BANK OF NEW ZEALAND.

Taranaki Daily News, Volume L, Issue 61, 7 December 1907, Page 2

BANK OF NEW ZEALAND.

latest TELEGRAMS

HALF-YEARLY REPORT, l'er l'ross Association. Wellington, December li. At the hall-ye.uiy meeting of the Bank of New Zealand tile chairman referred to the recent fall in the jukl/li

of wool, hemp, mutton, tallow, ana jjolts. li(j did not consider tile values now obtaining left mueh cause for complaint. The fall was probably in syjii,pathy with the disturbed state of money market. Kates would improve with tile money market. Adverting to the financial crisis, he predicted that it the 7 per cent. Hank of England rate were maintained for long, money must I hard/m in New Zealand. The crisis in | America was attributed to New l'ork bankers trading on a narrow .margin of gold and the encouragement of vast credit. He issued a note of warning in connection with the system allowed by several large trading concerns in New Zealand of competing for deposits and allowing interest on current hank bal- | ances. He had recently examined the

published balance-sheets of seven companies and found their indebtedness in this respect was £535,510. If by statute banks were compelled to keep securities to the value of 6s 8d in the pound on their liabilities, payable on demand, it

was only right that a similar obligation should be cast on these lompanies,.' It was gratifying to say that the business and profits of the Bajnk hail so' far been well maintained, aind the prospects were encouraging. Mr. Martin Kennedy, who had just returned from; Home, had made himself thoroughly acquainted with their business in London, and thoy would be pleased to hear that they had passed practically unscathed through the recent trying times. During the recent year realisations of properties taken over from the Assets Board had been effected to the extent of £332,040. The total left now stood at : £585,565. The Board of Directors proposed to pay an interim dividend of five per cent, on both classes of shares. Mr. Martin Kennedy, being unopposed, was declared re-clected to the Board of Directors. Mr. Martin Kennedy quoted particulars of capital and reserves of otlijjf' banking institutions doing business in the colony, with a view to showing ■that if £l5O 000 was added to the reserve, the time had arrived for an increase of the dividend.

In reply to this, the Chaiijman of Directors quoted the paid-up capital and reserves of other banking institutions ns a set-oil'. He declared it was inadvisable to attempt to increase the dividend until such time as the reserves of the Bank of New Zealand fairly approached those of other institutions with which it competed. Mr. Kennedy said that while the reserves of other institutions exceeded those of the Batik of New Zealand, it bad to be remembered that their business consisted of operations which largely extended throughout Australia) where there was always the possibility of big losses through drought. It was in Australia that the Bank of New Zealand had lost largely ill the past, and, while it still carried on business there, it now dealt, in the gilt-edged class of business. The meeting passed a vote of thank's to the staff.