NATIONAL BANK

Waikato Times, Volume 121, Issue 20280, 24 August 1937, Page 3

NATIONAL BANK

ANNUAL MEETING.

SIR AUSTIN HARRIS’S ADDRESS. INTERESTING REVIEW. (Special to Times.) LONDON, July 1. The sixty-fifth annual meeting o: the National Bank of New Zealand Ltd., was held yesterday, Sir Austin E ! Harris K.8.E., chairman of directors presiding. In his annual review the chairman said that for the first time since the establishment of the ‘bank the item “note circulation” did not appear in the balance sheet, the note Issue havI Ing been taken over by the Reserve Bank. Balance Sheet Figures. j Deposit and current accounts at £13,752,000 were £96,000 more than in the previous year, while bills payable and other liabilities were £71,000 less. Bills receivable in London and in transit showed a fall of £835,000, which was very largely due to the fact that under the Primary Products Marketing Act the Government now controlled the export and marketing of butter and cheese with a corresponding loss to the ‘Bank of the British bills. On the other hand, remittances in transit showed an increase of £135,000, bills discounted an increase of £114,000, and advances an Increase of £616,000. Total deposits at £66,287,000 had increased by £687,000, but this figure did not indicate the change that had occurred during the year In the character of deposits, for interest-bearing deposits, which were now 51 per cent, of the total, had fallen £4,604,000, while non-interest bearing had increased by £5,291,000. This was a sure sign of Increasing prosperity. Advances at £46,941,000 had Increased by £1,835,000, and from figures showed that the Bank had had Us full share of this Increase. Profit and Loss. The profit and loss aooount, profit showed a very slight Improvement of £244. “There Is no need for me to tell you that the year has again been one of change and difficulty for the banks,” the chairman continued. “Some of the changes and difficulties have weighed heavily with us, a sterling bank whose business is confined solely to New Zealand, and the board therefore consider that -the result of the year’s working is satisfactory. Moreover they feel that, provided there is no further encroachment by Government measures on banking business, we should be able to participate in the returning prosperity of the Dominion. “You will see that we have allocated £IO,OOO to premises, and made the usual payment of £14,000 to the pension and gratuity funds. We have already paid you an interim dividend at the rate of 4 pel' cent, per annum, and propose to make a final distribution at the same rate, leaving £112,797 to be carried forward, as against £113,959 last year.”

Anglo-Argentine Trade Agreement. Referring to general matters Sir Austin said that the Anglo-Argentine trade agreement signed in December last would be of considerable benefit to the Dominion beef and veal trade. This agreement not only imposed a duty of $d a lb on chilled beef and 2-3 d on frozen beef from the Argentine, but also provided for the restriction of foreign Imports for the next three years, on the basis of the 1935 figures reduced by a total of 5 per cent, over that period. The Dominions were now allowed to ship increasing quantities of chilled beef, and their Imports remained free of any duty. It would toe seen that the arrangement encouraged the import of chilled beef from New Zealand, and it was Interesting to note that shipments for the six months to March last were nearly four times as heavy as in 1935, when the export of chilled, as opposed to frozen, meat first advanced beyond the experimental stage. Legislation. “Last year I told you of the somewhat sweeping legislative measures introduced toy the Government during Its first year of office, making changes which widely affected both the economic and sooial life -of the Dominion, but I also said that it was early to criticise these measures. During the year under review these measures—chief among them the Primary Products Marketing Act—'have come into effect. In addition, the Government have passed the Mortgagors and Lessees Rehabilitation Act, which aims at the reduction of moneys secured by mortgage to the value of the security. Under this Act a mortgagor, lessee, or guarantor may appeal to a Court of Review for the adjustment of his liabilities. A large number of applications have been filed.

liuiio jimve L'ceu men. “In August next t/he Prime Minister intends to introduce a National Health and Superannuation Insurance Bill, and it is also understood that another measure to be introduced will deal with the revision of the basis of taxation. This latter is a matter of great importance and Interest to us, and in our opinion is overdue. On numerous oocasions we have drawn attention to the Inequity of the arbitrary method by which the banks are assessed for inoome tax. Their profits are calculated on a basis which bears j no relation to their earning capacity; | and you will realise that In these days, j when, through the operation of the Marketing Act the banks have lost a large part of their exchange business, : in addition to suffering a fall In In- : terest rates and increased cost of labour—both enforced by legislation— < their earning capacity must be impaired. The banks have of course , represented their case to the committee which the Prime Minister ap- : pointed to examine the whole question - of taxation, and we are hopeful that : we may be afforded some alleviation when the Bill comes before the i House.” ] Mr Nash’s Visit. « “As you know, Mr Nash has been J making a prolonged visit to'thi9 coiun- - try, and was recently joined by Mr ' Savage for the Coronation and the Im- 1 perial Conference. They have both { been very earnest in bringing forward I the claims of New Zealand, and while 1 nothing has transpired as to results 1 of their labours here, I am sure there * Us no one who does not hope that they 1 are going back not empty handed or f entirely dissatisfied with what they *

have gained. They have received the good will of everybody with whom they have come in touch, and 'have Impressed all with their genuine desire to Improve the lot of the Dominion.” The Executive. Sir James Grose’s period of service as general manager came to an end In April, and he had now retired from that position. During the nine years he had been with the Bank he hat rendered great service, more especially, perhaps, during the last few years when political difficulties loomed largely they found him a most helpful advocate in dealing with such matters. The board had appointed him an advisory director in New Zealand. Mr P. R. M. Hanna, who has occupied senior positions in the bank for many years had succeeded, Sir James Grose as general manager, while Mr Littlejohn, •lately manager at Christchurch branch, had been appointed assistant general manager. Thu chairman t'.en moved: “That the report and accounts he adopted and entered on the minutes: that a dividend at the rate of 4 per cent, per annum for the six months ended March 31 last be now declared, frue of income-tax: and that the balance of profit and loss account amounting to £112,796 19s 5d be carried forward.” The Rt. lion. Viscount llampuen, G.C.V.0., K.C.8., C.M.G., seconded the resolution, and it was carried unanimously.

The Rt. Hon. Lord Balfour of Burleigh, proposed the re-election of the retiring directors (Sir Austin E. Harris. and Mr Arthur Willis) and the motion was unanimously approved.