The Bank of New Zealand.

New Zealand Tablet, Volume XXX, Issue 32, 7 August 1902, Page 18

The Bank of New Zealand.

The declaration of a dividend of 5 per cent, by the Bank of New Zealand may be accepted as proof of the soundness of the arrangement under which the Colony Btepped in to the aid of the bank some years ago. Severe critics may demur to the payment of a dividend while there still exists a liability in the shape of uncalled capital, but the directors are quite willing to accept the responsibility of deoiding that the position is such as to warrant the course. Au analysis of the figures in the balance sheet justifies the action, and it has to be borne in mind that the shareholders were deserving of some consideration. A great many people have considered that the shareholders have not received the consideration they deserved, because there can be no doubt that the fall in the value at the shares ruined some whose livelihood depended on the dividend. An indication was given ac the annual meeting on Friday last that Parliament will be asked to renew in some form the arrangement that exists between the Government and the Bank whereby the State guarantees the deficiency that will have to be provided for between the amount secured by the Assets Realisation Board's debentures and the amount which the realisation of the board's properties will produce. These debentures mature in 1904, and the unpaid capital of the bank is held in reserve for their redemption but Mr William Watson, the former president of the Bank and now one of its directors, estimated at the annual meeting that in seven years' time, if the existing arrangement with the Government is continued, the institution will be able out of it Burplus profits to provide for the deficiency that will accrue, and that then the Bank will be practically free,