BANL OF NEW ZEALAND.

Rangitikei Advocate and Manawatu Argus, Volume XXII, Issue 9020, 6 December 1907, Page 2

BANL OF NEW ZEALAND.

Per Press Association. Wellington, December <>. At tlio half-yearly mooting of tlio Bank of New Zealand the chairman referred to tlio recent fa-11 m wool, hemp, mntton, tallow, and pelts, hut said lie did not. consider that the values obtaining loft much cause for complaint. The fall was probably in sympathy with tlio disturbed state of 11 10 money market, and- rates would improve with it. Adverting to the financial crisis, he predicted" that if the 7 per cent Bank of England rate was maintained Jot long money' must harden in New Zealand also. The crisis in America was attributed to New York bankers trading on a narrow margin of gold, and the encouragement of vast credit. Ho issued a note of warning in connection with the system in" New Zealand of several large trading concerns competing for deposits and allowing interest on current bank balances. Ho .had recently examined the published balance-sheets of seven companies and found their indebtedness in tins respect was £5:33,51f.. If by Statute banks are compelled to keep securities to the value of (Is Sd in the £ on thenliabilities payable on demand,_ it was oulv right that similar obligations should bo cast on these companies. It was gratifying to say that the business and of _ the hank, so far, wore well maintained and the prospects were encouraging. Mr Martin Kennedy who had just returned from Home had made himself thoroughly' acquainted with their business in Loudon and they would be pleased to hear that they had passed practially _ unscathed through the recent trying _ times. During the year the realisations of properties taken over from the Assets Board were effected to the extent of £;;33,(;4(i and the total loft now stood at £385,505. The Board proposed to pay an interim dividend of 5 per cent on both classes of shares. Mr Martin Kennedy’ being unopposed, was declared re-olccted to the Board.

Mr Martin Kennedy quoted particulars of the capital and reserves of other hanking institutions doing business in the colony, with a v.ow to showing that if £130,000 was added to the reserve the time had arrived for an increase of the dividend. In reply to this the chairman of directors quoted the paid-up capital reserves of other banking -institutions as a set off to Mr Kennedy’s view. He declared that it was inadvisable to attempt to increase the dividend until such time as the reserves of the Bank of New Zealand fairly approached those of other institutions wirh whieh it competed. Mr Kennedy said that while the reserves of other institutions exceeded those of the Bank of New Zealand it had to be remembered that their business consisted of operations which wore largely extended throughout Australia,_ where there was always a possibility of big losses through drought. It was iu Australia that the Bank of Now Zealand had lost largely iu the past, and while it, still carried oh business there it now dealt, iu a gilt-edged class of business. Tlio meeting passed a vote of thanks to the staff.