BANK OE NEW ZEALAND.

Southland Times, Issue 1058, 18 November 1868, Page 2

BANK OE NEW ZEALAND.

The fourteenth half-yearly general meeting of this corporation was held on 29th Oct., at the banking-house, Queen-street, Auckland. Thomas Russell, Esq., President of the Board of Director!) in the chair. . Mr Murdoch (Inspector) read from the ' New Zealand Herald ' the advertisement convening the meeting. The minutes of the last half-yearly general meeting were read and confirmed. Mr Murdoch read the half-yearly report aWf balauce sheet, as follows :— FOTFBTEKNTH B1F0B1! Of the Directors to the Shareholders of the Bank of New Zealand. The Directors beg to submit the ; following statement of the result of the past half-year's operations, and considering the many causes which have combined to lessen Banking Profits during that periody they trust the statement will be de'eitfttl satisfactory. The Net Profit, after making liberal provision for every bad or doubtful dependency, and the customary appropriations in reduction of Bank Premises and Furniture Accounts, amounts to £38,013 5 9 To which has to be added— Balance of undivided Profit at 31st March £8,042 10 7 Leaving now available for diviaion ... £46,054 16 4 Of which the Directors recom- . mend the following appropriation: To payment of Dividend at the rate of 10 per cent, per annum £25,000 0 O To Bonus of 5s per share, equal to 5 per cent, per annum 12,500 0 O To Balance carried to Profit aud Loss New Account ... 8,554 16 4 £46,054 16 4 The Dividend and Bonus will be payable at Head Office, Auckland, to-morrow, Friday, the 30th inst., and at Branches on receipt of advie«< For the Board of Directors, Thomas BtrssELt, President. ACHXREaJtXE BALANCE SHEET. At 30th September, including London Office Balances at 30th June, 1868. Dr. £ s. d. To Bank Stock 500,000 0 0 „ Reserve Fund ... ... 150,000 0 O „ Notes in Circulation ... 280,402 0 O „ Bills in Circulation ... 922,491 Oil „ Deposits and other Liabilities 1*728,898 ._ 6 4 „ Balance of Profit and Loss Account at 31st March, 1868 8,042 10 7 „ Net Profit for half-year ... 38,012 5 9 £3,627.846 2 7 Or. £ s. d. By Coin, and Cash Balances at London Bankers ... 667,706 211 „ Bullion on hand and in transitu 251,708 6.2 „ Government Securities ... 388,309 7 6 „ Noteß and Bills of other Banks 3,459 1 O „ Landed Property ... ... 21,477 9 8 „ Bank Premises, Furniture and Stationary 83,522 14 11 „ Insurance Account ..< 3,446 16 0 „ Bills Beceivable, Bills Discounted, and other debts due to Bank ... 2,208,216 5 5 £3,627,846 2 7 EBOFIT AND XOSS ACCOUNT. Db. £ s. 4 To Dividend at the rate of 10 per cent per annum ... ... 25,000 0 O „ Bonus ot 5s per share ... 12,500 0 0 Balance carried to Profit and Lobs " New Account" ... 8,554 16 4 £46,054 16 4 Cr. £ s. d. By Balance of Profit at 31st March last 8,042 10 7 „ Net Profit for Half-year after r writing off bad dabts ... 38,012 6 9 £46,064 16 4 BIBMVB JtWD. Dr. £ s. d. To Balance ... ... ... 160,000.0,0 £150,000 0 0 Cr. . £ s. d. By Balance from last statement . 150,000 0 0 £150,000 0 0 . „, , fWar.IKirBBTATioB, Audited. £ jAJ£BB Hoßßßxaoy. The CHAiBMAir said t Gentlemen, it now becomes my duty to move the adoption of this re» port. I am sure such satisfactory figures will not need any lenthy remarks from me. I call your attention to the fact that the profits for this half-year are improving. We present you with a net piefit of nearly £10,000 more thau at the last half-yearly meeting. But for the causes referred to ia the report — causes operating genernlly to lessen banking profits during the last half-year — the result would have been more favorable. I may say, gentleman, that although we have long since got out of the immediate effects of the panic and depression of 1866 and 1867 — although those immediate effects hare passed away, we have only just now, that is to say, in the last half-year, got quit of the legacies of bad and doubtful debts which were bequeathed to us by that time of depression — I cannot refrain from congratulating the proprietors upon the manner in wnich this institution has come through the severe, .strain. (Hear, hear.) What, gentlemen, were the facts? Almost without any notice whatever, one of the greatest commercial panics, followed by a long period of depression, that has happened certainly in our history for many years, or even in the history of other colonies, came upon us in New Zealand. We were then doing, and we are still doing the largest banking business throughout the colony ; having larger agencies, occupying a wider field our operations extending over a greater' area, than those of other institutions. We had no notice, or scarcely any of what was coming. How has this institution come but of the ordeal t How much capital has been lost? Not one shilling. (Hear, hear.) Tour reserve fund is intact , we have not had occasion to touch it or fall back upon it for any loss. We have been able to meet and pay you 15 per cent, of dividend, a position which we still maintain. We do this after providing for all ordinary and extraordinary losses out of current income. We have done it in the face of increased difficulties in the way of stamp duty on all commercial transactions — which has a tendency to lessen the number of them — and especially the stamp duty inflicted on our circulation, which amounts to no less a sum than £6000 a-year—a sum which

would be sufficient to mite your dividend what Jt formally was, namely, 17 per cent. (Hear.) Looking at all these facts it is a fair subject for cnngi-atu'-aiioh, and I do heartily congratulate you upon having come out offo severe a trial unscathed. That fact is the strongest proof of the sound position of the Bank and the able and successful management applied to the difficulties •with which it had no deal. (Sear, hear.) One of the special causes which have lessened our profit during the last half year has been the fact of our having largo balances in London, where money is now very cheap. We have had there very large balances — indeed unusually large — amounting to several hundreds of thousands of pounds, bearing a very low rate of interest. Ido not say this to you to hold out a hope of increased dividends in the future. I told you on a former occasion that the directory meant to adopt a policy of caution in the management of the Bank business. We could make a dividend of seventeen or perhaps twenty per cent, by pressing or pushing the bank's business, but we prefers policy of caution, doing only a legitimate business to risking for the sake of profit your capital. (Hear.) Though we might pay you twenty per cent., yet the time might come, when, in consequence we would be compelled to write off a large sum from your reserve fund. The Directors, therefore, confidently look to you to support them in their desire to do only a safe and legitimate business. The figures in the balance-sheet afford a strong proof of the large, extensive, and safe nature of the business the Bank is now doing, and I cannot but feel that ffeey recommend themselveß to the proprietors, without any need of further remarks from me. I may, in conclusion, state that during the past half-year we have lost one of our early coadjutors. Our friend, Mr Richard Sidings, has been removed from our board by death. His space has been supplied by Mr W. 0. Wilson, a gentleman who was one of the earliest supporters of the institution, who "will come before you nest half-year for election, when I have no doubt you will confirm the nomination we have made. I now move, gentlemen, that this report be adopted, and circulated for the information of shareholders. Mr Ch B. Owen seconded the motion for the adoption and circulation of the report, which was agreed to unanimously. The Chaxbmas, under the provisions of the deed settlement, in the month of October in each year one of the directors, that one whd has been longest in office, retires. Mr Stone is the director who retires, and it now becomes your duly to supply his place. The gentleman who retires (Mr Stone) has been one of the staunchest friends of the Institution, with whom we have worked with the greatest harmony. We regret his retirementj but he retires under the terms of the deed of settlement. We know, however, that his place is likely to be filled by a gentleman of high commercial standing, Mr James Tannoek Mackelvie, who has given notice of his intention of becoming a candidate for the vacant seat, and as he is the only candidate, he "will now be elected. Mr Mackklvib was elected a director in the place of Mr C. J. Stone. ■Mr MaCEEIiVXB, in returning thanks, said : I am obliged to the shareholders for the honor they have done me in electing me to a seat at the Board of Directors, and also for the high opinion Mr J&ussell has pleased to express of me and to Which I am not entitled. I need only say, gentlemen, that I will do my best to promote your interest, and that of the Institution to the best of my ability. The Chaiejiast : The next business is to supply the place of one of the Auditors (Mr W. I. Taylor) who also retires under the terms ol the deed of settlement. On the motion of W. J. Taxlob, seconded by . Mr J, O'Neii, Mr C. J. Stone was elected Auditor in the room of Mr Taylor. This concluded the ordinary business of the * meeting. Mr Jas. O'NirtL thought the shareholders would be doing some violence to their feeling if they were to separate without expressing the obligation they owed to the Chairman and his brother Directors, and to the officers of the Bank, for the great care they had taken, and the energy • they manifested in watching over the affairs and interests of the Bank for the last six months. The motion was seconded by Major Paul and ■ carried unanimously. The Chaibmak said that for himself ana brother Directors he had to thank the meeting for their renewed expression of confidence, and he could assure the shareholders he and they would continue to do as they had done in the past — their very best Mr Motsdoch had great pleasure in thanking the shareholders l'ur the vote they had just passed. The first care of the officers would be the success and welfare of the institituton, and he hoped that results would justify any future vote of the same kind. The "whole of the business having been concluded, the meeting separated.