The Temuka Leader SATURDAY, OCTOBER 29, 1887. BANK OF NEW ZEALAND.

Temuka Leader, Issue 1653, 29 October 1887, Page 2

The Temuka Leader SATURDAY, OCTOBER 29, 1887. BANK OF NEW ZEALAND.

“ Coming- events cast their shadows before.” The Bank of New Zealand has ceased to declare dividends. Until this year it has been in the habit of declaring a dividend of 15 per cent, and 5 per cent, bonus on shares, making the rate of interest on their investments payable to shareholders 20 per cent, together with carrying to the reserve fund large sums of money. The £lO shares were worth £25, and in every respect its shareholders were the envy of all. The tide has turned. Gradually the shares fell in value from £25 to £22 10s; then to £2l ; till last April they came down to £ls, where they have remained since. The cause of the fall in the price of the shares in April last was that the Directors found it necessary to withdraw £125,000 from the Eeserve fund, and to pay only a dividend of 10 per cent. And now what will be the result of the newest development ? What will the people think of the Bank that had to withdraw from its Eeserve Bund six months ago to pay a diminished dividend, and now has followed up that step by paying no dividend at all? There is only one conclusion to which all this leads, and that is that the Bank is in very troubled waters, and that nothing but a return of prosperity can save it. Let further depreciation take place in the value of property, let the merest accident only frighten the public, and the Bank of New Zealand must join the many ithaa been the cause of sending into the Bankruptcy Court. We have seen it coming for a long time, we have prophesied that eventually the result would be disastrous, but we did not think our words would be so soon confirmed. The Bank of New Zealand has existed on borrowed public money, and now that borrowing has practically ceased the Bank has began to feel its effect. It has, however, succeeded in getting into power its political hack, who goes by the euphonious name of its book-keeper, and is otherwise known as Major Atkinson, and to back him up it has its own solicitor— Sir Frederick Whitaker, From the latest accounts to hand we learn that Major Atkioson will introduce a proposal to borrow more money during the present session, and perhaps this is not wholly unconnected with the straightened financial position of the Bank of New Zealand. It would suit that Bank very much that we should go in for another loan, it would give it the command of a little fresh capital, and, as its President promises in his speech, it would probably take care of it, and put it to better use than it has heretofore done. The Bank has ruined the cojony and crippled itself, and it is doubtful whether jt will not yet fall into deeper troubles and drag the colony with it.