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BANK OF NEW ZEALAND.

ANNUAL MEETING. AN INTERESTING REVIEW. TIIE COLONY'S POSITION AND PROSPECTS. By Telegraph.—Press Association. Wellington, Last Night. Air. llarold Beauchamp, chairman or the Bank of New Zealand, in moving tile adoption of the report and balancesheet at the annual meeting, said that in pursuance of the policy outlined last year, the directors desired to build up a strong reserve, and hail allocated £2OO, 000 out of-this year's profits, making the total £450,000, and Willi the amount carried forward .£504,099. There had been a gradual expansion or deposits, and as the rale had recently been raised by a ball" per cent the amount would probably lie increased. Of late years a large portion of surplus funds had been invested iu short leans and other lnpud securities in London. Owing to the demand this year in the Dominion betler rates were procurable than in Lo ldou, but the directors still held it was | uiosl derivable to maintain a strong position in that city. The surplus lull Is 1 can be readily utilised there, and, oy reason of the liquid nature of investments, are readily available when wanted. Here there was a certain amount of stringency experienced in the local market since the beginning of the year and rates had hardened, the recent- fall" in produce being the cause. The Bank was pursuing a conservative policy, the aim of the directors being to meet legitimate requirements of their own customers. Since tile assets of the Realisation Board's account were taken over in I'.IUO the amount was reduced from £832.457 to £437,780, at. which ligure it stood on -I une 15. The Colonial Bank properly and premises had been reduced to a few hundred pounds, and now disappear being merged ill the general premises account. The directors had submitted the state of the Provident Fund to a London actuary with a view to Strengthening it to enable more liberal provision to be made for retiring ollicers. Upon his advice £5009 was paid into the fund, and it was the intention of the Board lo continue this each year while conditions permit. The pension fund now compared very favorably ivitli other balil;s, and would help to attract able ollicers.

Pensions would also lie jiroviilcil for messengers. 11k; chairman devoted Some timr to the recent full in pru-i's conM'!|iicnt oil the American panic, which lie estimated «t more than million and a-half. This w'ndd all'ect land values, and a drop ill .some respects would I>e no evil, especially in building land. I'or farming land there was still an excellent demand. and prices would probably recede a litile when the ctlrci of the graduated land tax was felt., and native areas come into tin- market as the result of tlio Native Land Commission'- lalior-. The outlook, lit' adniitti .!. v.as uol so r'Osy as la-t year, but aliir (en or twclvi' good years (lie commuiii! y corilil stand a slight, busine-» cheek without trepidaiion. lie ijiioted ligiins showing the increase i'l

the national wealth, and the decline in bankruptcy return* , which, lie said, piv-vcd that at no period were we better situated to face a set-back. Jle did not believe it would last long. From America. reports were reassuring, and money had cheapened in London. .Still, caution should be the watch-word. .Some houses had been over-trading and indiscriminate in giving credit, and fanners n;'d been paying exivssive prices tor land. The (-overiniient had appointed Air. .1. 11. Kt id a director vice .MaH, who resigned in con c<|uence of jilhealth. Jn recognition uf the good work «f the stair, the Hunrd hid grunted a !i"iiu.s «.|* .1 per cent, on salaries.

-Mr. Watson, who seconded the molion, -aid when lie first became connected witli (lie Jiauk in JNn.j, it was his unpleasant duty to report to the Colonial Treasurer that out of XI 1,000,000 socalled assets le.-s il'< f. ii.a I[' were profit, earning, while intere,; was being paid on deposits, etc., aggregating X(i,:«i0.00o. Now t lie. had proiit-e.irnuig assets of over cryiOOJilJU. all sound and good, against, interest-hea ring liabilities ol about C N.I lIHJ.OI 10. This showed what an up-hill baltle had been fought. To day I heir profit was over c:iOU,ODO, and no doubt -hareholders might think thev Meie entitled to a better ret urn for their money. He did not believe tliov would have to wait much 'longer, but they wallled a :-oiid rcs.M'w iirst, || tlley could build that up and pay increased dividends he would be in i'avor O! doing -M. Mure capital, however would be required in future. 11,. explained tec position of the (iovermnent and shtirehohlers. and quoted a speech of the I runners last session to show the (Joveriiincnt had no intention ol interfering with shareholders' rights. Xlie Government guaranteed a 'million ■ f slock, and had four directors to the siiaiellohlers' tw'O, but when that stock was paid oil', it was reasonable to'sunpose the shareholders would have more representation. In fact, he thought Hiev should have more now, thoa-h lie recognised (lie (,'overiiineut sluuihrhave clbeient cheeks and fair representation °n Die directorate.

Ml-, licauchnmp. in acknowledging ~ r r ula "'l'" 1 ' 1 ''^m^tlle '"•'u.iger "t he I !aul;'s produce department in London, dated April r, ainbmg the fall wool („ tlio American i,hi « r <« iooi ; :,;r j- ! lo I lil same quarter at 110 verv sl'iit"! to ' Tl, r C' 11 "" 111 lh " • improvin" •uni i!r 1 l IV t2^° II V MIM! lirst eoli'imo.liU- * ll*. lit. It Uils O.VhPCted flip 'hlvn'r'"-!' 1 w °" Ul '""' n ' ,fit ,I '" m l,!( ' 01 1» London ,| I; , WJI | JV , I'l-anco-lintish Kxhihition. ' >'• l\i'l(lj|.|i (ilou , r|](; „ s||() he Government i.ad raised » y 1-ostOHice Savings Hank I ~ h .I'er cent;, and !„d the Bank Liscd I'ild a fair juw of these.,Vpo"i U h *" C ' "uwr-r 1, of thc pn,iiu '"" • t (,l to ,0 per cent. paid by other .... jI""' «'»t. divided was r ■' ""'re eipntaU" rei.re-M'nf 1 "II the Hoard \y|„. n fi, l ; husis „r " 11111 li "-' present, Cl.iioo.odo. '• 11 M;ls ''"iuced in

A motion j,, . ~ d.'sir!! hHie,- I !''' 1 ,I,lwlol 'S d'd "<■ I'ighci remuneration "he iter** 1 to u,e ami the stair, ' mau W

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19080627.2.7

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, Volume LI, Issue 160, 27 June 1908, Page 2

Word count
Tapeke kupu
1,021

BANK OF NEW ZEALAND. Taranaki Daily News, Volume LI, Issue 160, 27 June 1908, Page 2

BANK OF NEW ZEALAND. Taranaki Daily News, Volume LI, Issue 160, 27 June 1908, Page 2

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