The Daily News. SATURDAY, JUNE 19, 1915. THE BANK OF NEW ZEALAND.

Taranaki Daily News, 19 June 1915, Page 4

The Daily News. SATURDAY, JUNE 19, 1915. THE BANK OF NEW ZEALAND.

The remarks mode by Mr. H. Beauchamp, chairman of the Bank of New Zealand, on the occasion of the annual meeting, which took place at Wellington yesterday, arc well worthy of note. Mr, Beauchamp lias always taken advantage of these meetings to express his views on matters concerning tiie welfare of the Dominion, and yesterday. was no exception to the rule. Naturally, the war took first place in the chairman's remarks, in consequence of the unprecedented conditions under ' which the finances and trade of the Empire are being conducted. Evidence of this is seen in the. payment of £13,000 more than last year for rates and taxes, largely due to the increased note tax, consequent upon the temporary expansion of the note circulation. It is satisfactory to receive Mr. Beauchamp's assurance that the measures adopted by the. British Government to meet, the financial difficulties precipitated by the war have proved, on the whole, effective, and that Britain has preserved its traditions and maintained throughout, a free gold market. except for exports to enemy States. He pointed out that the regulation made, by the British Government closing the London money market to all issues of capital for undertakings not connected with the Empire had caused the vast stream of credit constantly flowing to London to lie acrunmhited there, as in a financial reservoir, the outlet of which is controlled by that Government, therein' assuring (lie. essential sinews of 'war—money — for the Empire. and her Allies. He rightly regards this diversion of such immense volumes of capital from remunerative enterprise with misgiving, inasmuch as the money so diverted is being used f"i' the purpo-c. of destruction and devastation, which, afier the war, wiil iiiid indu-t ry paralysed and the 10-'ses of properly ami lives so vast in j extent that "we turn from the content- ; plat-inn of it all with a detracted brain j and sickening heart." Gratifying refer- j riKv was also made by the chairman j tr.'the work of the British Navy and the assistance rendered by the Australian and Japanese Navies. With re-1 pard to special legislation in New Zea-j land, it is not surprising to find that I

Extension Act as 'Unsatisfactory in its operation, as it was being used .by mortgagors to make money for themselves, instead of fulfilling their obligations. He predicted that the prevailing conditions in the great monetary centres of the world are bound to be reflected, sooner or biter, in our local market, and bo attributes the fact of there not being any shortage of money at present as due to enterprise being stagnant and trade gcneially running .in nni'h restricted channels, and be sounded a note of valuing that money may before long be scarce. As a matter of course, Mr. Beauchamp referred to the gain that the Dominion is reaping from the high prices of wool, meat, butter and cheese. Local bodies will not be too please;' at the prospect of any favorable issue for loans not being likely for some time, as it will be years before the financial equilibrium is restored and normal conditions again prevail, while rates of interest will be higher than in recent years. He considered that the present accumulations of deposits at the banks is duo to. apprehension' with regard to the future, and indicates cnnnncrebil and industrial inactivity, but the conditions of the Dominion's staple industries leave little room for complaint. With regard to the outlook, Mr. Beauchamp considers we may look for a continuance of good trade at remunerative prices, the return:, for which will -insist in discharging the heavy liabilities in connection with the war, and in the distant years there may be seen remarkable progress in arts, sciences, industries and social conditions. As to the bank's own business, the shareholders can be congratulated on its expansion and increased, yield of profits, the amount for distribution by way of dividends for the year being £229,450.