BANK OF NEW ZEALAND.

South Canterbury Times, Volume XV, Issue 2063, 3 November 1879, Page 2

BANK OF NEW ZEALAND.

(“ New Zealand Herald,” October 24 ) The half-yearly general meetirg of share ho’ders vvas held yesterday, John Logan Campbell, Esq., Chairman of the Board of Directors, presiding. There was a large attendance of shareholders.

The General Manager read the advertisement announcing the meeting, also the half-yearly report as follows t Thirty-sixth Report of the Direcmrs of the Bank of New Zealand, to the half- • early general meeting of the proprietors held tit the Banking house Aneklaud, on Thursday, 23rd October, 1879. Directors beg to submit the result of the past half-year’s operations, which will, no doubt, be considered satisfactory. £ s- d.

The net profit at 30th September, after rank ing ample appropria' tion lor dependencies considered bad or doubtful, and the usual reductions in Bank premises and furniture accounts amounts t 0... 69,038 14 9 To which has to be added— Premium on 25,521 New Shares takeu up, part of 27,500 issued under authority of the Halfyearly Meeting of the Proprietors, held on 29th October, 1878 ... 180,613 15 0 B dance from half-year ended 31st March 1879 9,753 11 8 Making a total available for division of .£259,406 I 5 Which it is now recommended be appropda.ed as follows : To payment of dividend at the rate of 10 per cent per annum ...49,010 1() 0 To bonus of 5 s per Share, tq ml to 5 s pe r cent per annum ...251,50 5 0 To proposed add iti on io reserve fond... 180,000 0 0 To tmlliuice carried to profit aud loss new account... 5,890 6 5 The dividend and"bonus will be payable at Head Office, Auckland, ou Friday, the 24th October, aud Branches ou receipt of advice. For the Board of Directors, J. Logan Campbell, President. Aggregate Balance shei-t of the Sank of N'-w Zeal ami at the 30th '-eptembsr, 1879, including Loudon Office at 3lst July, 1879 ; LIABILITIES, Jlr. £ 8. d. Capital, £1,000.900 ; less £l9 79J—par value of 1,979 iNew Shares of £lO io re,

( Bknj. Tonks. j Joskph L. Wxl;on. The Chairman in moving the adoption of the report and balance-sheet, said: —G-entlemen, —ln rising to move the adoption of the report and balancesheet which have just been been read, the usual pleasant duty is assigned to me of congratulating shareholders on the success with which the Bank’s business has been conducted during the last half year, and the balance-sheet affords the best evidence of the maintainauce of the Bank’s position. When I last had the pleasure of addressing you from this chair I took occasion to recount certain adverse influences which then existed, and which for the time being had unfavorably effected colonial interests. But we had not then fully realised the effect of the disasters of the previous period, nor did we then anticipate such an unfortunate result iu the agricultural operations of this colony, nor such a long continuance of low prices for wool and cereals which have since prevailed. The diminished spending power of the people, the contraction of Government works expenditure, the necossit3 r to provide large remittances to England for public and private liabilities of the Colony, have all had a tendency to increase the pressure on our monetary institutions. But the absence of any heavy failures sufficiently proves the readiness with which these institutions responded to the demands made upon them, and is the best proof of the general soundness of the commerce of the country. As a consequence of tho lavish orders which a previous season of unexampled prosperity had induced importers to send to England, and the diminished consumption from the causes to which I have alluded, stocks have in many cases accumu lated to an inconvenient extent ; but the corrective measures which have now long been in operation are already producing an appreciable effect, and wo may confidently look at an early date to have this temporary difficulty fully remedied. The past season has been one of unusual severity to agriculturists, who iu many cases were overburdened by speculative purchases of land; and this, iu conjunction with the bad harvest and low prices, has caused not a few failures among this class of the community. But though numerous, they have not involved any serious amount, and with the improved prospects for this season —iu tho exceptionally promising condition of the growing crops, and the enhanced price of wheat —it may be reasonably expected that much of last season’s loss to our farming population will this year be recouped. As affecting this institution, although we have as usual been exposed to exaggerated reports of heavy losses, I am happy in being able to assure you that these have not exceeded the average, and ample provision has been made for them. When I last addressed } t ou I reported the result of the issue of the new shares, which had been only partially completed. The Anal result, as noted iu the balance sheet, is that of the 2r,»00 shares offered to the shareholders wo are left with only 19/9, which have not yet been offered for sale, but which the directors will (alee a favorable opportunity to realise. Erom the public prints shareholders will have boon made aware that we have given notice of our desire at the end of six months from tho Ist instant, to terminate the existing agreement as to the Government account, tho terms of which have proved of a disadvantageous character. Beyond a mere acknowledgment of our 'notice, no indication Ims yet been given of the intentions of the Government, which is sufficiently accounted for in tho present political complications. whidi

practically have brought public business tostand. While prepared for a severance of the connection which, on the whole, has existed so satisfactorily during eighteen years, we have intimated that we are willing to negotiate for a continuance of the account, if terms can be ; - satisfactorily arranged. The directors have given much consideration to this subject, and in the course they have adopted, are assured they best conserve the interest of shareholders* Referring now to the figures in the report and balance-sheet, shareholders will, I am sure, be pleased to find that, notwithstanding the largely increased amount of capital on which dividend has to be ' paid, the profits of the last year admit of the usual dividend and bonus, and we are able to carry forward to the next , half-year the sum of £5890 6s sd, after crediting reserve account with £IBO,OC J —the premium on the issue of the new shares, as far as these have been floated. , The anticipation of a reduction in divi- ! dend has had a depressing influence -! on the prices of shares, but the Directors are glad to assure shareholders that although the net profit shows a diminution on the previous half-year, owing to the increased provision which the present condition of the colony makes it expedient to put aside for possible losses, the usual dividend and bonus is confidently expected to be maintained. The untoward state of the .colony during the past six months, and the fact that during that, portion of the year business is always less active than during the wool and grain season, will sufficiently account for the diminution which appears in some of the items in in the balance-sheet. There has been a reduction in the note issue of about £60,000, and of over £BOO,OOO in bills payable in circulation, which, although resulting in lessened profit, may be ac cepted as the best evidence of the measures adopted by importers to reduce their too heavy stocks. There has been a reduction in current accounts of a little over a million, which is largely to flue- • tuations in Government balances, the remainder being the natural outcome of the general depression caused by bad harvests, low prices, and reclamations on consignments of wool and grain. The conditions of the Home market having been favorable to the . .realisation of securities, advantage was taken of the opportunity to realise the bulk of the Government bonds held by us at last balancing period, and proceeds have been temporarily utilised in strehghtening our coin andcashbalances of banker’s pending a favorable opportunity for re-in-vestment. Our colony at date of balance amounted to about £900,000, and at the Bank of England £1,100,000. Our lessened liability in London, accounts for the diminished amount of bills receivable and securities held there.

The contraction of our advances, it •will he seen, approaches the decrease in our current accounts to "which X have already referred, and is in a great measure the effect of largely-diminished purchase of hills in London drawn on the colonies another of of the wholesome and timely’ check given to a previously too-extended importation. Shareholders will have reason to he gratified at the large addition proposed to he made to our re- , serve fund, which will now stand at' £555,000, and to which it will he the policy of the Board to continue to make such additions from time to time as our profits may warrant. Every addition to this fund not on only increases the the intrinsic value of your shares, hut increases the dividend-earning power of the Bank. We have been asked from time to time whether there is any Special investment of this fund* I need hardly tell you that there is no uniformity in the practice of Banks on the subject, hut the majority follow the couse we have adopted of making no special investment of the ic sor v o fund. Practically, although it swells the general dividend-earning power of the Bank, we usually hold Government securities to a larger amount than the reserve fund, and though at present this is not the case, the deficiency is more than represented hy the largely increased amountlof cash and coin atbankers I assume that the real purport of the question is, does the Bank hold such reserves, or immediately convertible securities, as afford resonahlc protection in all contingencies ? and I think no one will doubt this if the balancesheet put before you to-day is examined and understood. Another question has been asked —Does the Bank hold any shares in any unlimited company? due answer is simply that it most certainly does not. It has also been asked if it is intended to register under the Bank Act which is now being considered m England, but as our liability is already limited under an Act of incorporation, and we have no intimation as yet of the provisions of the proposed Bill, no consideration has been given to the subject.

It remains for me now only to close these remarks, and I may he permitted, in retiring in ordinary rotation as one ot your directors, and consequently vacating the President’s chair, to embrace the present opportunity to express the conyiction I entertain, that the severe check which the colony has sustained during the past year will be attended with the most beneficial results to the community generally, as tending to lessen the over speculative spirit which previously existed, and to lead all engaged in business to confine their operations within more legitimate limits, We have in the colony of New Zealand every element which loads to and secures prospenty. Climate alone would ensure its future greatness, for we know by statistical proof that no country in the world has greater agricultural and pastoral capabilities. And it is the colony upon which both the capitalist and the laborer in the Mother Country now look with longing eyes as the refuge where to find a new field of enterprise, and create a new home. With the progress of the colony, which nothing, I feel assured, can retard, will also progress this mstitution, and should you at a future time again do me the honor ot electing me to a seat at your Board, I have no misgivings hut I shall then find the Bank still maintaining, under my successor, the position of precedence which,, i am prpud to wj, it W witch rt devolved

upon mo to occupy this chair, and which it still holds on my retiring from it. I now beg to move —“The adoption of the report and balance sheet.” Mr J. C. Eirth, in seconding the motion, said : There is the less reason for my offering to the shareholders any lengthened observations, as the very full address of the President will have already made you acquainted _ with a erreat many of the conditions which have affected this institution during the past six months. I can only confirm generally the statement he has made as to the prospects of the colony. From every quarter we receive information that owing to the most genial season through which we are now passing, the crops all over the colony never looked bet ter and never gave greater promise of a most abundant harvest. In regard to the clip of wool, there is every promise of a greater yield than for years past, and it is the general opinion _ of. those most capable of giving an opinion that the prospects of the colony, from an agricultural and pastoral point of view, were never better. "We have all been anticipating for some considerable period a revival of trade notwithstanding the low prices that have prevailed in respect to the production of colonial wool. There is little doubt, so far as wool is concerned, a revival of trade might have been expected to take place in the old country had it not been for the unusually bad harvests that have afflicted England But the cycle of bad harvests may be expected to have approached termination. TVb may, I think, look forward looking to the history of the past, for a revival of trade at no distant date. At any rate, there is likely to accrue to the colony an advantage arising from the recent depression through which England has passed and is still passing, which which will be found in emigration from the Mother County to this and other colonics, an emigration which is likely to embrace an extremely valuable sort of colonists. I refer to English farmers ‘ and their laborers. I may state that there is now on its way a deputation from Linconshire farmers —the deputation representing, perhaps, some 400 or 500 farmers and their families —who are sent out to this colony to inspect its capabilities and to report thereon with as little delay as possible. Should the report of the deputation bo favorable — as there is little doubt that it will be—it is probable that a large number of farmers from what may bo called the “ garden of England ” will soon arrive in the colony. All these immigrants to this country having money in their pockets, and skill and knowledge to employ their capital to the greatest advantage to thcmselcs and the whole community, and will be so valuable an accession to our population that it is not necessary for me to say more on the subject. Another advantage which the colony Avill obtain, as it appears to me, from the recent temporary depression, will be the information that will suggest greater economy and greater caution on all sides, as compared with the periods of good times and good trade, in con- * ducting alike the individual and general affairs of the colony. I cannot but think that these turn elements—better information and the practice of economy —will be attended with the happiest results in the future when the good times return. Ihave to congratulate you upon thc|jiavorab 1 c report that has been laid before you, considering the extreme difficulties connected with banking business during the last half year. I hope that we arc on the eve of better' times, and that this Bank will continue to occupy the high position that it has hitherto held. (Hear, hear.)

The General Manager explained that the audit was signed by Mr J. L. Wilson, in consequeece ol the rathci sudden severe illness of Mr Samuel Browning. There was no possibility of obtaining the services of Mr Samuel Browning within the time necessary to have the audit ready for the half-yearly meeting, hence Mr J. L. Wilson was selected, and every shareholder would acknowledge that that gentlemen was thoroughly competent to discharge the duty. (Hear, hear.) The motion for the adoption of the report and balance-sheet was put from the chair and carried v ianimously. Mr Howard—l have great pleasure in moving a vote of thanks to the directors and ollicers of the Bank. The report which I hold in my hand, and which has been so clearly introduced by the chairman, is not one of mere chance. Ho better evidence could bo found of ability and sound judgment aiding the affairs of the institution. When one looks at the multitude of ft cures submitted in the balanced statement, representing on both sides of the accounts over £I(XOCJ,C JO and when we further consider that we have been only

eighteen years in existence, I venture to say that no such progress and success are to he found in any other British colony. Bearing in mind the trying and anxious times through which the Bank has been safely steered—each half-year appearing it to raise it to a prouder position than the previous one I am sure there is not one in this influential assembly of shareholders who will not heartily agree to tills vote of thanks to the_ directors and officers for their efforts to .promote the interest of the institution, and especially to the general manager, Mr Murdoch, for his able and careful management of its affairs. We arc uoav reaping the benefits of the ability, judgment, and prudence which have steered ns through a period ot general commercial disastei. X hai o the greatest pleasure in moving this vote of thanks to the directors _ and officers, to which they are justly entitled. (Hear, hear,) ]VIr J. Batgcr seconded the motion, which was carried unanimously. The Chairman returned thanks on behalf of the Board of X)ircctoi s. The General Manager returned thanks for himself and the staff of the JBank. He said the renewal of the confidence ' of the shareholders would be an ; additional incentive to increased efforts to promote the interests of the Bank. 1 The scroll minutes were read. f This concluded the business.

serve 980,210 0 0 Deserve Fuad ... 375,000 0 0 Notes in circulation Bills payable in cr'rculu 465.165 0 0 (ion .. Deposits and other Uabr 1,486,557 0 5 i i ties Balance of profit ami 6,658,287 13 8 loss 259 406 1 5 £10,224,625 15 6 ASSETS. C t. Coin and cash balances £ 8. d. at. b inkers Bullion iu hand and in 2,054,648 19 4 214,075 10 6 Government lecmities Bills tec -ivable, and se* 200,000 0 0 curiiies in London 884,729 6 11 Bill; discounted, and other debts due to the Bank Landed property, Bank 6,084,624 15 6 mises 186,547 3 3 £10,224,625 15 6 PROFIT AND LOSS ACCOUNT Dr. To dividend on 98,021 shires, of £10 each, at the rote of 10 per cent. £ S. d. per annum To bonus at rate of 5s per share, tqoal to 5 49,010 10 0 per cent per annum ... To proposed increase to reserve fund To balance carried to pr fit aud loss new 24,505 5 0 180,000 0 0 account 5 890 6 5 £259.406 I 5 Dr By b dance from half* year ended 3Dt March £ s. d. 1879 By premium on 25,521 new shares taken up part of 27,500 issued under authority of the half yearly general meetmg of the p-o’ prietors, held on the 9,753 11 8 29th October, 1878 ... By net profit for half year ended 30th Sept. 180,613 15 0 1879 ... . ... 69,038 14 9 £259,406 1 6 EESvIWB FUND, Dr. £ s. d. To ha'auce 655,000 0 0 £555 000 0 0 Or. By balance from half year ended 31st March £ s. d. 1879 375,000 0 0 By proposed increase 180,000 0 0 — Audited. £555,000 0 0