COMMERCIAL.

New Zealand Times, Volume XXXIII, Issue 5294, 14 March 1878, Page 2

COMMERCIAL.

The following are the duties collected at the Customs yesterday:— ; ; • •:,< I

The New Zealand Loan and Mercantile Agency Company have received the following telegram, dated London, 27th February:—The wool sales opened on -2fith-inst»at, at the level of 1 -st sales.- The total for--ward will comprise about 262,000 bales, of which the opening catalogue contains 4000 B ome anAthe Couh .. llnental markets are lightly, stocked ; about 12,000. bales have been sent direct to tho manufacturers. - Crossbreds are firmer.- Tailowmarket firm;* '"Mutton ■ 415.. beef 395. per cwt. Stocks of all kinds about 20 000 casks. Wheat flat/- 'Adelaide 625., New Zealand 50a. per quarter/ 'Leather easier-; beat sldes;'9Ja. ■ per lb. i . UNION BANK OF .AUSTRALIA. (From the *' Menoy Market Review," January 19.) ■ The half-yearly meeting of tho shareholders in the Union Bank of Australia was held on Monday, in the Board-room at tho offices. Bank Buildings, 1 Lotnbury.. for the purpose of receiving a report and statement of accounts and declaring .a dividend. Mr. John S. Hill presided, and there was a large attendance of shareholders. ... • . > - : - r 1 -Mr.-W, R.‘Mewburk, the manager, read the report and balance-sheet, which were as follows:-—Sup-plementary reports; of. the directors of the Uniop Bank of Australia, presented at the special general meeting of the .proprietors, .held, on the 14th January, 1878.—The directors have much pleasure in reporting that the accounts of the bank now presented have admitted, after ample provision for every bad and. doubtful;debt, of the declaration of a dividend of 7 per cent for the half-year, and a bonus of 6s per share, being together at the rate of XC per cent per annum; and further, of the transfer of the i sum' of £25.000 to the reserve funds, in pursuance of the policy adopted at: the annual general meeting in July last. This gratifying result of the half-year’s operations will sufficiently assure the proprietors of the highly prosperous posltlon'of the hank’s affairs. Not- . withstanding serious drawbacks, arising from severe and protracted droughts, from a diminished gold yield, and a dull state of trade generally, the various industries and enterprises of the .colonies continue to be steadily developed, and to afford an excellent field for the employment of bank capital. The valued exertions in the bank's interest of the general manager, of the other principal officers, and of the staff gene-: rally at home and- abroad, entitle,, them to the best ’thanks of 1 the directors and proprietors; The annexed balance-sheet presents, a net amount of profit of £131,809 0s Id, out of which-the sum of £25,000 has been transferred to the reserve • funds, and the balance, viz., £106,800 os. ld.,iis available for division. ' Of this the dividend and bonus will absorb £IOO.OOO, leaving £6300 os. Id, to be carried forward. The dividend warrants will be transmitted by post on the 2lst instant, arid, the dividend and bonus will be payable in the colonies, at such time as the general manager shall fix after tho receipt of telegram. Tho directors have now to refer to the important measure;which; after much consideration, they have resolved upon and communicated by circular to the proprietors, viz., the issue of 10,000 new shares at a premium of’£33 per share. By this measure £250,000 will be added to the capital, which will bring the total paid up to £1,500,000, and the transfer of the premium to the reserve funds will increase,these funds to £780.000, thus permanently strengthening tho position of the bank and the security of .the proprietors. Since the capital was last added to, fourteen years ago, - the deposits and circulation have risen from £2.946,000 to £6,721,000. and the local bills and other advances from £4,067,000 to £7.708,000. regard to these facts, to the continued growth of colonial in lustries which- are ’constantly extending-into hew localities, and to the wide area over which the bank's operations are spread, the directors consider that‘the additions to capital and reserves now proposed are necessary for the present and prospective business of the bank, and they, therefore, .earnestly and confidently recommend the measure to the adoption of the proprietors. The following is a statement of liabilities and assets at the branches on. the 30th June, and at the London office on the 31st of December, 1877'

. Leaving a balance of ... . £4,307 12 7, Profits of the past half-year;, after making provision for all bad and doubtful debts, £180,222 11s.' ■ ' ‘ Less: Remuneration to , the local directors ■ ' J and salaries and allowances to the colonial staff, £36,016 7s. 7d.; general expenses In the colonies, inclnd- • ing rent, taxes, stationery. &c, t I £12,617 9s, lid..; remuneration to the board of directors, salaries of London oflice, staff, rent, taxes, . stationery, and . general expenses, £8282 19s. 3d.: income tax, £1273 Cs. 9d.—£58,790 3s. 6d 127.432 *J C,

The Chairman said: Gentlemen, I could have wished that on this, doubtless the most important - occasion in the history of the bank, the chair had been occupied by one of my more experienced colleagues. At the same time my task is lightened by the belief that the statement of accounts which wo are now able to submit must be as satisfactory to you as it is gratifying to ourselves. I am glad to have an opportunity of expressing my conviction that the operations of the bank combine in themselves all the elements that constitute success in business. They are safe, profitable, and they'are progressive. (Hear, hear.) As to their safety you must receive my assurance that the ; accounts of e'ery branch have been minutely examined by a committee of the board, and that as a result you may rely upon my statement that the most ample provision has been made for every bad and doubtful debt, from which, thanks to the prudent management of our affairs in the colonies, we continue to keep, lam glad to say, remarkably free. As to the profitable nature of our operations, you can best judge of that’from the circumstance that we are enabled to pay a dividend of 16 per cent., besides adding £25,000 to our reserve fund. As to the progressive nature of our business, I will trouble you with a few figures, which are, I think, as remarkable as they are satisfactory. I have gone through 'the last six half-years, and I find that the assets and liabilities of the bank were os follows:—On the 30th Juno, 187 5, they amounted to £6,985,203. On the 31st December in the same year they were £7,091,494. On the 30th of June, 1876. they had risen to £7,983,680, and on the 31st December of that year they had further risen to £8,343,083. On the 30th June last year they figured for £9,055,612/and from the stament of accounts submitted to you, which is made up to 31st December last year, and to the 30th June in the colonies, you will see that the amount had risen to £9,051,894; whilst if wc could submit to you a statement extending up to the present date, the total would be doubtless increased to over. £10,000,000. (Hear, hear.) Gentlemen, in the report which has just been read to you, we have unfortunately been obliged to revert again to the. partial continuance of the drought from which some portions of the colonies have suffered now for two seasons. But although we sympathise with the many individual cases of severe loss which have no doubt occurred, yet wo are aware that at no time has the pastoral interest generally been more sound than it is at present, nor has it ever been better prepared to meet such a calamity, preceded as it was by several exceptionally good years. (Hear, hear.) Further, we must recollect that whilst the paatoralintercst will at all times probably continue to be the most important one in Australia, yot other interests are now rapidly extending themselves. South Australia and New Zealand arc already large exporters of cereals, while New South Wales. Queensland, and '-Rumania, which last has hitherto appeared to be the most stagnant of the colonies, are steadily developing their vast mineral resources, and Queensland is successfully producing sugar and other tropical products. All this points to an increased demand for money, an Increased demand .for that capital which it is the business of an institution such as this to supply, 'and from which we may look for continued aud enhanced, profits so long as our'operations are conducted in’, the colonies with prudence and care. This me to remark that the paragraph in the report relating to tho services Of bur staff generally is no, more idle compliment, and I know it is as much appreciated'by the’gentlemen to whom it refers as I am sure it is well deserved (Cheers.) However Strict may'bo the regulations laid down by tho board as to tho conduct of our business, they would j really bo useless-.,were-they • not . ably seconded and efficiently carried out by the gentlemen at the head of our affairs,both in the colonies and at Horae.. I alhido particularly to Mr. McMullen, tho general manager, and Mr. Palmer, our chief officer in-New. Zealand, And; to our excellent manager in London, Mr. Mewlmrn. (Cheers.) With these few remarks,gentlemen, portant paragraph iri‘ the report, that which refers to the proposed increase of capital—a measure upon which tho directors have resolved, after the most mature consideration, as being one calculated in their opinion to'prorooto the best interests of tho proprietors; and it Is satisfactory to us to believe that,the shareholders generally apprpva of the course‘we propose to adopt, Judging from tho large number of proxies which have been forwarded to us In favor o£ It.. It, will probably, bo in the recollection of thd 'shareholders present' that In 1863, when ‘ our

capital was last increased, authority was given to tho then board to add £600,000 to the capital, which then stood at £1,000,000. But at that ti#e only £260,000 was issued, and when you consicler-The" few statistics ? with which I am about to trouble you. you will, I think, agree with me as to the,,wisdom of the course which the directors now propose to follow qf adding £250,000 to the capital, besides transferrings ft large amount to the reserve fund, which/-in an institution like ours, constitutes such an. Important of safety to the shareholders. ' Comparing 1803 \ with, 1870, the last year for which we have any statistics. I find that whereas in 1863 the total population, of thq. Australian colonies and New Zealand was under 1,200,000, it has now increased to 2,400,000. The imports stood, .in,..the, former, ( year...at..£34.ooo,ooo,. and. they have now risen to £45,000,000. The exports stood at £28,000,000, and they have now f risen tq- ! £43,000,000. (Hear, heari)-. d may hero point? remarkable change iri the relative position of tho two .pidndpal articles of r colonlal oxport-T-gold..and*wooL-In 1863 gold was exported to the value of £11,000,000. whilst in 1876 the amount had'sunk to £8.000.000. On the other hand* while .in 1863.. the .value of. the wool ■ i exported was £6,000,000, In 187flrifc was no loss than £19,000,000. ‘ (Ilear.i hear.) \WelI. gentlemen, continuing tho statistics. I find that in 1803 there were in'the colonies’ altogether 81.000,000 sheep, ! andi there are now 02,000,000. There .were then 4,000,000 of cattle; the nuraoer lilriow! "over 7,060,000. The total of the revenues of the several colonies !in 1863 ! was- . About f I :£/,600,000,1' litid ' * isl I mow £16,000,000. The total number of acres . under cultivation was then 2.ooo,oUo^And at ‘now amounts to 6,500,000. Finally.-the.debts of tho colonies amount to about. £60,000,000,-invested for the most part in reproductive works, 1 Including 3000 miles of railway, many of which-are paying raoro than the interest on the cost of .construction. r (Hear, hear.) Gentlemen, I think these statistics are more convincing than any arguments I could use as to the wisdom of the course which we recommend you to adopt. • But before sitting down Xwish to anticipate two or three objections which may he made to that proposal. I know it has been said that, admitting the truth of all such facta as I have been stating, we ought to have earlier foreseen the necessity for,’such'a’measure, ana to have given an earlier intimation of our intention to. recommend its adoption. Now, gentlemen, I: frankly admit that, while we have been;gratified to observe how out%.business has increased,.we did not anticipate that it would increase in such a rapid ratio as, it has lately been doing, and this has been occasioned. by the policy of the Government of New Soufh Wales, and also that of Queensland, in throwing open large areas of land for selection, I am glad,to say that we number amongst our constituents a body of gentlemen who are second to none in Australia for wealth and for position. When these i gentlemen come to us with a .desire to, con vert their, pastoral ‘tenancies into freeholds- they naturally look to-us to afford them a reasonable amount of < assistance, and if we are not prepared to render it they will take their business elsewhere, ft course which-we are not prepared to allow. Again, I know an 1 , apprehension -has been expressed that an' capital_ very often means a diminution in the dividend. Well, gentlemen, that has been the . case. I am. aware, in some instances in the City of London; but, if.jou consider the amount that we propose to raise, you will find that, in order to maintain al6 per cent, dividend, we have only to earn about 7 per cpnt. on the sum with which wo shall bo entrusted, and 7 per cent, is a very 1 moderate percentage to earn in'the colonies. Finally, I would remark that the last, and perhaps the moat important objection to qur scheme, is that which has been raised by a few shareholders, that wo ask you to give too high a premium. (Hear*, hear, and no, no.) To that objection I may reply that .amongst the largest ishareholders in-this institution are gentlemen sitting on this side of the table, and that It would have been most welcome to us fco;have proposed the issuing of newsharos at a lower premium, had we considered merely our own personal interests; hut in tho course which we have : adopted;we have looked solely to what we believe ' to be the fature interest of the bank. I have told you frankly that we want this money ; wo see our way profitably to employ it ; and after very full .consideration?we have unanimously come to the. conclusion to fix the price of issue at £SB, as being under all circumstances fair and reasonable ; arid I trust and' believe you.will accord to us your approval, of tho courso we have adopted. With these remarks, gentlemen, I beg to propose that tho report and statement of accounts be received and adopted. - . ui ; . n ■ ? Mr. William ;Botly, ! inj^seconding, tho morion', thought that the shareholders generally- would be extremely gratified with the report arid the progress which the bank had made. * At one' time he had thought that the premium asked on the new Issus; of was too high; but after hearing the remirks of the chairman 5 he was prepared'to entirely and thoroughly endorse, the- action: of tho board. The price of issue was such, to; his: mind, as would seep shares in-the hands-of investors, and not allow .the profit to go into the hands of jobbers arid dealers as was too oiten the case. : 5 1 • : Mr. Wilkinson gave only* a qualified support to the report and the increase jn, the,capital, as he feared that it would lead to a decrease in the ! futuro dividends. He also-objected to -such a large increase in the. reservo fund; because it was to his, mind undesirable to entrust any body of gentlemen with a large sum of money which was not supposed r to earn interest. He urged the board to reduce’ the ’premium upon the new shares to £3O per share. : . ■ ■ . ; Mr. Balfour hoped that the board would not take any lower premium for. the new shares, because, ho looked upon it as a proper security for existing sharep holders. [ After some further discussion of a conversational character, • . .. ■ . - . rMr. Campbell (a director) said that ho,must, sup-? port the adoption of the report, for the simple reason that the increase in the capital was foreshadowed by himself when'he addressed the shareholders from tho chair a-year ago. . He told them then of the enormous resources of the' Australian colonies. He told them that the exports were grdater than any comparative exports in the worldthey-consisted of natural ductlons, and were not affected by,any manufacturing interests, which, unfortunately, this country was subject'to: arid f therefore ; they would require^all their means to support their - business-' His friend Mr. Fanning, who tilled the chair last July, told thern they could not stand still; they must go on. or.they would become a second-rate’institution, whidi they were not disposed to do. Since then the colonies had increased in wealth’ and it had come to this, they must either increase their capital or reduce the best and soundest business in the Australian colonies. . i • | The Chairman said the measure had not been de-j cided upon-without the most-mature-consideration,-and the Board were therefore not prepared to make any reduction in the premium proposed. ’ It was the: full intention of-the directors to carry all the premiums ” received: to the reserve fund, and though, owing to the expansion of the bank’s business, branches were opened where and when necessary, there w»s no special intention of increasing the number consequent on the proposed enlargement of the bank’s capital. , The reoort and accounts were then adopted, and the dividend declared, • BY IELEGRAPH. ~ AUCKLAND SHARE MARKET. (FROM OUR OWN CORRESPONDENT.) AUCKLAND, Wednesday. Mr. A. Saunders reports;—Sales; Bank of New Zealand," £23 15a: National Bank, 73s Cd; South British, 78s; Loan and Mercantile, 60s ; -Alburnla, 555; Beach, 20s; Cure,Cs 3d. Buyers: ..Colonial Bank,: fOs; Kurunui, Bs. Sellers: Union Insurance, 15s Cd;. Bismarck, ‘Bs 6d. r : 1 ; !; ■''

£ s. d. Spirits .. 240 2 6 tfin'e ,, *■ IS 0 .2 Tobacco .. 22 15^0 Cigars.. .. 33 15 ’ 0 ... 51 13 Sugar.:. .. 50 17 8

£ s. 1. Ale, bottled. i 12 0 :0 Goods by wgt. 0 12 2n Ad valorem .. 43 7 1 'Total . ,£473 3 O’

Liabilities. £ s. d. Circulation 331,'316 5 0 Deposits ... .. ... •• Bills payable and other liabilities (in eluding reserves held against doubt 6,310.311 8 5 • fuldebts) . 1,123,466 13 5 Balance of undivided profits .. 106,800 0 1 Reserve fund as per contra , 250,000 0 200.000 0 0 Building and other reserve funds 0 Capital 0 £9,651,894 6 11 Assets. -. £ s. d. Specie on hand ' • 1,315,565 S 1 Bullion on hand and in transitu, .. > 74,491 10 9 Bank premises and property .. 187,993 14 8 Government securities 114,964 6 securities 7,703,879 0 3 Reserve fund, invested as per statemeat ■ i. 1 ■ .. -• 250,000 0 0 * : ’ ' £9,651,89-4 6 11 : STA.TE5IBNT OF PROFITS. ‘ i Balance of undivided profits at 30th. . £- :> s. d. . 104,367 12 7 Out of which a dividend and bonus I were declared of • - .. . 100,000 0 0

£131,800 0 1 Amount transferred to building and other reserve funds 25,000 0 0 Balance of undivided profits at this date ... ... Reseuvk Funds. £106,800 0 1 .Hew Zealand Imperial Four per Cent. Debentures 200.000 0 0 Colonial Six per Cent. Debentures .. 50,000 0 0 £250,000 0 0 Building and other reserve funds 200.000 0 0 Total reserve funds £450,000 0 0