BANK OF NEW ZEALAND.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9475, 18 June 1909, Page 5

BANK OF NEW ZEALAND.

THE CHAIRMAN’S ADDRESS. Press Association. Wellington, Jane 18. At the annual meeting of the Bank of New Zealand to-day the Chairman (Mr Beauchamp) moved the adoption of the report and balancesheet , He said that the question of increasing the Bank’s capital had been engaging the attention of the Board, but so far no definite [scheme had been formulated. He the figures already published and gave a statement of the position of the Assets Realisation Board. This showed that the balance owing by purchasers was £836,981. During the year'll unrealised assets had been reduced from £93,195 to £66,778, and sinoq March 31st further sales had been effected amounting to £10,467. The Chairman considered the decrease highly satisfactory. THE STATE OF TRADiji, Dealing .with the state of trade generally he said that it was most disconcerting to have to admit that a sudden drop in the value of a primary product for one season |only should cause such financial ..disturbance £S they had 4 lately experienced. The inordinate prices given for land were another cause of the depression. Cheap land was more necessary than cheap money. Had land values been maintained at a normal ;and reasonable level |they would not now be troubled with monetary tightness or distress arising from unemployment. Land should be bought and sold on the basis of its productive value in normal times. Industry in the North Island would be greatly stimulated by the settlement of Native lands. He did not anticipate the present depression would be so acute or lengthy as previous ones. The financial stringency was not so pronounced at the present moment. The world’s trade for the past year had been factory, which was due to lower prices and the shrinkage in consumption. Exports from the Dominion showed a decrease of millions. The wool market showed an improvement and the outlook was. exceptionally good. Exports of butter and cheese showed an increase during the past season, but he anticipated a serious drop In the value of dairying land due to the excessive prices given and to competition of other countries. The state of the frozen meat trade was most discouraging. Industrial depression in Britain was partly responsible for the shrinkage ingvalues. The Argentine was becoming a strong competitor. Special efforts should be made to induce foreign Governments to relax” the conditions preventing New Zealand finding fresh markets for frozen meat. Hemp and kauri gum showed no improvement in prices, but the wheat market was hopeful. New Zealand had a surplus of two million bushels, and with London quotations at 48s and 44s per quarter, wheat growers in the Dominion should make money, hut the new crops in America and Britain would cause a readjustment of values. Therefore it was not advisable that growers should gamble on market prospects. Mr Martin Kennedy seconded the motion. He said the result of the year’s operations as disclosed by the balance-sheet would be accepted as highly satisfactory. Referring to the bonus, he said it was less than, many proprietors had been expecting, especially those who suffered heavily in the Bank’s failure, but ho asked them to look to the acts of the directorate rather than to the amount of the bonus. It was an indication .that as soon as circumstances admit t> e 2% P er cent bonus would be increased to 5 per cent, in future years. He did not favour any proposal to increase the capital, especially as they were

building up a reserve so rapidly. The necessity for additional capital was not likely to arise before 1914 when ‘the guaranteed million falls due. To issue new shares legislation would te required, and one could never be sure what would happen to a Bill in the House of Parliament. | Mr John Mills, Port Chalmers, expressed a hope that 5 per cent, bonus would be paid next year. Replying, Mr Beauchamp said that the Board were actuated by the desire to place the affairs of the Bank' on a sound foundation. He did not wish it to be taken that the bonus of 2% per cent, this year was to be taken as an indication that there would be another 3% per cent, on top of that next jear. Before increased capital would be asked for an assurance would be sought from the Premier that the Bill would not be subjected to alteration. It would be “ the Bill, the whole Bill, and nothing but the Bill.” Owing to the cautions policy the Bank was pursuing shareholders must not be disappointed next year if such good results were not shown as was the case in the two last years. The meeting closed with votes of thanks to the directors and staff.