BANK OF NEW ZEALAND.

Taranaki Daily News, Volume LIV, Issue 138, 2 December 1911, Page 2

BANK OF NEW ZEALAND.

HALF-YEARLY MEETING. ACTING CHAIRMAN'S ADDRESS. By Telegraph—Press Association. Wellington, December 1. The statutory half-yearly meeting of the Bank of New Zealand was held at Wellington to-dlay. Mr Martin Kennedy, acting-chairman of directors, said:— Gentlemen, —Thus being the statutory half-yearly meeting of the bank, as you are aware, no statement of accounts is presented. The principal business is the election of a director to fill the vacancy caused by the retirement of Mr Martini Kennedy by effluxion of time, but who, being eligible, offers himself for 're-elec-tion. He has given the necessary notice, and, there being no other nomination, I now declare him duly elected. You will be glad to learn that the half-year's profits have .been well sustained, and compare favorably with those for corresponding periods of recent years. Having reason to anticipate that the second half of the year will prove proportionately 'good, we have declared an interim dividend of 0 per cent, on all the shares of the bank, which will be payable at the head office, Wellington, on Monday, 4th instant., and at branches on receipt of advice. The chairman, Mr Beauchamp, and my colleague, Mr Watson, obtained leave of absence from the board and left for London—Mr Watson on the Oth April, and Mr Beauchamp on 23rd June. Mr Watson is expected back this month, and the chairman in February next. Both gentlemen have .been associated with the London board, and doubtless will have rendered good service to the banik during their absence from the Dominion.

On the eve of Mr Beauchamp's departure from the Dominion the board appointed Mr M.. Kennedy to be actingchainnau in the absence of Mr Beauchamp. It lis with very deep regret that I have to announce the death, in September last, of Mr W. 11. Quick, who had occupied a seat on the board for four and a half years. The board' has placed on record its appreciation of the good services rendered to the Ijanlc by Mr Quick in the capacity of director. Mr Quick having been one of the four Government representatives, the vacancy on the hoard has been filled by the appointment by the Government of Mr J. M. Johnston, of Palnierston North, whom I have pleasure in introducing' to you to-day. Mr Johnston has had some 35 years' experience of business matters in this Dominion, Of this, l(i years were spent in the service of the bank. During the year there has been a good demand for money, and this demand has been well responded to by the .hankins institutions in the Dominion. The following comparison of the advance, figures for the September quarters of 191T and 1910 shows the increase for the twelve j months:—

—an increase of £3,254,004, If will be observed from the foregoing figures that we have obtained a fair pro" prot'ion of the increase; and this, in view of the keen competition for advance business, may be considered satisfacwny. Some comment lias recently been ii ndc on the position shown .by this ba-i.k in

ttie Government Quarterly Returns, in that the assets in the Dominion, as shown, were less than the liabilities. To any person not familiar with banking finance, the inquiry would seem quite natural, and as every person in the Dominion as concerned in the affairs of the bank, dt will perhaps not be out of place for me to explain that, in view of the large amount of our deposit liability, it is essential to a policy of prudent and safe banking that a proper proportion of our assets be kept in a liquid form, and as this cannot be accomplished in the Dominion in a remunerative manner, we find it advantageous to hold such funds in London, where they are revenue-hearing, | and whence they can be transferred exI peditiously whenever they may 'be r»- ] | quired 1 . j I have much pleasure in stating that, 1 .by a recent sale in Auckland, we have disposed of the largest of the remaining Assets .Realisation Board properties, and that those left in our hands now represent only a. little more than £IOOO in value. This will, I am sure, 'be satisfactory information for shareholders. I may mention that these assets, when the board was constituted in 1895, amounted to £2,680,000. You will be interested to hear that, owing to the considerable demand for extended 1 banking facilities, we have since April 1 last opened, in various parts of the Dominion, four new branches and six new agencies, and have converted five agencies into daily branches.

Regarding the trad'?, and commerce of the Dominion, the following figures show the relation our imports bear to our exports over a period of five years:— Excess of Excess of Exports. Imports. Exports. Imports. £ £ £ & 1906-7. 19,891,846 16,071,887 3,819,959 1907-8. 16,370,587 17,750,868 1908-9. 18,700,156 14,916,005 3,784,151 1909-10. 21,958,964 16,101,886 5,857,078 1910-11, 19,912,656 18,611,960 1,300,696 The above figures are for the period ending September 30 ill each year. As regards the commercial outlook: Trade in the Dominion, which has been somewhat slow throughout the year, I am .glad to say, shows considerable revival. The exports for 1000-10, which were easily a record for the Dominion, have not been maintained for 1010-11, but the two years taken together show a total of £41,871,620—an excess over imports of £7,157,774, or equivalent to | an excess for each of the two years 'Of I £3,578,887; or, if we take the last three | yeius combined, the excess of exports over imports leaves an average balance of £3,647,308 for each year, which may be regarded as very satisfactory. I deem it advisable, however, to call attention to the increase in advances of three and' a quarter millions for 1911 over 1910, and to the growth in the import figures for 1911 of £2,500,000 over the previous year. These movements, if continued, will naturally lead to stringent monetary conditions, and it would be well that merchants traders, investors in land, and the community in general should keep that contingency in view. With regard to the industrial outlook, it is to be regretted that, in some parts of the Dominion, the lambing this season has not been aa good as usual. Talking the Dominion as a whole, however, the result is generally up to the avorage. The sheep returns-, just published, give no increase, but show a slight decline of 273,494. This result may be taken as the natural outcome of the sub-division of sin ep stations, and the more valuable portions of such estates being used as small dairy farms; and it is gratifying

to notice the great expansion of dairying in the Dominion and the high level maintained in prices of butter and cheese. Agriculturists, too, have reasonable justification for anticipating a satisfactory season, with fair prices for the 6taple products of the Dominion. The wool market, which tor the past few months has been somewhat depressed, is showing signs of revival, the prices so far realised at the current London sales being a distinct advance on the closing quotations of the previous series. With a more settled stat*. of European affairs there would seem reasonable ground for anticipating generally improved trade conditions, and as a consequence possibly a further advance in wool prices. In that case exports from the Dominion for the year ending September 30 next would probably equal, if not exceed, the average of the last three years. Coupled with the easier position 111 the Australian Commonwealth that will most likely follow upon the recent satisfactory rainfall that has taken place there', such improvement would no doubt go far towards relieving the apprehended monetary stringency in Australasia next year. Before sitting down, allow me to thank you sincerely .for again electing me unopposed as one of vour two representatives oil the Board- of the Bank.

I accept it as a very high compliment indeed, especially having already completed a period of seventeen yea.rs in that capacity. During that period, the progress of the Bank has been truly phenomenal. For the first year, ending 1895, the balance-sheet showed a net loss of £37,350. Thei next year gave a net profit of £132,193, with progression each subsequent year, and the last five years have averaged upwards of £351,000; and the deposits, which were in 1895, £7,222,202, have gone oil increasing and at March 31 last stood at £17,880,746. Truly it can be said the progress of the Dominion is also the progress of the Bant. After the chairman's address, Mr. Knight congratulated the acting-chair-man on his re-election, and said it was a satisfactory .sign to see a reprcsenta-

tive of the shareholders' interest ou the board at the head of the bank's affairs.

Mr. Kennedy, in acknowledgment, said that he regarded his position as a compliment ou behalf of the shareholders. It might also .lie taken as an indication that the lilies between the shareholders' and the Government's interest in the bank would not be so strongly drawn. It, however, bad to be remembered that the Government's > harts were preference shares. No other reference was mailc. and the meeting concluded with hearty applause.

Advances and Discounts. 11)11. 1010. Bank of X.Z. .. 8,280,03!) 0.000,001 I'nion Bank of Australia, Ltd. 3..'i40,S32 3.22-2.!).")8 Hank of N.S.W. .. 3,1 M,3o2 2,310,403 Bank Australasia .'i.2'30,7S4 2,7!14,8SS Xalional Bank of X.Z,. Ltd .. 3,230,0,-53 2,070,500 £21.431,000 3*18,177,590