HALF-YEARLY MEETING.

Southland Times, Issue 1249, 13 May 1870, Page 2

HALF-YEARLY MEETING.

(From tha Southern Cross, April 28th.) The half-yearly meeting of proprietors in the Bank of New Zetland w is held at the Bank, Queen-street, at no m ye^terdav. Mr Thomas Kussell, the President, occupied the chair; and there was a good attendance of proprietors. Mr D. L. Murdoch, the Inspector, read the advertisement convening the meeting; the minutes of the previous half-yearly meeting, which were confirmed; and the seventeenth report, which was as follows : — The result of another half-year's operations enables the directors to meet the shareholders with a report which thoy trust will be considered satisfactory. The net profit of 31st March, after making most liberal provision for every bad or doubt- } ful dependency, and ap- j propriations in reduction of I bank premises and furni- j ture accounts, amounts to £40,974 5 6 J)o which has to be added — Balance of undivided profit at 30th September last 4,539 3 5 Leaving now available for divisfon £45,513 8 11 Of which the directors now recommend the following appropriation : To payment of dividend at the rate of 10 per cent. per annum ... ...£25,000 0 0 To bonus of 5s per share, * equal to 5 per cent, per annum ' 12,500 0 0 To balance carried to profit and loss new account ... 8,013 811 £45,513 8 11 The dividend and bonus will be payable at bead office, Auckland, to-morrow, Thursday, the 28th instant, and at branches on receipt of advice. The Directors think the time has now arrived for increasing the resources of the Bank, and with that view an early opportunity will be taken to call the shareholders together to authorise such increase of capital as may be determined on. — For the Board of Directors. Thomas Russell, President. Aggregate Balance sheet at 31st March, including London Office Balances at 31st December, 1869. Db. £ s. d. Bank stock 500,000 0 0 Reserve fund 150,000 0 0 Notes in circulation 291,126 0 0 Bills io circulation 903,869 0 7 Deposits .and other liabilities 1,670,479 8 4 Balance of profit and loss account at 30th September, 1869... ... ... ... 4,539 3 5 Net profit for half-year ... 40,974 5 6 £3,560,987 17 10 Cb. £ s. d. Coin, and cash balances at London bankers ... ... 424,060 1 6 Bullion on hand and in transitu 322,737 8 9 Government securities ... ... 184,050 0 0 Notes and billß of other banks 2,753 19 10 Landed property... ... ... 22,276 18 4 Bank premises, furniture, and stationery 85,921 14 1 Insurance account ... ... 2,536 10 4 Bilk receivable, bills discounted, and other debts due to the bank ...2,516,651 5 0 £3,560,987 17 10 PROFIT AND LOSS ACCOUNT. Db. £ b. d. To dividend at tho rat© of 10 per cent, per annum 25,000 0 0 To bonus of 5s per share ... 12,500 0 0 To balance carried to profit and loss new account ... ... 8,013 811 £45,513 8 11 Cb. £ s- d. By' balanca of profit at 30th September, 1869 4,539 3 5 By net profit for half-year, after writing off bad debts 40,974 5 6 £45,513 8 11 BESEBVE TUSD. Db. £ b. d. To balance ... 150,000 0 0 £150,000 0 0 Cb. £ s. d. Bylbalance from last statement... 150,000 0 0 150.0U0 0 0 * j-*. j f w - C.Wilson. Audited .... j AMB 3 Fabmeb. The Chairman : It is now my very pleasant and easy duty to ask you to adopt the report which you have just heard read. It has been my good fortune, since I have had the honor of addressing you from this chair, always hitherto to have been able to ask you to adopt satisfactory reports, and I am proud to say that I can do so now. The report is, in fact, a better one than we have been able to present to you for some few half-yeara past : in fact, the operations of the last half-year have enabled us again to raise to £8,000 the balance carried to the new account, which, during the half-year ending September, 1869, we had been obliged to trench upon so far as to bring the amount down to about £4,000. So successful have been the operations of the last half-year, however, that we have been able to restore the amount of the balance to what it was, and that, too, after making the usual reductions upon the stationery, furniture, and Bank premises accounts, so as always to keep them considerably below what the stocks and the buildings have actually cost the Bank, and after making, also, a more than usually liberal provision for all doubtful and bad debts. I think, therefore, that the results of the operations during the half-year, so far as regards the amount of profits to be paid as dividends, and the amount of the reserves made, cannot fail to be satisfactory to you. The figures given in the report do not need any lengthened explanation from me; but there are now one or two items to which I will call your attention, as I have no doubt that some of you compare the balance-sheets which you from time to time receive. You will observe that the deposits show a decrease of about £180,000 upon the half-year, and without a few words of explanation you would scarcely understand how it is that so large an amount should have left the Bank in so short a period. Of the £LBO,OOO, £120,000 is represented by one accountthat of the Provincial Government of Canterbury. The account of that Q-overnment has been removed to another Bank, and with it deposits amounting to £120,000 ; but, on the other hand, you will find that there is a corresponding

decrease in the amount of advaace3. As prudent bankers, we felt compelled to limit the advances on the rem >val of such an amount of deposits ; a corresponding amount has been withdrvwu from the public, and thereby the»"e ha^ been a loss to the borrowiug public — it all eve its, we ahall see by-and-bye whether that amount has not been lost to the borrowing public — for, having so much less money to lend, we have been obliged to lend so much less to the public of the colony. With that explanation, you will see that there has beeu no sensible diminution in the business of the Bank. Indeed, if you will compare the amount of the notes in circulation last half-year with the amount during the previous half-year, you will find that there has been au increase of some £8,000 or £9,000 ; and the amount of the notes in circulation is about as good a test as you can have of the activity of the Bank's business. The most important part of the report is its last paragraph ; and it requires some comment. The subject has from time to time engaged the attention of the Board ; but we have not before come to the conclusion to bring it under the consideration of the proprietors. We believe that the time has now arrived when an addition should be made to the resources of the Bauk, by a moderate increase in its capital. So far as our minds are made up on the matter at present, we shall, at a special general meeting — to be held a few months hence, after the regular notices under the deed of settlement have been given — ask the shareholders to authorise the raising of another £LOO,OOO of capital. If, at that meeting, the proprietors desire that there should be a larger addition to the capital, that desire can be carried out. We shall propose to you, so far as we are at present resolved, that the addition shall be £LOO,000; but what the amount shall be, whether the shares shall be issued at a premium, and what that premium shall be, you will have to determine. All such points are, by the deed of settlement, left to the proprietors themselves for decision. Our idea is, that the shares should be placed at a low premium ; and* of course, that the present proprietors should have the option of taking them up, the premium being such as to make it directly to the interest of the present proprietors to subscribe the additional capital. The amount of the premium — whatever you may decide it shall be — will go, not to the general profits, but to the reserve fund. The deed of settlement provides that the premium on all shares sold shall be so applied. Thus, the premium on the new shares will raise the reserve fund to the necessary amount, as against the increase of capital, the legitimate profits of the Bank, instead of being lessened by the sum needed to be added to the reserve fund, being left to be appropriated as dividends, after the usual reserves have been made. That is, I think, a very agreeable mode of providing for carrying on extended operations, without tating money out of revenue, and so lessening dividends. The small amount the proprietors pay as premium on new shares — • less, certainly, than you can get upon the shares in the market, as soon as they are issued — goes directly to aid in making the Bank what we desire, and what we feel sure you desire, to make it. The deed of settlement provides that if new shares are issued, the amount of them shall not be payable in instalments ; but the special general meeting of proprietors will have the power to prescribe particular times of payment, so that, practically, the whole power of controlling the issue rests with the proprietors. We have come to the conclusion to ask you to increase the capital, from a consideration of the very large transactions in which the Bank iB now engaged, as is apparent from the figures put before you, from time to time, in the half-yearly reports ; and also from a desire to maintain the present position of the Bank. We have now the leadiug business throughout tne colony ; we have to meet considerable opposition ; but we are determined, with your assistance, instead of in any way retrograding, to maintain the leading position the Bank now occupies. We have a further reason for desiring an increase of capital, because we wish, at all times, to maintain in London a sufficient reserve to preserve the credit of the Bank there at that high standard which it has now attained ; and this cannot be done without ample reserves in London to meet the very large demands made upon the London office from this colony. Though we at present intend not to propose to you to increase the capital by more than £100,000, it is for you to decide what shall be done ; aad, deeply interested as you are in the success of the Bank, we are sure that you will carefully consider the proposal, and will attend the special general meeting to discuss it, anxious to co-operate with us in promoting the extended and permanent prosperity of the Bank of New Zealand. I have now much pleasure in moving that the report be adopted, and be printed and circulated. Mr Gh B. Owen seconded the motion. The Chairman invited expression of opinion on the part of proprietors. The motion was unanimously adopted. The Hon. J. O'NeiI,M.L.A. : Perhaps it would be well that some one, on behalf of the proprietors, should express our satisfaction at the result of the half-year's operations. I think, sir, you were quite right in the opinion you expressed, that the report which has just been adopted will be received with satisfaction by the shareholders generally. Of course, those of us who reside in this part of the colony are quite satisfied as to the mode in which everything connected with the Bank is carried on ; but, perhaps if we were to separate to-day without a vote of thanks to yourself and your fellowdirectors, shareholders resident at a distance from Auckland might come to a different opinion. I can truly say I am thankful that, in the midst of so much i commercial excitement, and despite the reckless speculation which has be : en carried on upon our goldfields, the Bank tof New Zealand has been not only so

prudently but so successfully conducted. I am glal to have heard that the direc- -. tors inteud to convene a meeting, and to * propose an increase in the capital stock of the Bank. If s'lggeitions from individual shareholders will be received, I should like to say I should be glad to see an increase tq double t&3 capital, or of £250,000 at leash, so that we may have the means of establishing branches in other c^lonisa. Although our institution raw be looked upon as the national bank of Nw Zealand, still, the colony has taen invaded by banks from oth^r co'onies ; and I do not see why we should not; resolve to tike part of the business of these c limits. At present that is not possible ; but if we could see our way to doubling our capital, to increasing it by a quarter of a million, I feel sure that the directors would be able, td do much better thai can now be dona, fW this cobny at all events, and for ttie interests of the individual shareholders, twill move, " That the best thinks of the meeting be given to the directors, and to I the officers of the Bank, for the exertions they hare made, and their general attention to the interests of the proprietors, during the past half-year." Mr P. Q-race seconded the motion. The Chairman— We are only too happy td hear the suggestions of any proprietor, as to the proposed increase of capital ; and I am sure that any such suggestions will receive very careful consideration from the Board. . Mr Cherry — I quite agree as to the advisability of increasing tho capital by a large amount ; but I scarcely think it would be desirable for us to extend our : operations to any other colony or colonies. ! I can foresee a difficulty, if a very large increase ia resolved upon, in the fact that new shares cannot be paid up by instalments ; and I can conceive the object of ! the directors, as the shares will hare to be paid up at once, in not proposing a very large increase. Perhaps, on. the wbole, it will be advisable to make this increase £250,000. Mr James Williamson— My opinion is, that the proposed increase of capital is a move in the right direction ; but Ido not altogether agree with Mr o'NeilL Our object, as directors, should not be, as I believe, to seek fresh fields, out of this colony. There is, here, room for a business as large as any we can hope to do ; and what I want to see is, the Bank of New Zealand made in reality what it is in name— a Bank able to do the business of the colony. If the special general meeting shall hereafter determine that the increase of capital shall not be limited to £100,000, no doubt the directors will be ready to meet their views, and to take power to raise such amounts; at such times, as they believe such as will enable a remunerative return to be made to the proprietary. If we increase our capital, we must do more business, in order to maintain our dividends ; and lam sure that we should not wish to see capital raised, unless we believed there was a fair opportunity of being able to pay upon it a dividend at least equal to those we have been paying. The motion was unanimously adopted. Tha Chairman — For the directors I can say that we always accept your thanks as we are sure they are really meant. The vote now adopted will supply to us another motive for that attention to the affairs of the Bank which, we have always given, or have constantly striven to give. We have felt pride in endeavoring to promote the interests of the Bank in every possible way ; and we shall continue so to endeavor. The Inspector (Mr Murdoch)— On behalf of the staff of the Bank, I begto return you our very best thanks for the vote which has just been adopted. It will, I am sure, be as satisfactory to my fellow , officers as it is to myself, to have "the assurance of your continued confidence j and the beat evidence of our appreciation of your good opinion will be given by increased endeavors on our part to deserve it. . This concluded the business of the meeting. ' _