BANK OF NEW ZEALAND.

Waikato Times, Volume XXVI, Issue 2155, 1 May 1886, Page 2

BANK OF NEW ZEALAND.

In our last issue we gave a brief telegraphic report of the half-yearly meeting of the shareholders at Auckland on Wednesday. Below we republi«h from the Herald the remarks of the mover and seconder of the adoption of the balancesheet :— The Chairman, said : Gentlemen,— Before moving the adoption of the report and balance-sheet which have just been read, you will expect me as usual to offer what 'comment is called for by the figures placed before you. Fully recognising the abnormal condition of business in the colonies owing to the continued and unexampled depression in price of all our products* in European markets, our policy has necessarily been of a restrictive character, as under existing circumstances there is no room for speculative business and as a rule he is doing best who is doing least. The general debire, theieforo, among the mercantile classes ha* been to confine transactions within the narrowest limits consistent with the efficient supply of the ordinary requirement-* of their customers, and in this policy the bank has lent its aid. Still, the general turnover has not been unsatisfactory, «nd, as the figures just read will have .shown y<m, the average of profit for the last few ycais h.is been well maintained. We still look hopefully for the long-expected revival in business, through recovery in prices of colonial product*; such revival, we feel assured, cwnot be much longer delayed, and though it may be taking a too sanguine view to expect a full return to prices which ruled some years since, the present anomalous condition of markets, which leaves no profit for almost any product can hardly be lw.rm.inent. Turning to the figures of the balance-shoot, it will be seen that on the debtor or liability aide the only items' winch present any material alteration from the previous st,iti<inent is a slight decrease in deposits, which is more than accounted for in the operations of the Government account. On the other ride the cash equivalent*, included under the headings of coin and bullion money on short call, Government securities and bills receivable, and securities in London, show mine contraction, owing to the more active employment of the bank's resources and some reduction in Government balances. It will no doubt be expected that some allusion should be made to our recent unfortunate experience in Sydney— an experience which came with a* great a shock to the board as I am sure it did to the general body of shareholders. I need hardly say thut the sensational rumours, to which currency was given in our public prints, had but a slender foundation. We will make a loss, but the extent of it cannot be defined until the value of the defaulter's private estate is touted ; but, ns far as we can at present judge, the extent of our loss cannot I exceed ten or fifteen thousand pounds, and may prove to be much less. The bank in I its career has been singularly exempt from *uch cases, and it is much to be deplored thht tht first serious instance should ha\e occurred in one of the most prominent and promising officers of the institution. As, how ever* hifi case is still sub judice, I refrain fioni more tluu these general comments on it. With these remaiks I beg to m»ve the adoption of the report and balance-sheet. Mr J. M. Clark : Mr President and gentlemen, — I rise to second the adoption of the report and balance-sheet, and in doing 80 I will take the opportunity of oongratulating the shareholders upon the result of the last half-year's operations. In the midst of the long-continued and severe depression, results which ennble the usual dividend and bonus to be declared, and enable the balance to the credit of profit and loss account to be carried forward to be £3500 in excess of that brought forward in the report of the previous half-year, cannot be considered anything but satisfactory. The president jn his remarks, in referring to the long-continued depression, and to the prospects of a revival, says, that mich a revival, he hoped, could not be much longer delayed. I think he might have put it • little stronger than that, and have said that this depression cannot possibly exist much longer. In this colony the depression for the most part arises, as has been stated, from the low prices of its main products. These low prices cannot continue much longer, because for the last two years those prices have left a loss to the producers. Now we may expect arise in price from one of two things ; either, j from an increased consumption or a diminution in the production. Although in some little points we might expect an increase in the consumption, such as in frozen mutton, if the arrangements were made complete regarding selling it to the consumer at a price something like what the producer receives in the wholesale market, with a profit added, if these negotiations for the alteration of the American tariff in the matter of wool come to anything possibly there may be slight increased in the consumption ; but I look for an increase in the price more from the production being lessened. All those who are in the worst condition for producing must abandon the business. Then how will New Zealand fare in this respect in the question of the survival of the fittest ? She is handicapi>ed considerably by the heavy rate of wages, but even iathat respect the money does not go out of the country. She is handicapped also on account of the distance from market ; but other countries aro equally or more handicapped in that respect, for in addition to a long water carriage they have a long land carriage, which is even morn expensive than water carriage. But to make up (or the points in which she j«

handle ipi>cd wo havo the noil and climate of New Z»il.intl, wo htwn t\v fr»>edoinjroro dmug'its we li.no tlie very l.irue v«elu pet acn-. I It'll 'M> »h it "ii >c"i vit < if the noil And cliiinto of Now Z-tl.iml die will not m.ly li 'Id lnT |M>-.iti'in •>-> pi» lucor, but it d'Htnu'd t> en finwird n< .vti agricultural cuintry, mid I Itfiww ti >t w lion the rii»« in priw« Ukc« pl.»c<' *h it Xow Zmltnd and the New Z".xhi»d KniACM will b« in « jMisitimi to benofit rii<l pr-tfit by «uch riw. I s.iy ap.un, tlut if yo.ir dircoturn hR»» never n worso bulinoe "lio-'t to place bctor* yon than tho one at this tune, yon will agom and again have re.wm t<> be congratulated. I Log to second tho motion for th« ndnption of the rctxtrt and balanti- sheet.