COLONIAL BANK.

Press, Volume L, Issue 8599, 28 September 1893, Page 5

COLONIAL BANK.

HALF-YEARLY MEETING. (PRESS ASSOCIATION TELEGRAM.) DUNEDIN, September 27. The thirty-eighth half-yearly meeting of the Colonial Bank was held to-day, Hon. George McLean presiding. In moving the adoption of the report, the Chairman said : —" The unusual features are the shrinkages mostly consequent upon the repayment of £400,000 Government loan, expansion of exchange business (owing to Government purchases of drafts), and the separation of " remittances in transitu and not due " from other advances. Tbe latter change makes the balance-sheet more complete. It is with no ordinary degree of satisfaction that the Directors are able to produce such a favourable report, and to recommend the payment of the usual 7 per cent, dividend, besides placing £5000 to teeerve fund and carrying forward £6434. This satisfactory state of affairs is matter for more than usual congratulation at a time when success stands as it were in relief against the recent panic in Australia, a panic which is unparalleled in history. Happily thatpanic, with the exception of a short and absurd run on the Auckland Savings Bank, did not extend to New Zealand. The temporary e;are caused by the Auckland run was, however, sufficient to make the Government feel the necessity of enacting legislation to uieet cases of panic, and the necessary 8.1 l was passed to enable the Government, under certain conditions, to declare notes a legal tender, and to afford help if necessary in cases of emergency; let us nope that there will be no need to call the Act into operation. The Government have aleo had under consideration the question of Government audit of Banks in the colony, and as such would give more confidence to the public and prevent senseless panics, this Bank would hail such legislation with great satisfaction. Indeed, I mytelf bad ux contemplation the iatrodnc-

tion of such a measure, and procured cvruiu Acta and papers from America which, on learning of the Government's intention, 1 handed to the Colonial Treasurer, offering him at the same time all the information I had acquired regarding the working of the law on the subject in force in America. Revertiug to the late financial crisis which swept over Australia, you will naturally expect some statement as to how it affected ns. lam happy to be able to tell you that through the arrangements we had with our various agents in other colonies no inconvenience bas been experienced by any of our customers, whose business with Australia was/6ouducted without hitch ; while, so far as we ourselves are concerned, the total amount we have locked up owing to the crisis is a sum under £30 owing to us in balance of account by one of the suspended Banks. With regard to the susp9nsiou of the Loan and Mercantile Agency Company we, as a Bank, are in no way interested. We, however, deplore the trouble that- has befallen them, ami hope soon to see the institution in active business again. From a return laid before Parliament, we find that we are very harshly treated in having to pay 40 per cent, of the whole income tax collected from six Banks doing business in the colony. This certainly shows that a radical change in the law is necessary, for, surely, if any advantage is to be given, it should be on the side of an institution that is purely a New Zealand one. With regard to our shares, though they have suffered the least depreciation of those of any colonial Banks, still they are low; there is, however, no real reason for this, as our business is a good and liquid one, and the shares are now intrinsically worth more than they previously were. With regard to the state of the colony, it is, upon the whole, prosperous. The rabbit past and the preferential demand for long wool have doubtless adversely affected some interests, but the vast majority of settlers have greatly benefited by the continued high prices of shsep and cattle. When we compare prices with those obtainable only a few years ago, before the meat freezing superseded the boiling down of carcases for tallow, it is manifest that great praise and thanks are due to thuse who promoted and carried to its present state of success the great industry of freezing, exporting and selling mutton and beef, these being products which New Zealand is so well qualified to produce. Mr C. Haynes, Mayor, seconded the motion, which was carried unanimously. Mr Win. Barron moved a vote of thanks to the Directors and staff in a complimentary speech, which, Mr J. Wright having seconded, was carried unanimously. The Chairman returned thanks, and the meeting closed.