COMMERCIAL.

Lyttelton Times, Volume XXIII, Issue 1407, 1 June 1865, Page 4

COMMERCIAL.

Lyttelton Times Office, May 31. In a recent issue we noticed a paragraph which appeared in the Wellington Independent, respecting theforrnatiwnof a new Loan Company, and its intimate connection with the Bank of New Zealand, When writing on the subject, we observed that it was very unlikely the Directors of the Hank would pledge their shareholders' capital in support of any such scheme, however desirable it might he considered for the interests of the colony. The arrival of the Northern mail proves that our view was correct, as the following letter is found in the New Zealand Herald, addressed to the Editor by the Inspector of the Bank " Bank of New Zealand, " Auckland, May 17. " Sib,—-In your paper of 15th inst. I observe an extract from a communication froui the London correspondent of the Wellington Independent, published in that paper of the 9th inst., referring to the approaching introduction to the notice of the London monied public of a new company, entitled the ' New Zealand Loan and Mercantile Agency Company (Limited).' I will not here notice certain inaccuracies which appear in that portion of the article

published by you, my purpose J® .MMljf J«£W; be taken in the colony.' It is true, sjilouldthe com nonr alluded to be formed, that the Bank of Pie Zealand closely Identifies itself with the J" the intention of the jjromoters is that it « iIO, J J l bG direct connection with the Bank ; but tiiae is not the slightest foundation for tho statement that fUo Ttnnlr pither takes or guarantees the taking of fc f ?n thP Tho individual members of the Board of Directors have intimated their willingnesstotokeacertain interest in the company, but not the slightest responsibility attaches to the Bank of Now Zealand in the matter. . "lam, Sir, your obedient servant, " D. L. Murdoch, Inspector. The following is the prospectus of the proposed company " The great and increasing demand for capital throughout New Zealand, owing to the rapid increase of population, and consequent development t]; ade « points to that colony as a most inviting field for the establishment of an institution such as is proposed in the New Zealand Loan and Mercantile. Agency " proposed to be embraced by it is wholly apart from, and will in no way interfere with, legitimate banking operations •, and to those acquainted with the colony it is a well known fact that, although the banking capital m New Zealand has, during the past three years, increased tenfold, the demand for advances for such objects as this prospectus points to exceeds the capabilities of the present banking institutions in the colony. "It,is, consequently, proposed to establish this company in direct connection with the Bank of New Zealand, the progress and success of which afford a marked illustration of the safety and remunerative character of monetary operations in the colony. "The connection thus obtained will enable the company at once to attain a position and an amount of business which could not otherwise be secured for years ; and as it intends to avail itself of the officers of that bank, so far as the directors may deem advisable, for the superintendence, of the company's interests, an amount of intelligence and experience will thus be brought to bear upon its operations which will be a safeguard to the shareholders, and will enable the company to carry on its business at a moderate cost. . "The business proposed to be embraced py toe company is to make advances by mortgage on freeholds, on bonds and debentures of governments and public companies, and on the stations and stock of squatters. The special field in view for the lastnamed description of advances is the province of Canterbury, by far the most favoured portion of New Zealand for pastoral pursuits. The present leases of squatters expire in 1880, and it will be the interest of the leaseholders, before these mature, to secure, by purchase, the water frontage and more important portions of their runs. There will be great facility in profitably investing that portion of the company's capital to be apportioned to that province. "In addition to the above business, it is intended that advances be made on the growing clip of wool, secured by registered lien, which is a legal security in the colony ; and that the wool be transmitted to London, for sale by the company.

With a subscribed capital of five hundred thousand,it is proposed to have a paid-up capital of ... £100,000 And that, taking advantage of favourable opportunities of borrowing on the debentures of the company, a further sum be raised of 400,000 Making an amount of working capital of £500,000 "The rate of interest at which investments can be made in New Zealand may safely be assumed to average ten per cent., while the borrowing rate in this market on the debentures of the company would not be expected to exceed six per cent. "At these rates the following may be taken as an approximation to the probable'results :— £500,000, at ten per cent. ... £50,000 Commissions on wool sales, profit on-'exchange 6,000 Procuration fees, &c., say ... 3,000 £59,000 Less cost of management and other incidental expenses ..., ... £10,000 Interest on £400,000, borrowed- on debentures at six per cent 24,000 ; 34,000 Leaving a net profit of £25,000 Or twenty-five per cent, on the paid-up capital of the company. "The directors feel that the above results may fairly be expected. "No promotion-money will be paid, and the directors guarantee that the preliminary expenses shall not exceed three hundred and fifty pounds. " The board of directors of the Bank of New Zealand at Auckland have intimated their willingness to act as a local board of the company ; and, as an assurance of their belief in the success of the undertaking, have, as individuals, agreed to take 5750 shares. " Prospectuses and forms of application for shares may be had at the National Bank, 13, Old Broad street, and the Bank of New Zealand, 50, Old Broad street, City.

The quarterly meeting of the Chamber of Com merce was held yesterday, at their room, in High street. The following gentlemen were present:— Messrs. Richardson, Day, Peacock, Hawkins, flargreaves, Cowlishaw, Ollivier, Mytton, Matson, Stewart, M'Lean, Dalgety, Thiel, Turner, Buckley, Aikman, C. C. Aikman, J. D. Macpherson, Davis, Laurie, Coster, Wilson, Stanley, E. A. Hargreaves, Brownell, Millton, and Palmer. In the absence of Mr; Symington, Mr. Turner occupied the chair. The minutes of the last meeting having been read and confirmed, The Chairman announced that the first business before the meeting was the election of new members. The following gentlemen were elected, on a ballot being taken:—Messrs. Foster, L.L.D., Hennah, and Lockhart. The Chairman announced that it had been anticipated that the report of the committee on the Customs Tariff would have been brought forward. It had been in the hands of the printer for some days, but that the committee had not been able to obtain copies of it. It was the desire of the sub-committee that the matter should be thoroughly ventilated, and with that idea he would not bring it before this meeting. He hoped, however, that it would be brought forward shortly at a special meeting, and that there would be a large attendance of members present when the subject was discussed. It was one of the highest importance, and he might state that the committee had based their report on the highest figures which it had been suggested that the articles would bear.

No other business being brought forward, the Chamber adjourned.