BANK OF NEW ZEALAND.

Wairarapa Age, Volume XXX, Issue 8998, 7 December 1907, Page 7

BANK OF NEW ZEALAND.

+ HALF-YEARLY MEETING. CHAIRMAN'S ADDRESS. INTERESTING FINANCIAL REVIEW. l:V TEMiiKAI'II I'UKSK ASSOCIATION'. WELLINGTON, December 6. At the half-yearly meeting of the Bank of New Zealand, the chairman referred to the recent fall in wool, hemp, mutton, tallow and pelts, but did not consider the values obtaining left much cause for complaint. The fall was probably in sympathy with the disturbed state of the money market, and the rates would improve with it. Referring to the financial crisis he predicted that if the 7 per cent. Bank of England rate was maintained for long n.onsy mu3t harden in New Zealand also. The crisis in America was attributed to the New York bankers trading on a narrow margin of gold, and the encouragement of vast credit. He issued a note of warning in connection with the system in New Zealand, several large trading concerns competing for deposits and allowing interest on current bank balances. He had recently examined the published balance sheets of seven companies, and found their indebtedness in this respect wa3 £535,516. If by statute the banks are compelled to keep securities to the value of 6s 8d in the £ of their liabilities payable on demand it was only right a similar obligation should be cast on these companies. It was gratifying to say that the business and profits of the bank were so far well maintained and the prospects encouraging. Mr Mar tin Kennedy, who had just returned from Home", had made himself thoroughly acquainted with their business in London, and they would be pleased tc hear that they had passed practically unscathed through the recent trying times. During the year realisations of properties taken over from the Assets Board were effected to the extent of £332,646. The total left now stood at £585,565. The board proposed to pay an interim dividend of 5 per cent, on both classes of shares. Mr Martin Kennedy, being unopposed, was declared re-elected to the board of directors. Mr Martin Kennedy quoted particulars of the capital and reserves of other banking institutions doing business in the dominion, with a view to showing that if £159,000 was added to the reserve the time had arrived for an increase of the dividend. In reply to this the chairman of directors quoted the capital and reserves of other banking institutions, as a set-off to Mr Kennedy. He declared it was inadvisable to attempt to increase the dividend until such time as the reserve of the Bank of New Zealand fairly approached those of other institutions v/ith which it competed. Mr Kennedy said while the reserves of other institutions exceeded those of the Bank of New Zealand it had to be remembered that their business consisted of operations which largely extended throughout Australia, where there was always a possibility of big losses through drought. It was in Australia that the Bank of New Zealand had loot largely in the past, and while it still carried on business there it now dealt in the gilt-edged class of business. The meeting passed a vote of thanks to the staff.