Page 14 Advertisements Column 2

Sun (Auckland), Volume III, Issue 622, 26 March 1929, Page 14

E 3a. o K % % A r “A CLEAR CUT FINANCIAL PR OPOSITION” Thirty-five years ago the number of Banks operating in New Zealand was Taking the import and export figures of that year we find the total 15t millions. In 1913 the volume of this business had increased to 42 1 ; millions ; with still six Banks operating. Last year, 1928, the volume of business reached the stupendous sum of £109,000,009 with no increase in the number of Banks to handle the increase. Australian figures, too, have increased correspondingly. In 1907 the figures stood at £165,0(H),000 and in 1927 they were £446,000,000. In the January 21st, 1929 edition of the Alexander Hamilton Institute “Business Conditions” it is stated : “An analysis of the situation demonstrates that there is some truth in many New Zealanders’ contention that the existing Banks are not able to cope fully with the demands of credit which the current requirements of the country warrant.” It is to meet the very obvious need for a new Bank that the Mercantile Bank of Australia Limited has been created. Coming into the field just at the time when a very evident period of prosperity is ahead, this new Bank represents an exceptional opportunity for investment. Bank shares provide one of the safest soundest and most profitable channels for investment available to-day. No Bank operating both in Australia and New Zealand paid last year less than a 12%% dividend on its shares, while the average dividend of these Banks was 14%. Shares in existing banking organisations, however, naturally stand at almost a prohibitive premium. This issue of The Mercantile Bank of Australia Limited is exceptional in that it provides a golden opportunity of buying ordinary bank shares at par. These shares provide the three cardinal qualities of desirable investment — namely Safe Principal, Satisfactory Income and Marketable Security. Shareholders’ funds of the Banks transacting business in Australia and New Zealand have almost exactly doubled in the past 10 years, the increase being from 39 millions to 78 millions. To-day purchasers must pay considerable premiums to participate in these funds. Similarly, if you fail to buy shares in this new Bank now, you will have missed a chance of purchasing Bank shares without the payment of a premium. THE MERCANTILE BANK OF AUSTRALIA LIMITED. V / Auckland Representative: S. M. STUART. .Public Accountant and Financial Broker, 25 Ferry Buildings, Quay St., Auckland. Phone 46-744. New Zealand Representative: THOMAS TAYLOR, A.M.P. Buildings, Wellington. F.O. Box 218. SEND THIS FOR FRE The Mercantile Bank of Australia Ltd. Registered under the Companies* Acts. 1 899- \ 91 8. South Wales. Capital £3,000,000 Divided into : 200,000 Cumulative 6 per cent. Preieronc.Shares of £5 each . . . . 11,000,000 200,000 Cumulative 8 per cent. A Preference Shares of £5 each . . . . £1,000,000 200,000 Ordinary Shares of £5 each .. £1,000,000 £3.000,000 50,000 A Preference Shares are now being offered for subscription at a premium of £l. 100,000 Ordinary Shares are now bemg offered for subscription at par. 4 50.000 Shares are being held in reserve. THE A PREFERENCE SHARES earn- not only the right to a fixed Cumulative Preference Dividend exf & per cent, per annum, but also the right to share ratably 'with the Ordinary Shares in the profits of any year available for Dividend after a Dividend for that year of 8 per cant, has been paid on the Ordinary Shares. They are alao preferential both as to Dividend and Capital over the Ordinary Shares. These Shares are now being offered for subscription at a premium of £I . They afford a very attractive investment. THE PREFERENCE SHARES carry the right to a fixed Cumulative Preferential Dividend of 8 per cent, per annum, but are not entitled to shore in surplus profits. They wse preferential both as to Dividend and Capital over all otbe*Shares in the Company. Comparatively few of these Shares have been issued, and it is not proposed to offer any more for subscription at present. Interest at the rate of 7 per annum wifi be avowed on all monies paid in advance of calls. AUSTRALIAN DIRECTORS Percy Freeman. Esq., Company Director, 58 Margaret Street, Sydney. Arthur C. Hop wood. Esq.. Company Director, Wiffmm Street, Double Bay. Harold C. Macfie, Esq., Chartered Secretary, 14 Martin Place, Sydney. Archibald Watson, Esq., Vice-Mayor of Brisbane. Governing Director Messrs. Queensland Bedstead Co., Ltd.. Milton Road, Brisbane. Charles Blume, Esq., Glazier, Windemere Road. Ascot. J. R. Urquhart, Esq., Company Director, 3T Queen Street, Melbourne. A. Thomson, Esq., Solicitor, 422 Collins Street. Melbourne, T. Obbinson, Esq.. Investor. 44 Pasley Street. South Yarre. Colonel Thomas Flintoff. 190 St. George's Terrace, Perth. Dr. A. Syme Johnson, 252 St. George’s Terrace, Perth. NEW ZEALAND DIRECTORS; Robert Malcolm, Esq., Merchant, 9 Lichfield Street, Chnatchurch. Harry Reginald Jenkins, M.P.. Garden Road, Remuera, Auckland. Albert Edward Fowler, Esq., J.P., Retired (late Comim)sioner of Taxes), 6 Watt Street, WellingtonNorman Berridge Spencer, Esq., 8.A., LL.B.. Barrister and Solicitor, C/o Spencer and Spencer, 21 Swanson Street, Auckland. Frederick Edmund Jones, Managing Director, . H. Simms and Sons, Ltd., Merchants, Christchurch. OBJECTS OF THE COMPANY. The Mercantile Bank of Australia Limited has been formed for the purpose of transacting general banking business. including current and fixed deposits. Bills of Exchange. Letters of Credit, Drafts, etc., etc. It will open Branches in the various States of the Commonwealth and in Main Centres in New Zealand as well as in country and provincial centres where sufficient inducement is offered. DIRECTORS. The Board of Directors of the Bank are all men of distinction in the w'orld of finance. Indeed, the Directorate is unique for the practical knowledge possessed by every member of his duties. IMMEDIATE BUSINESS. Deposit accounts totalling more than one 'million pounds annually have been promised the Bank immediately, and there is reason to believe that additional substantial business will be offered before operations commence. Further, the influence of those associated with the project may be relied upon to bring in many other important accounts. NO FREE SHARES. There are no free Shares issued to Directors or anybody else. All Shares issued must be paid for in cash. SHARES AT PAR. Glance at the Share list price of any Australian and New Zealand banking Shares to-day and you will find that they all stand at a considerable premium. Remember that although much of the capital has been issued above its nominal value, the original Shares were issued at par. Mercantile Bank of Australia Limited Shares are available now at par. It will be many years before such a golden opportunity of buying Bank Shares at par will again be offered to the public. Act now. As far as Bank Shares are concerned, there will be no ** later on.** SOURCES OF PROFIT. If we take the experience of other Banks as a guide, shareholders may look forward to all or any of the following:— 1 . An increased dividend. 2. A bonus issue of Shares. 3. Periodical issues of new capital on terms specially favourable to shareholders. The Wellington “ Evening Post *’ of 1 6th March states: “Popularity of Bank Shares with New Zealand investors has been most marked during the past two years, and it continues. The returns on market prices are low, but there are usually expectations of some future benefits to which is to be added the confidence reposed in the managements and strength of the Banks. On market price the return to purchasers of Bank Shares vary from about per cent, to 5 per cent., nevertheless the value of Bank Shares is popularly regarded as inferior only to Government and the cream of local body debentures- Another inducement to take up Bank Shares is that if the need arises they are generally realisable at a premium on purchase price.” NOTE. The complete copy of the Memorandum of Association is open for inspection at the representative’s office in each main centre. RROSRECTUS Send to your local district representative—see name above—or to the New Zealand representative Mr. Thomas Taylor, A.M.P. Building, P.O. Box 218, Wellington. Please send me the full prospectus of The Mercantile Bank of Australia Limited, Name Address

BROWN EWING, LTD The directors of Brown, Ewing: and Company have declared the usual dividend of 4 per cent, on ordinary shares and 3 per cent, on preference shares for the half year.