BANK OF NEW ZEALAND.

Taranaki Daily News, Volume LI, Issue 293, 5 December 1908, Page 5

BANK OF NEW ZEALAND.

HALi-IEARIA' MEETIXI.;. THE TRADE OUTLOOK. By Telegraph.—Press Association. Wellington, December i. The'half-yearly mooing of the wn of New Zealand was held to-day. The Chairman, Mr. Harold' iicati champ, said the profits oi the Hank fo - the six months ended S3ptember Jli were exceedingly satisfactory, then was reason to anticipate that the cmrent financial year would compan 'aruurably with its predecessor, i'ht fombiaed advances and discounts of tin Banks transacthg business iu iue Do liinion were the highest on record, ocing on September 3(1, C21,217,!».>!t. compared with £lB,-t«8,184 at the same date last year—an increase of £2,71!)770. Private deposits decreased by £1,344,!)95 and Government deposit's uy £887,11)3, making a total chaii"e of •tJ,t151,9«3. Altered relations between bauks a-id customers were brought about by a sudden and unexpected fall in the pr.ces of wool and other primary products. Much land was Lil", purchased upon the assumption that at years would continue indelinitclv Ju the towas there was a similar tendency. Urban and suburban i aild i ma "lmlesale anu Wttd Irm, to trade beyond their means and to indu.ge in extravag * e of living. Witn lue curtajlj «"'« ad\hTT yin , ***** and the hnancial equilibrium would

sooa he restored. There was a stru,, demand for butter and cheese eW; before the close of the st-i ?on. There had also been a marke" | improvement in the values of Hu „i ,! Hr£!: l , AUBtra , i V ad Ne » Zealand. He could scarcely look for a recovery meat until trade revives i n Great Britain and America. A wonderful revival of industrial activity was anticl Sh ed J n „ jimeric !' *** ™ould naturally have a material affect upon the Domraron This time last j£J th Sank of England rate wae 7 per cent To-day it was t% per cent., and monev in London was a drug on the market. Way to day loans had been available « 'A to % per cent, and 1 per cent, had been the charge for a week, when the working rate for three months bills had been 1 7-10 per cent. In spite of these unusual monetary conditions it was sti I hard to float loans on account ~ public bodies for the reason that the Bnt,sh pubhc were shy OJ such investments, there was a large amount of •undigested syndicates and stock brokers tntil these were absorbed public bodrea rn the Dominion could not expectto receive much encouragement in London. The time was not far distant when it would be desirable to consider the question of increasing the capital of the Bank, and thus bringing it inore into line with the other banks veproRented in the Dominion. ELECTION OK DIRECTORS. • Out of the profits of the past half of were two candidates—JXr William Watson, who had been a member of the

Board smce 1894, and .Mr Herbert l> .Kan-son. The ballot of shareholders re suited :-Wat*on 55,334, Rawson 4074 DIVIDEND. Out of the profits of the past half oi the financial year the Board declared an interim dividend of 5 per cent, on ■ both preference and ordinary shares. ,-lne dividend mil be payable at Wellington on Monday next and at branches on receipt of advice. Mr. Watson returned thanks for his election as director. On the question of increasing dividends, he said, inanv shareholders had written to him. If he saw that the Bank was able to pav increased dividends as well as substantially add to its reserve fund he would, ne said, advocate it on the Board. Few of the general public understood the position of ordinary shareholders in the Bank of New Zealand. Mr. Martin Kennedy said hitherto he had not asked for an increase of dividends, though he had advocated it for •the near future. He declared an increased dividend would be asked for. Strictly speaking, tlie Bank, on a eapi'tal basis of a million and a half, was only paying 5 per cent, at present. Mr. T. S. Weston said he hoped shareholders would be advised of any intension to increase the capital, fhev did not want a repetition of what' took 'place in 1903. The Chairman, in reply, dealt with the relative positions of the government and private shareholders. Mr. Kennedy, he said, had put the relationship id a light that was scarcely fair. •Although the Government held only -.£500,000 preferential shares it also .belli a guarantee of €1,000,000, and was therefore interested to the extent of £1,500,000. It was impossible to get away from the question of repayment in 1914. Until the guarantee was extinguished the (iovcrnnient had a right to l»c represented on the Board to the amount of the guarantee plus the amount of the share cuuit.il which it held.

The meeting concluded with votes of thanks to the chairman and stair.