it would be wrong to pull it, up by the roots to see if it wns growing or not. But I think that it is now strong enough to bear a little criticism and I must say tbat, looking at the amouut of money which we have had at our disposal as a Bank, I doubt, to use a Colonialism, whether or not there is eo very much " to blow about " being able to show two per cent, on a million and a quarter. I do not think that it is very much "to crow over." lam not prepared to say what tho cause is, nor is it my position to do so in any slmpa or form, but in thanking the Directors and officers of ihe Bank, I would juat point, out lo them that there is room for improvement when we compare the Bank with other financial institutions.

The motion was carried unanimously. The Chairman .- la returning thanks on behalf of the Directors for the flattering manner in whic v < Mr Wilson proposed his motion and for the criticism bestowed by Mr Gillies, I may say that we are very glad indeed to find people criticise, as it is a healthy sign. I may be pardoned for taking up a few minutes in answering what has been said by Mr Gillies; and, first of all, in reference to his statement that we are not making more than two per cent on the capital which we have at our disposal I may point out to him that the London and Wastmiuster Bank, which is one of the oldest, does not make more than one half per cent. I say that we will stand comparison with many much older institutions than our own. For ihe half year ending June, 1877, our profits had increased £7000 over those of Jun-, 1876, but this half year they had increased £7ooo over those for the previous half year 5 so I hope that you will be satisfied with our progress in that way. We have always done our best, and will continue to do so, and I think that the balance-sheet will bear criticism in any way you like, as I firmly believe it will stand it lam sure that the institution will, with the help of the shareholders, continue to grow, and it is to their interest to push ifc ahead and do the be3t they can for us. Before long this Bank will compare favorably with any similar institution in the colonies. Gentlemen, allrw me to thank you sincerely for the vote which you have passed.

MrCowie: I rise with great pleasure to thank you on behalf of the officers of the Bank for the vote which you have passed. I feel sure that it will be regarded by every ofßcer iu the service as a mark of your confidence and faith in us. We are eudeavoring to do our best, with the desire as far as possible fco please everybody. We are endeavoring to make the Bank strong and safe. But large profits can only be made by incurring risks, and that I am not prepared to recommend. — (Applause.) The Directors, in working the Bank upon a safe and sound found" ation, and in adopting the course they have in regard to the Reserve Fund, are carrying out a. policy the benefit of which you are now reaping m the value of your shares. On behalf of the staff, I beg again to thank you most cordially for your vote. The meeting then ended.