BANK OF NEW ZEALAND.

New Zealand Times, Volume XXXIII, Issue 5337, 6 May 1878, Page 3

BANK OF NEW ZEALAND.

(From the'. New Zealand Herald , April 26.) 'Tho thirty-third half yearly meeting of the shareholders was held yesterday in the bank-ing-house, Queen-street, J, D. Campbell, Esq., Chairman of the Board of Directors, ingThe general manager,'Mr. D. L. Murdoch, read the minutes of the last half-yearly meeting, which were confirmed. ■ The general manager read the half-yearly report atid balance-sheet as follows : : \ Thirty-third Report of the Directors or the Brnk op New Zealand, to the HalfYEARLY GENERAL MEETING OF' THE PROPRIETORS, HELD AT THE BANKING-HOUSE, AUCKLAND, on Thursday, 25th April, 1878. ■ •The directors have much pleasure in again meeting shareholders with a favorable report, : which affords evidence of continued progress and success > The net profit at Slat March, after making ample appropriation for all bad or doubtful dependencies, , and for'reduction of bank premises and,furniture, amounts to ..£82;6C7:19 4 To which' has to be added— Balance of undivided profit at 30th September, 1877 ~ .. ~ .; .. £1,700 4 5

Making a total available for division of ; .. ' .. .. .. ' £84,858 3 9 The following appropriation of which is now recommended— To. payment; of dividend at the ; rate of 10 per cent per annum £36,250 0 0 To bonus of ss. per share, equal to : r per cent, per an- • • num .. .. £18,125 0 0 , ' ‘ To proposed increase to reserve fund .. • £25,000 0 0 ■ To balance carried. • . to profit and loss ' ■ new account .. £-1,983 3 9 - —: £81,358 3 9 : The dividend and bonus will be payable at the head' office. Auckland^on.Fr 1 day. tho 20th April, and at tho branches on receipt of advice. ■ Tor tho .Board of Directors, J. Logan Cakpbell, President. Aggregate Balance-sheet of the Bank of New Zealand at. 31st March, IS7B, including London Office at 31st January, 1878

• , i £325,000 0 0 , Audited. ■> •: f . B.' Tosk™ } Amlitors.

The Chairman, in moving the resolution for the adoption of the report/ ‘said- i'Gentlemen, —lt' has been" the' good' fortune' of' the, ooou-', pant of tins chair—l may almost say' from' the first meeting iof the bank—to have only congratulatory: remarks to make to shareholders, and the present occasion proves ho exception to the rule.- The report which has jiist been'read will, I am sure; commend itself to you as evidence of the bank’s continued' prosperity,'and,'favorable as that’report isj it, would have ibeen 1 materially better but, ! for special. causes; the principal one being the continued depression on the West Coast of the Middle Island, which has nntailed considerable, loss on the bank, but which, I am happy to assure you, : has Been amply provided for out of current profits. A'ease of default, has also contributed to, sw'oil losses, but this 'likewise, -has ■ been fully ■ provided for, and it is 1 »r. pleasure. ,to assure -shareholders that such cases in ’our "’e3iporien6e ■ ate ex-', trembly, rare—in fact; are so' exceptional as' to reflect the highest'credit on the character of the bank’s largo', staff. Another-’ heavy' 'charge upon profits has been the necessity of; extending, the % bank’s agencies in ; direc tions' which-do not become immediately romune-' rative. 1 I ifeel. assured,' however,' that shareholders will .heartily endorse' the action, of jtho board in this matter, the aim' of the directors being to make this institution the Bank;of New;Zealand-in reality as well 1 ns Jn name. No .opportunity, therefore, is lost , whieh, either from present appearances or future,: prospects, offers a fair chance of success to , extend‘ to''outlying districts the benefits of 'banking facilities.;:-Your directors' consider they,best conserve the:general-in-terests .of proprietors, by pursiiing this policy, thus enlisting the:sympathies of the 1 general public, even though at a sacrifice of immediate profits, which are not the solo aim of this institution, We are now represented at no less than 84'localities in Now Zealand alone, and shareholders who have had an opportunity of ■seeing the handmme structures erected at most of these places, will regard with satisfaction the. comparatively small' amount re-; presented ip the balance-sheet by landed property, bank ..promises, , and furniture —an amount which, does, not,more than, represent, the real value of promises at head offices and two or three of the principal branches ; the cost of tho whole of the remainder having been defrayed out of profits. ’ ‘Shareholders, I am confident, will ..confirm” the action -, of, the board in recommending a further addition of £25,000 to . the reserve fund,, which, with such addition, will stand at, the gratifying sum of £325,000. Nothing can, more conduce to increase public confidence in the i AO .-5. lU Ji.’.A

institution than the continued evidence.,, of the shareholders’ desire to ; strengthen their reserve rather than i-:crease their dividend ; and when \yo consider Uuit we ha c made a return of 15 per cent, for the past eleven years, with two exceptions, when a reduction of per cent, was made, that your reservo fund has within that period grown from £150,000 to its present amount, there cannot he other than a feeling of satisfaction at the policy pursued by the board. The figures in the balance-sheet will commend themselves to shareholders as evidence of a progressive business. Their magnitude, and the consequent heavy reponsibility aevolvino* on your board, have a not unimportant bearing on a question which will come before you at a special general meeting, to be held immediately after this one closes. There has been an increase of circulation, deposits, and other liabilities, of about £730,000, while advances under all heads show an increase of about £300,000, other balances remaining much in the same position as in last statement. 'Allow me to irivite your attention to a very noticeable feature in the records of banking in the adjoining colonies, which has a reflex influence on the business of the banks in_ Ivew Zealand. ' The sworn averages of the banlcs show, that during the .past year, in Victoria alone, there lias beeii , the vast expansion of . three and a half millions in advances, against an increase in deposits of little over one and a. half millions, and there is no compensating feature in the published averages of other colonies, in nearly' all of which ■ a considerable proportion of , each hank’s. capital appears to he employed. The effect is seen in this colony, in the extreme rates, : offered for deposits, a policy, which though, necessary to'’adjust the capital accounts of foreign banks, is ’certainly ‘ not calculated to promote the interests,of New Zealand, and the consequence, of .which must; inevitably ’be a . growing scarcity of money, and dearer rates for it. . So far as prudence will allow, we protect our own deposits ; but with auqll a pressure in the foreign hanks, no. effort : of ours can present, a large amount of- the otherwise available capital of this colony finding its way to adjust balances in the neighborin" colonies. It may be within ; the 'recollection of shareholders that, at the general meeting held on the 28 th April, 1865, it-was in contemplation to initiate within the bank a guarantee and provident fund for the officers of the establishment, and to which the directors recommended the bank should contribute.! In consequence of the attention of the board having - shortly afterwards been called .to the apparently superior advantages, of the. Colonial and Foreign Banks’ Guarantee; Fund, in London, it was decided to support it in preference to the intended fund within the hank, a decision which has long been regretted. Experience has .proved, that, if tho original intention of the hoard had been carried out, the , fund would now have amounted to such a sum that would not only have • given ample security ■to the bank, but would have afforded a certain prospect, of; reasonable provision for officers, who, from old age or ill-health, are obliged to retire from’ the service. Tho directors now, propose to revive the idea of the guarantee ,and' provident fund, but as the great majority of the .staff are already guaranteed in the London’ fund alluded to, and are not liable to ho called upon for further ; contribution (unless ; under circumstances not likely ’to arise), they cannot .with any fairness be ’ now asked to contribute to ‘ more than the provident branch of the proposed fund. / To. enable, the intended fund to start with a fair prospect of success, a liberal contribution'' will have to be made by the bank. The subject has been forced on. the consideration of the board by the necessity for already making some provision for officers retiring. from the service under circumstances which demand recognition, and as the necessity for. such a provision will' bo a growing one as the age of the bank increases, the expediency of providing a fund from which such claims oau be met, appears not' only reasonable, but almost compulsory. Details have not yet been sufficiently worked out to justify the hoard in saying what! contributions will be made to the fund, bvit it has been thought proper to invite the opinion of shareholders, in case it should not be in accord with that of the Board. It is intended that henceforth all officers joining the service will be. guaranteed within the bank on terms somewhat similar to those of the Colonial and Foreign Banks’ Guarantee .Fund. , From past experience it may be reasonably hoped that a fund will soon be accumulated, which will afford ample security, and as the success of the provident fund, will in a great measure depend on, the ahsehcb of claims on the guarantee . fund, the. staff will have, a personal, interest, in noticing tho aots 'ahd habits of fellow-officers; and . will . feel that any irregularity, rema’uing uncorcorected may .entail future personal loss. In conclusion I have : pleasure in recording the continued rapid growth of the colony in population, wealth, agricultural and pastoral pros-, perity, a growth which gives confident hope that as in the.past.our business in the future 'will prove progressive and remunerative. No better proof of the developing power.of our railway system can be adduced than the rapid increase in 1 the price of; freehold lands, and ho--better proof of ' the prosperous, circumstances and improving position of our iPopulation, than its ability'to acquire ; freehold homesteads. Amidst a prosperous community banking must prosper, and your directors claim to , have carried; out the policy of encouraging all to look for legitimate accommodation according to .their means—a policy justified by results, and warranting that continuance of support from the public which has always been so liberally extended to the Bank of New Zealand.- (With these.remarks I beg to move. - the adoption of the report and balancesheet. ~'(,',

Mr. Firth/ in rising to’ second tiro adoption of the report, said; I shall have yery.little to say in'seconding this resolution, inasmuch as the figures laid before you Show with great clear-' ness the position of : the bank,'the extent of, its operations, / and their result : with regard 1 to profit. This is done, in my judgment, ap clearly aa it can be done. The remarks of tiro president have'also elucidated the operation;; of-the bank/leaving very little ‘to 'be said-in addition. h There are, however, one or two points which, with your permission, I should like to' notice. 1 Among the remarks made by the I president was one to the 1 effect that in the neighboring colonies there is a difference of some two millions as betwixt the deposits|'re- • ceived by the Victorian banks and the advances made by them. This extraordinary discrepancy is likely to have a ‘ mote 1 or less’adverse influence on banking operations in. this country. • It may have'arisen, I think, frotn 1 the circutnstances of 1 the colony of Victoria and the adjacent colonies having suffered much during the last two years from unexampledclrought 1 ; j this fact ' entailing great losses on the, . con-, ; stitueheies „ of -all ..banks ; requiring great. Support from .these Institutions, to ■ be., given, to their constituents.' Every one present will, •be aware that this colony has not been exposed to any such severe periods of drought, as the .neighboring. colonies have suffered ; from' ■ .time to time. With tire, genial climate ■and fertile soil of this colony, we may expect affair share of .prosperity in the future to 1 an institution like this, whose fortunes are. bound up with the interests of the country, ■ There is another matter in'connection with the agricultural operations of. this country, which has been already referred to by the chairman.. It is a matter of ! great Importance,• . indeed/when-we atd confeidering the future ..of institutions ' of : ■ this l ’ description. 1 -' ‘ This . is, that owing to > advantages of climate •and other favorable circumstances, it, .has.been found possible ll to ’ aid”in 1 giving : to the land a perennial l fertility, inasmuch 1 ! as, • :by : rotation’ of f crops, it' has been 1 ffouild, posisible to preserve -the growing powers of , the -soil from season to season; ' In the. neighbor- ’ ihg colonies 1 this has - not been 1 found possible,-! the - greatest 1 difficulty , being found; in' ■ those ’countries to raise- root crops and artificial grasses. 1 'To take South Australia for ■ which is , shut .out ffrom growing’other crops than wheat 1 ; : tho : effect. of - this ■■ means that 1 it has to’ export .one .of the main■ elements of’ its .futureprosperity, having little else’ to put .in its place, sending; away ffrom time to timo a .most important element ! of its wealth in the shupo of cargoes of wheat/‘which- are not .replaced; by l any other produce, in 1 consequence' of 1 the soil being unreplehished, Ws need not, when wo 1 .regard . these oiroumstaUoos,' be surprised to find that, while l this year’s yield has been on the whole equal to the average .-in'some other colonies—7f‘ bushels to the acre .—ln this colony, taking tho‘ statistics 1 for Canterbury alone, ■ based upon 1 the 1 returns alteadylmade, the yield has been at the rate of I 23 bushels to the aero. In this province ~ I have not seen any returns, but my experience enables fine to arrive at a closely approximate estimate—the "average yield has beta 32 bushels.i. iThis 1 is : a result due to i the advantages I have spoken of, the /.genial i llclimate 1 -! and = the ■ fertile soil with which we arelhero blessed. I look forward, therefore, to the future'prosperity of this institution, based, as it is on such a solid ’ foundation as that indicated by the patnralad'ywntages'thb '’country possesses. Having just;

.returned, from a visit .to the Southern portions of this .colony, l am well pleased to he enabled to state that I beheld there the elements of the; highest prosperity; end wealth. I can confirm the remarks made by the president with regard to the buildings of this bank, having had an opportunity of inspecting a great many of them. I must say the selection of the sites reflectsthe greatest credit upon tlie early friends of this bank, inasmuch as they are placed in the very centres of business of the towns where they are erected. They present all the appearance of substantial and commodious structures, and would not disgrace any banking corporation. I havo no doubt they are worth more than the amount set down against them. I have great pleasure in seconding the resolution that the report and balance-sheet be adopted. I have no doubt that by means of the careful and wise management which has hitherto done so much for the institution, we may expect still greater profit to the shareholders, and not only to them but to the country at large-—upon the advancement of which, as a basis, the operations of the bank will have to depend. The resolution for'the adaption of the report was put and carried unanimously. AUDITORS. ■ ,

On-the motion of "the Chairman, seconded by Mr. A. K. Taylou, Messrs. G. P. X’lerce and B. Tonks were elected auditors, in the room of Messrs. -James Watt, resigned, and J. O. Stone, absent from the province. ■ 1 Mr. P. Dignan moved a vote of thanks to the directors and officers of the bank; Mr. James Hobertson seconded the motion, which was put and carried unanimously. ■ ■ The Chairman returned thanks on his own behalf.

' Mr. Murdoch, in returning thanks for the officers, said : It affords mo great pleasure, on behalf of the staff, to return our thanks for your vote. I cannot, on behalf of the staff, promise more in the future than we have done in the past, because I should be sorry to think that among our numerous staff there is one offioerHvhose heart is not in his work. But, encouraged- by this renewed expression of your confidence in us, I may safely promise that our combined ; efforts will be used to- make the future success of. the institution as oouspiouous as it has been,,in, the past. ■ Nothing can more conduce to this than your, continued expression of confidence in, the staff, and the unvarying kindness with which \v;e have, been treated by your directors. I have much pleasure in again thanking you for your vote. - ■ '

; SPECIAL MEETHSG. The meeting was made special for the purpose of confirming the resolution proposed at : the last halt-yearly general meeting, to the effect, •“ That in clause 50 of the Articles of the Deed of Settlement, in lieu of the words ‘ One thousand,’ the words 1 Two thousand five : hundred ’ : be inserted.”, ■' The Chairman explained that it was necessary that one-third of the capital of the bank should ha represented in person, or by proxy, and Messrs. Hill and Tonks were appointed scrutineers, to ascertain whether the meeting was properly constituted. The scrutiny hav-ing-been declared, in effect that there were .29,500 shares represented' at the meeting, the chairman declared the meeting legally constituted for the performance of the . special business, and moved the resolution. Mr.-Tones, in seconding the motion,’said he had, since making the proposition, spoken to several of the sharehelders on the subject, and they agreed with him that j it was high time what he suggested should be done. It was to the interest of the bahic that the shareholders should do full justice to their directors. He had great pleasure in seconding the resolution. The motion was put and carried unanimously. . , / ; ■ This concluded the business of the special meeting. 1 , ’

Dr, ... ■ £ R. d. Bank stock 725,000 6 0 Reserve fund 300,000 0 0 Notes in circulation .. .. 502,557. 0 0 Bills payable in circulation .. .. 2,133,674 5 6 Deposits and other liabilities.. 6,800,070 4 O' Balance of profit and loss at September30, 1877 ..- ". .. .. 1.790 4 5 •Net profit for half-year ... .. 82.567 19 4 £10,650,050 13 11 Cr. £ s. d. .Coin and cask balances .. 972,831 6 0 Bullion on hand and in transitu 452,880 11 0 Government securities..' .. .. 770,000 0 0 Bills receivable/and-securities in' , London . .- .. .. ; 2.073,104 14 10 Landed property., bank premises. - furniture, &c. . .. ... - .. 124,311 154 Bills discounted, and other debts duo to the bank 0,157,528 6 0 ’ ‘ ’ £10,550,050.13 11 ' PROFIT AMD LOSS ACCOUNT. , Dr. ■ £ s. a. 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 reserve fund 25.000 0 0 To balance carried to profit and loss, “ new account'.’ : - .. ' .. • .. 4,983 3 : 9 ’ £84,358 3 0 : . Cr. ■ - £ ' fl. (1. By,balance of profit and loss at 81st March, 1878 82.567 19 .4 By balance from last half-year . ... 1,790 ...i 5 i £84,358 3 0 i ' RESERVE , i Dr. . ' a. To balance .. ‘ - . 325,000. 0 0 £325,000 0 0 . '.Cr..' . d. By balance from last statement • . * 800,000 0 , 0 By proposed : • ’•25,000 0 0