The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun. FRIDAY, JUNE 10, 1935. BANK OF NEW ZEALAND.

Auckland Star, Volume LXIX, Issue 135, 10 June 1938, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun.

FRIDAY, JUNE 10, 1935. BANK OF NEW ZEALAND.

For the cause that tacks assistance, For the wrong that needs resistance, For the future t» the distance, And the good that toe cmn do.

The address to the annual meeting of proprietors of the Bank of New Zealand, to-day was delivered by Mr. William Watson, who has spent nearly 43 years in its service, first as ipresident and, since January 1, 1899, as a director. Mr. Watson is in his ninety-second j. year, and surely can have no rival to the distinction of being the oldest banker in the world. He was signing the directors' book v'len some of his present co-directors were children, yet his repeated re-election as shareholders' representative throughout such a long period is proof that his ability did not diminish with advancing years, and it is likely jthat, but for his voluntary retirement, announced to-day, he would have been re-elected again. Such a record can have but few parallels in any part of the world, and the bank with which he has been associated from its infancy—since before it was constituted as • at present —has been extremely fortunate in • having received the benefit of his experience i and ripe judgment for so long. The bank on March 31 last completed its i second year since the advent of the present • Government. The previous Government had ' transferred the main Government accounts to • the Reserve Bank, and its successors made a further major change by taking over the export bills in connection with the Dominion's dairy exports. Nevertheless the part which the institution has always played in financing farming and associated activities has not, in the last year, become smaller, but larger. An analysis given in the chairman's annual statement shows that slightly over half of the bank's total advances has been made to farming, industries allied to farming and stock and station agents, and that advances to these three groups increased during the year by over two millions and a quarter. In addition, it appears that the mortgage relief legislation passed by successive Governments has had the unforeseen effect of making more business for the banks, whieh "have been called upon to provide a considerable amount of finance which previously had been obtained from private lenders." It is surely an ironical circumstance that the services of the institutions which, mainly for political reasons, were made the chief scapegoats of the depression, should now be increasingly in demand, because the availability of mortgage money elsewhere has been adversely affected. It is precisely because these institutions are strong and wealthy—the main point of attack en them —and because they enjoy the confidence of the business community, that they are able safely to meet the needs of mortgagors. _

The most interesting statement in the chairman's review is that, .in addition to carrying on its customary activities, the bank may extend them to "other fields of production." The directors discuss this change "as a possible contingency," but are not in a position to make decisions "until Government policy affecting the development of industry has been more fully stated." This guarded statement appears to express the directors' doubt concerning the nature and degree of Government control of industry in the future. Until recently a. man proposing to begin a manufacturing business, and requiring financial help, had to satisfy a bank of his "creditworthiness," of his own character, and of the reasonably good pi'ospeets of his project. Now he may have to secure the permission of the Bureau of Industries before he can begin. Under a Socialist Government such control, jin the interests of a "planned economy," will increase, and possibly increase rapidly. Will the development of secondary industries be as rapid and as sound, under such control, as under free conditions? Will the essential capital from private sources be as readily available under the new conditions as un-vV the old? Such questions, which seem to be implicit in the chairman's cautious statement, raise the broad and fundamental issue of private enterprise versus Socialism.