The Daily News. SATURDAY, JUNE 23,1917. THE BANK OF NEW ZEALAND.

Taranaki Daily News, 23 June 1917, Page 4

The Daily News. SATURDAY, JUNE 23,1917. THE BANK OF NEW ZEALAND.

The annual report of the Bank of New Zealand is always perused with interest ] by the general public, who regard the institution as being more a national than a private concern by reason of the fact that they saved it from extinction and set it on tho road to a prosperity that has proved to be phenomenal. The question that frequently agitates the minds of the thinking portiopi of the community is whether the -directors of the bank recognise that tjhe salvation of their institution imposes at least a moral claim that the policy of the bank should be so framed thsat in return for the new lease of life it. received at the hands of the country there should be a corresponding effort on the directors' part to do all in their power, without jeopardising the capital of the bank, to foster business and the development of the resources of the dominion. This aspect of duty they have, unfortunately, not hitherto taken to heS'.rt. They accepted the life-saving line, got to shore, and have gone on their own way to heap up profits without giving » thought to easing the strain on the community by the means at the bank's disposal. The Bank of New Zealand' 9 net profits for the year, after paying interest on guaranteed stock, making all necessary appropriations, including tie annual grant to tho provident fundi and a special grant of £25.000,. as well as a bonus to the staff and the allocation of £50.000 in reduction of bank premises and furniture, amount to #365,489, or £79,689 more than for the previous year. The shareholders will recent £-337,500 for the year, £72,858 is carried to reserve fund, and £111,595 ct^riea^for-

ward. A mere glance at these figures should suffice to prove the contention advanced above that the bank has certainly not done what it should to help the country, and yet the report makes special reference to the ract ffiafc the cost of living is steadily rising and is pressing with unusual severity upon those with limited incomes. Do the directors suggest that they should assist to overcome this burden by reducing bank charges and rates of accommodation? Not by any means. They blame the public for not modifying the "standard" of living to meet the altered conditions—a convenient and agreeable suggestion which places ' the onus on "the other fellow" and relieves the banks of any moral duty to do their part in easing the stress. This is emphasised by the remarks in "the report upon the problem of national economy, the need of which again finds a place in the report. In one sentence, therefore, is proclaimed the. undue pressure owing to the high cost of living, while in another it is stated that extravagance is rife and lavish expenditure is made on dress and pleasure, all of whieh is set down as very regrettable, "the majority of our people being prone to close thftir eyes to the grim and portentous happenings on the other side of the world." This diatribe on economy possibly may be applicable to. the shareholders of the bank, but to the general public it is merely a satire. We, have only to look at the amounts on deposit at the Savings Bank and lying idle in the coffers of the Bank of New Zealand and similar institutions to he convinced that the capital and income of the citizens of the 'Dominion is not being depleted by inordinate and regrettable extravagance. A tabulated statement of deposits for the March quarters of tho last foul" years appears in the report, and special attention is drawn thereto. The Sicreases have been exceptionally large, having grown from £2-t,030,i ; >0 in WW to £34,356,540 in 1917, the latter being the largest volume of deposits ever held by New Zealand bankß. The Post Office Savings Bank

figures also show an expansion. These figures tell their own tale, tho preponderating fact heing the prosperity of the Dominion, which is also emphasised by the abnormal excess of imports over exports—over twenty-one millions. It is this feature which most directly concerns the producers, while the comparatively small increase in imports negatives the charge of abnormal extravagance. The people of tlie Dominion are spending more freely, but the calls for patriotic liberality have loosened the purse strings and it is to the credit of.the country that the response should have been and still is so spontaneous and generous.