The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER THURSDAY, DECEMBER 18 1913 BANK OF NEW ZEALAND.

Stratford Evening Post, Volume XXXVII, Issue 92, 18 December 1913, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER THURSDAY, DECEMBER 18 1913 BANK OF NEW ZEALAND.

The interesting address delivered l>> Mr Harold Beauchamp. Chairman of Directors of the .Bank of New Zealand, at .Bank’s half-yearly, meeting in |Wellington to-day, is especially important at this stage, dealing as it doe,; | with the new banking legislation in addition, to current finance. Mr Beauchamp, on questions affecting the Jat!ter, is a recognised authority whose pronouncements bear weight and whose, direction and advice have, on many occasions, proved of high value to the ■ Dominion. His anticipations regarding the financial situation and outlook, as set forth at the Annual Meeting of the Bank, have been ,instilled by events, the tightne-s in the money market still prevailing, though there is now reason to be somewhat 'more optimistic regarding the future: Deal ing with the banking legislation, which was effected during the session of Parliament just ended, Mr Beauchamp expresses the view that this new legislation has satisfactorily defined and conserved the interests alike of the Bank, the shareholders, and

the State, and this is largely endorsed ■by Mr Martin Kennedy, in his remarks on the subject also made at to-day’s meeting. Briefly summarised, the new Act provides for paying off the existing million of Government guaranteed stock and the issue of new 4 per cent, debentures for the same amount with i a currency of twenty years, for the, redemption of which £50,000 a year is to be set aside from the profits of the bank and vested in New Zealand Government bonds. Provision is made for an ultimate increase of capita I amounting to £3,000,000 by the tissue of 150,000 “B preference shares,” rff £6 13s -Id each, fully paid up, which the Government have the right to take up, • and 300,000 ordinary shares of £0 13s 4s each paid np, which are distributable among the shareholders. These shares will be issued at such times and on such’ terms and conditions as the Board, [with, the approval of the Minister of Finance,, may prescribe. It will be remembered that Messrs Martin Kennedy, Watson, C. P. Skerrgtt, and others endeavoured to obtain a modi- ‘ fication of some, of the provisions oi ' the Bill in the shareholders’ interests, and a compromise was effected with mutual concessions between the shareholders and the Government. Mr I Kennedy holds that the shareholders lltave obtained a substantial advantjiijre in the undertaking to call np £3 ids' Bd•'per share of uncalled capital iwithin a certain period, and considjers that, viewing all the cirenmjtttamios, the ordinary shareholders may

congratulate themselves upon the I terms of the settlement arrived at. | It will thus be apparent that although' keen feeling was shown in some quart-; ers against Mr Beauchamp’s propos-j nls as embodied in the Bill, this has been overcome and harmony prevails, though the measure has become lawj practically as it had, been drafted in the terms of 31 1* Beauchamp’s pro-! posals. ’ The Bank’s Chairman refers naturally to the unfortunate labor upheaval which has caused such serious dislocation and loss to the country, and gives some tolling facts and figures regarding the folly of the strike as a method of bettering the conditions of labor. W hat he has to say on the matter is well worthy of consideration. i