BANK OF NEW ZEALAND.

Nelson Evening Mail, Volume XIV, Issue 105, 3 May 1879, Page 2

BANK OF NEW ZEALAND.

The thirty-fifth half-yearly meeting of the shareholders in the Bank of New Zealand was held on April 24th, at noon, in Bankinghouse, Queen-street, Auckland. There was a large attendance of shareholders. Dr. J. L. Campbell presided. The minutes of the previous meeting were read and confirmed. The Directors' report was read, as follows s— Thirty-fifth Report of the Directors of the Bank of New Zealand, to the Half-yearly General Meeting of the Proprietors, held at the Banking-house, Auckland, on Thursday, 24th April. 1879. The Directors have the satisfaction of again submitting to Shareholders the result of a successful half-year's operations. The Net profit of 31st March, £ s. d. after making very full appropriations for every bad or doubtful dependency, and the usual reductions in Bank premises and furniture accounts, amounts to 80,240 2 8 To which has to be added — Balance of undivided profit at3othSeptember, 1878 ... 8,888 9 0 Making a total available for division of 89,128 11 8 Which it is now recommended should be appropriated as follows— To payment of .£ s. d. dividend at the rate of 10 per cent, per annum ...36,250 0 0 To bonus of 5s per share, equal to 5 per cent, per annum 18,125 0 0 To proposed increase to reserve fund ... 25,000 0 0 To balance carried to profit and loss new account 9,753 11 8 89,128 11 8 The dividend and bonus will be payable at the head office, Auckland, to-day (Friday), and at branches on receipt of advice. For the Board of Directors. J. Logan Campbell, President. Aggregate Balance-sheet of the Bank of New Zealand at 31st March, 1879, including London Office at 31st January, 1879J: — Dr. £ s. d. Capital 725,000 0 0 Reserve Fund .... ... 350J000 0 0 Notes in circulation ... 527,777 0 0 Bills payable in circulation 2,246,760 15 2 Deposits and other liabilities 7,715,876 4 7 Balance of profit and loss at September 30,1878 ... 8,888 9 0 Net profit for half-year ... 80,240 2 8 11,654,542 11 5 CR. £ s. d. Coin and cash balances ... 1,724,943 17 3 Bullion on handandintransitu 197,410 1 3 Government securities ... 629,221 7 4 Bills receivable, and securities in London ... 1,389,528 16 1 Landed property, Bank premises, furniture, &c ... 168,857 010 Bills discounted and other debts due to the Bank 7,544,581 8 8 11,654,542 11 5 PROFIT AND LOSS ACCOUNT, Dr. m £ S. d. To dividend at the rate of 10 per cent, per annum 36,250 0 0 To bonus of 5s per share... 18,125 0 0 To proposed increase to rereserve fund ... 25,000 0 0 To balance carried to profit and loss "new account" 9,753 11 8 89,128 11 8 CR. £ s. d. By balance of profit and loss at 31st March, 1879 ... 80,240 2 8 By Balance from last halfyear ... ... ... 8,888 9 0 89,128 11 8 RESERVE FOND. Dr. £ s. d. To balance 3^5,000 o o 375,000 0 0 CR. £ s. d. By balance from last statement 350,000 0 0 By proposed addition ... 25,000 0 O 375,000 0 0 Audited. B. Toxks, S. Brownixg.

Dr. Campbell, in moving the adoption of the report and balancesheet, said : Gentlemen, — In submitting for your approval and adoption the report and balance sheet which have just been read, permit me to make » few remarks upon them, and on subjects in which you, as shareholders, are directly interested. It will be in your recollection that ihortly before the date of our last half-yearly meeting, the announcement had been made of the failure of the City of Glasgow Bank, find there followed a period of financial dieturhance and distrust, such br had not been experienced in England for many years, and from which thera has been a very slow and gradual recovery. The disclosures in connection with this failure shook credit and confidence to their foundation, and it is only a natural result that all bank stocks became more less prejudicially aff ctetJ. When your directors at last meeting asked and obtained your authority to issue 27,500 new shares, the coneequences of the City of Glasgow Bank failure bad not been realised, and could it have been anticipated that this disaster would have been followed by such a calamitous period of depression, the issue would either have been very much restricted or altogether postponed. But the issue has been a decided success, notwithstanding the untoward state of things to which I have alluded, and which, at last, came home to us here in an intensified form. Contending against many adverse influences, it is s source of congratulation to be able to record that, of the 27,500 new shares, only 3984 remain unallotted. Of these, 946 consist of " remainders," not absorbed by the proportions in which the issue was made; and these will be put in the market at a favourable opportunity. Then, there are 1503 shares which are held on bebalf of shareholders travelling, and otherwise beyond reasonable distance, and to whom the directors yet accord a further period of grace. The number, therefore, of shares not taken up, as far as yet known, is only 1535. That the price of shares became prejudicially affected was only a necessary consequence arising from the peculiar janctore at which they were issued. But it is worthy of remark that, as compared with nearly every other colonial bank, the depreciation in our shares in London was very slight, and the local depreciation was sufficiently accounted for by the extent of the issue, the large proportion of shares held io the colonies, and the prevailing scarcity of money. And besides these influences there were others which more or less affected the value of our shares, for reports were industriously circulated that this institution was a heavy loser by the City of Glasgow Bank. So contrary was this to facts, that we have not loit cne shilling by that bank's failure; and when it stopped we only held £3000 of its paper, half of which was covered by cash balances we held, and we bad bills for collection in excess of the total amount involved. Reverting to the figures in the balance-sheet, it will be noticed that notwithstanding the inorease of our capital, it stands the same as in the last report, because the new capital, as you are no doubt aware, was only payable on 31at March, the day on which our books closed for the half-year, Had it been correct to show the increase as capital in the present statement, there could only have been shown the amount paid in New Zealand, as the Australian and London branch's had closed their books at a previous date. As payments from ehareholdersonly became dividendbearing from Ist April, these could not be regarded as capital until that date, and have therefore in the statement before you been incorporated under the heading " deposits and other liabilities." The deposits appear to have fallen £420,000, but t!iis h wholly due to the decrease of Government balances held by the baDk, as there has been an increase of private deposits amounting to £168.000, irrespective of payments on account of capital. It will be observed that ob compared with the last baleoce-aheet, there is a very material increase in coin and cash balances, the directors having considered it prudent to bold larger reserves during the disturbed state of the money market, to which I have alluded. Io the early part of the half-year we therefore fortified our London account allowing colon al balacces to run low, but at 31st March we had made up bur colonial holding of coin to £769,000, and the balanoe wes held in London. The otnount of the bank's advances decreased in proportion to the diminution of deposits. The amount of profit brought to account for the half-year is slightly less than last halfyear, but I may remark that id view of the existing and prospective condition of business in this and adjoining colonies, it has been considered advisable to make more than usual provision for bad and doubtful debts, and should such provision prove overestimated, there will be an early return of surplus to profit and loss. Shareholders will, no doubt, approve the io tent ion of the Board to continue increasing the reserve fund, the directors considering the augmentation of this fund as of more importance than the payment of increased dividend. It will no doubt interest you to know that tba late mischievous competitions among the banks for deposits has ceased, an understanding as to rates having recently! been arrived at, and it may be hoped that that the experience of the p&at may prevent a .re.qn.rrep.ee of a coune of

procedure which must be regarded as alike impolitic on the part of the banks, aa it was subversive of the best interests of the colony. The scarcity of money now prevailing throughout all the colonies must be well known to you all. Variouo causes have arisen to produce this, notably over speculation io land, over importation, losses in stock from severity of last winter, and subsequent floods, short crops from protracted drought during summer, and chiefly, the great fall in value of our staple products. The financial pinch has no doubt proved severe, but it may be hoped that, like other disagreeable corrective remedies, the after effects may prove salutary, and more than compensate for the present inconvenience. It is to be regretted that a more cheerful picture of the present aspect of business in the colony cannot be drawn, but do not suppose (hat I take any gloomy view of the future. A repetition of such a combination of adverse influences as I have recounted need not be apprehended. On the contrary there are manifest signs of progress in many directions, for population and settlement are rapidly increasing, and the resources of the colony are being steadily and securely developed. Let us have but a moderately good season, with that recovery in the value of our products which may be reason ably expected, — let the Governmentexercise o judicious and careful foresight in prosecuting the Public Works policy, a policy which has achieved an unprecedented advancement in our material wealth by the development of our agricultural bdJ paßtoral resources, and the colony, with that vitality and recuperative power which has ever distinguished if, will soon recover from existing depression, and taking to heart the salutary experiences we have just passed through, there is no reason why our prosperity in the future should not be as great as it has been in the pnst. With these remarks I beg to move the adoption of the report and balancesheet as read. The Hon. James Williamson seconded the resolution, and eaid : I have much pleasure in seconding the motion for the adoption of this report and balancesheet. I think that, all circumstances taken into consideration, we have a right to be proud of it. As to the depression that has existed here for some time the chairman has explained the cause of it, and we look with good faith acd hope for the renewal of prosperity in this place. I have seeu a great deal of the interior of the country here, and I do a great deal myeelf towards bringing into a state to produce the necessaries of life without having to send out of the province for them. What is wanted to ensure the rapid prosperity of this part of New Zealand is the completion of the public works undertaken some years ago. Our railways cannot be expected to pay unless they are connected with the rest of the country, I think that with a vigorous prosecution of these public works towards completion — to make us, at all events, connected with Taranaki, would in itself create a remarkable effect in promoting the prosperity of this country. Our chairman has gone ao fully into the subject before the meeting, that I do not feel it to be necessary I should say anything v further upon it, and will content myself with formally seconding the motion for the adoption of the report and the balance-sheet. , The. motion was agreed to unanimously! Colonel Prater: After the very satisfactory report we have received, considering these depressed times, I think we cannot do better than return a vote of sincere .thanks to the directors and officers of the bank for their services during the past half-year. Captain DaJdy : I second the motion with great' pleasure. I feel confident that the Report which has been read here, to-day will disperse- many a cloud that had begun to' gather about the prosperity of the country. For a very long time there has been no such important report emanating from the directors as that we have received today; This result is to be attributed entirely to the directors and officers of the bank; (Hear, hear.) Th,e Chairman returned thanks on behalf of the f ßoard of Directors. " ■ Mr D. L. Murdoch (General Manager) returned thanks for the staff. He said;: The;chairman has.alluded to the troubles of the past season. I may say that there has been a good deal of rowing against the stream. You may therefore understand how welcome it is to Heir from you a word of encouragement lam sure the officers will receive your vote of thanks with great pleasure, and that it will stimulate them to still further exertions on behalf of this institution. This concluded the business of the half-yearly meeting. The rough minutes were read, and the business of the half-yearly meeting terminated.