Bank of New Zealand.

Taranaki Daily News, Volume XLVI, Issue 31, 6 February 1904, Page 4

Bank of New Zealand.

UAU'-YKAIUA \TEETIMI. i'lW Press Association.) \\KLLI NOTON. IVb. At t'lve hall-yearly nnvting of the flank oi New Zralaml, tin- chairman (Mr M-aj'vt) said it was merely ai formal meeting to fleet a director. Air Martin Kennedy was the only candidate and was declared elected. The Cijuirnuvn waid thv \olumo of busi'iuvw was being well maintained, and ewrything pmM«'d to the' year ending March .'{lst showing good results. More new accounts were opened duriiiig the hall-year ending September than lor some time past, lie n:a:!e In 'it f reference to lite last session's Irgishilion. which the directors con.-ddei ed satisfactory. Adsicesirom all parts of the colony ami London injdicaleid approvat of tlve Act. r rhe next annual uniting would be held in June instead of August, and the half-.warly meeting in December. 'Joey might imw, he trusted, .'egard the Pnni'% as finally removed from the li f £isla-tiu > truwl. Me took the opporiuiily to acknowledge the comUsy ami const-deration extended •bv the Colonial Treasurer and the Government to his colleagues and •himself during tlk'ir tenure of ollice. They heard occasionally of State cob trol, and it was right that lie should say that those who- interpreted this to mean inUrj'eivnce with the .aliuinistratton of affairs at the Dank could not he friendly disposed towards it. The fact was there was no interferenw by the Government to suggest; otherwise it would be a reflection on the integrity and independence of the 80-aid. With reference to the two million stock guarantees! by the Governmewt, the Rank was prepared to poy off a mill-ion as provided by the Act o'f last session, ami arrangements htad been completed at a very small cost by which tin- whole of the new stA>vk would Ik* taken up by the present holders at |-iir. It was gratifying to he able to make this announcement in view of the present difficult state of the London manev market.l Also in accoi'dance with the Act. such of the assets of the Board's debentures as were not already paid by the Bank, amounting to £311,000, would be redeemed at maturity in March next.

Mr Kennedy, in acknowledging the honour'conferred upon him in his reelection as director, ."aid he felt sure that the present position of the Bank was satisfactory, ami Ik? had the utmost conli-Jejice that the bulanccsrheets could be relitvl uponi. He said that because, lu/t withstanding the fact that the balance-sheets showed tliey were making 10 per cent profit on their present capital, which was only half a million, yet shares were only 10 per cent premium m market. That was an anoimalv, but it might be justified by the uncertainty that exi'.4n »a lo what will be the deficit in the Assets Itealisation Hoard, lie hei-d that the Ilank was making and haul been making for- the last three years something like £200,000 a yeai net profit. Those profits were being capitalised and were filling up the gup that existed some nine years ago. The Government woilM come into the Bamk with half a million after thy :ilst March next, and as<;ii.ii'.ii,g that the profits were as great next year as tliey were in the past tl.vy niiglut lie estimated at £23.j,0U0. Tltose profits would allow a vick-nd of 'f jrer cent, to be paid regularly, and also wipe out till 1 whole of tlx l deficiency of the Assets Board in two years more. At the last annual meeting the chnirlnait had announced that the estimated deficiency was. £-190,000, and that should this year be reduced to alKvut £:120,000. Therefore in the nt'xt two years the profits must wipe t'.ki lialance out, and the dividend should then lx- brought up to 10 per ic .'t. 11l 1907 or 1908 they ought lw receiving 10 j>er cent and coml:.-. are a reserve fund with from £75lI'O to £IOO,OOO. That reserve would bo available to pav olf the million loan which the colony is now guaranteeing lor the Bank. A \ote of thanks to the chairman closed the proceedings.