BANK OF NEW ZEALAND.

Ashburton Guardian, Volume XXIX, Issue 7825, 18 June 1909, Page 3

BANK OF NEW ZEALAND.

ANNUAL MEETING

Per Press Association

WELLINGTON, June 18. At the annual meeting of the Bank of New Zealand to-day, the chairman (Mr Beauchamp) moved the adoption of the report and balance-sheet. In doing so he said that the question of increasing the bank's capital had been engaging the attention of the Board, but so far no definite scheme had been formulated. He dealt with the figures already published, and gave a statement of the position of the Assets Realisation Board. This showed the balances owing by purchasers to be £336,931. During the year unrealised assets were reduced from £93,195 to £66,778, and since March 31st further sales effected amounted to £10,467. The chairman considered this decrease highly satisfactory. In dealing with the state of trade generally, he said it was most disconcerting to admit that a sudden drop m the value of primary produce for one season only should cause such financial disturbance as that lately experienced. The inordinate prices given for land was another cause of depression, and cheap land was more necessary than cheap money. Had 'land values been maintained at a nominal reasonable level, they should not now be troubled with monetary tightness or distress arising from unemployment. Land should be bought and sold on the basis of its productive value m normal times. Industry m the North Island could, be greatly stimulated by the settlement of native lancTs. He did not anticipate that the present depression would be so acute or long as previous ones; and financial stringency not so pronounced as at the present moment. The world's trade for the past year had been unsatisfactory; this had been due to lower prices, and to a shrinkage m consumption. The exports from the dominion showed a decrease of two and a-half millions; but the market had showed improvement, and the outlook m that connection was still exceptionally good. Exports of butter and cheese showed increases during the past season; but he anticipated a. serious drop m the values oi dairying land, due to the excessive prices given and to the competition of other countries. The state of the frozen meat trade was most discouraging. The industrial depression m Britain was partly responsible for the shrinkage m values; and as the Argentine was becoming a •t ro»c , competitor, special efforts should be made to induce foreign Governments to relax the conditions prem£& 8 t T Z, ealand findin S fresh markets for her frozen meat. Hemp and kauri gum showed no improvement m price,, but the wheat market was hopeful. New Zealand i has a surplus of two million bushels and with the London quotations at 43s to 44s per quarter, wheat-growers should make money But the new i ciops of America and Britain' would 1 cause a readjustment of values, and I therefore it was not advisable that farpSeft^ gambl6ollthe market ' Mr Martin Kennedy, who seconded the motion, said the result of the year's operations as disclosed m the balancesheet could be accepted as highly satis-i factory. Referring to the femus, he said it was less than many of the proprietors had been expecting, especially those who suffered heavily m the banks failure; but he asked them to I look to the act of the dictorate rather than to the amount of the bonus. It was an indication that, as soon as circumstances would admit, the 2% per cent, bdnus would be increased to 5 per cent, m future years. He did not favour any proposal to increase the capital, especially as they were building up the reserve so rapidly. A necessity for additional capital was not likely to arise before 1914, when the guaranteed million .falls due. To issue new shares legislation would be required, and one could never be sure of what pould happen to a Bill m the House of Parliament. Mr John Mill (Port Chalmers) expressed the hope that a 5 per cent, bonus would be paid next year.' N In reply, Mr Beauchamp said the directors had been actuated m making the reserve by a desire to place the affairs of the bank on a sound foundation. He did not wish it to be taken that the bonus of 2£ per cent, this year was an indication that there would be another 2£ per cent, on top of that next year. Before increased capital would be asked for, an assurance would ba sought from the Premier that the Bill would not be subjected to alteration. It would be the Bill, the %vhole Bill, and nothing but the Bill. Owing to the cautious policy the bank was pursuing, the shareholders must not be disappointed next year if such good results were not shown as Avas the case ror the two last years. The meeting closed with votes of thanks to the directors and the staff.