BANK OF NEW ZEALAND.

Auckland Star, Volume VI, Issue 1624, 29 April 1875, Page 2

BANK OF NEW ZEALAND.

HALF-YEAKLY MEETING,

The half-yearly meeting of the shareholders in the Bank of New Zealand was held in the Banking-room today at noon. The Hon. James Williamson occupied the chair. D. L. Murdoch, Esq., Inspector, read the report as follows :■— * . The directors are enabled again to meet shareholders with a report and balancesheet which cannot fail to be satisfactory. Tbe net profit at 31st of March, after making very full advance for all bad and doubtful dependencies, and towards reduction of Bank premises and furniture accounts, amounts to £48,058 4s. lOd. ; to which has to be added the'balance of undivided profit at 30th of September, 1874, £13,910 6s. 3d., making a total available for division of £61,974 lls Id. The following appropriation of which is now recommended : To payment of dividend at the rate of 10 per cent per annum, £30,000; to bonus of ss. per share, equal to 5 per cent per annum, £15,000; to balance carried to profit and loss new account, £16,9/4 lls Id. The dividend and bonus will be payable at the head office, Auckland, to-morrow (Friday), tbe 30th of April, and at the branches on receipt of advice.

Aggregate Balance Sheet of the Bank of New Zealand, at 31st March, 1875, including London Office to 31st December, 1874.

Dr. £ s- dBank Stock 600,000 0 0 Reserve Fund 180,000 0 0 Notes in Circulation 468,420 0 0 Bills Payable in Circulation 1,450,368 0 6 Deposits and other Liabilities 3,884,117 15 3 Balance of Profit and Loss, at 30th September, 1874 13,916 6 3 Nett Profit for Half-year... 48,058 410 £6,644,880 6 10 Cr. £ s- dCoin and Cash Balances ... 507,403 011 Bullion on hand and in transitu 256,064 12 10 Government Securities ~. 300,000 0 0 Landed Property, Bank Premises, and Furniture 102,620 1 3 Bills Receivable and Securities in London 1,477,029 8 6 Bills Discounted and other Debts due to the Bank... 4,001,163 3 4 £6,644,880 6 10 PROFIT AND LOSS ACCOUNT. Dr. £ s. d. To Dividend at the rate of 10 per cent, per annum 30,000 0 0 To Bonus of 5s per share, eoual to 5 per cent 15,000 0 0 To Bilauce carried to Profit and Loss, new account ... 16,974 11 1 £61,974 11 1 Cr. £ s. d. By Balance of Profit and Lobs, at 30th September, 1874 ... 13,916 6 3 By Net Profit for Half-year, , after writing off bad debts 48.05S 4 10 £61,974 11 1 RESERVE FUND. £ 8. d. To Balance 180,000 0 0 £180,000 0 0 £ s. d. By Balance from last statement 180,000 0 0

£180,000 0 0 a n j (P. DIGUAN, Audlted j Chas. J. Taylor. . Mr Murdoc 3aid th. at, by permission of the directors he wished to call attention to a slight alteration in the form of making up the aggregate balance-sheet. Hitherto bank property (the land on which the banks stood) had been charged separate from the furniture. There was no reason for this and they were now charged together. Bills receivable bills and securities in London and bills discounted and other debts due to the bank had Also been placed together, but for various reasons, partly in consequence of strictures of the press, they were in the present balance-sheet shewn separately, so that it would be seen there were bills receivable and other securities in London to the amount of £1,477,029 against the bills discounted and other debts due to the Bank.

The Chairman said : In moving the adoption of the report and balance-sheet which have just been read it devolves on me to make a few remarks on matters connected with the business of the past half-year. I need not comment on the report, which I am sure will commend itself to shareholders generally, and will only notice that one gratifying feature in it is that, notwithstanding the initiation of a policy by other Banks on which I will remark hereafter, which is calculated to interfere materially with the banking profits, we are enabled to meet you with the same dividend and bonus, and to add something to the balance to be carried forward to the next half-year. In view of the possibility of the continuation of the competition now existing, the directors consider it prudent to keep a good balance in hand, which may possibly be needed in the future to equalise dividends. The policy to which I have referred, and with which most of you are no doubt more or less acquainted, was the offer by the National Bank of New Zealand of rates for deposits much in excess of those previously current, which were of course adopted by the other Banks, and subsequently were increased by the Bank of Australasia. Previously to this step being taken the Banks acted in concert as to rates, but, on the pretext of forcing us to join in a general agreement in Australia, the Bank lhave last mentioned withdrew from and consequently upset, the agreement in the colony. On first sight it may appear as if their position was not unreasonable, bub when I tell you that our business in Australia consists almost wholly of our own agency business and dealing in exchange, it will at once be apparent to you that to join in the same agreement as the other banks have for general business would practically be consenting to close our Australian branches. As there appeared no prospect of a return to an agreement here, there was nothing for it but to carry the war into our adversary's stronghold, but, before doing so, a renewed attempt was made to bring about an understanding, but without Bucces. We, therefore, offered in Melbourne the same rates as were being publicly offered here by other 'banks, and though this action has been severely and very unjustly commented on by some portion of the Australian Press, you may take our assurance that it is not working or likely .to work to the disadvantage of this bank. I. need scarcely tell you that the offer of the present extreme rates for money is altogether foreign to the policy we would

desire to adopt, and I am sure subversive o! , £ the beßt interests of the colony ; for though \\ it gives depositors a present advantage, it f/\ withdraws money from the ordinary channels %■ M of business, andinevitablyleadstocorrespond. \ % ingly high rates for advances. This has not *r I yet been much felt, the competition between Pf| the banks keeping down lending rates, but * the time will come when the banks will try to make up for the present low scale of profits, ffi and I hope the commercial community will then remember that the pinch has not been caused by this bank. The figures in the ; balance-sheet require little comment from ' me, they prove satisfactorily that the businesa of the bank is well maintained, and ► ■ before sitting down I will only add that ia consequence of the maintenance, of high prices for wool and a most abundant harvest, the trade of the colony is in a most buoyant condition, and the late successful negotiation of a further loan by the Colonial Treasurer gives assurance that his scheme of public ; j works will continue to be vigorously prosecuted. I have pleasure in moving thatthe ;:';i ,'> report and balance-sheet as read be adopted. Dr Campbell seconded the report, which was carried unanimously. Mr F. L. Prime said he had seen it skated in articles in the Australian press referring to the establishment of a branch of the Bank of New Zealand there ; that it was done with a desire to attract Australian capital to New Zealand. He wished to inquire regarding regarding the truth of that assertion. Mr Murdoch replied that no such object was contemplated by the directors in taking the step. It was simply done to bring the banks there to a better understanding, and shew them that the Bank of New Zealand was able to offer as good terms there as they , ; were here. He thought that the accusation might well be retorted on th§ Australian % banks; for one agent who had been largely instrumental in causing the increased rate, had admitted that be had received instructions from the head office to withdraw £200,000 from the colony, and that he could only do this either by squeezing his customers or offering ~ liberal terms to secure deposits. If the local banks bad allowed him to withdraw from ; their deposits this £200,000 they wouldhave been crippled in carrying on their ordinary business. He might say that this was only one of manycasesarisingin the colonies caused by foreign banks expanding and contracting their business. Other charges than that mentioned by Mr Prime had been made VT* agairsb the Bank, one being that they were squeezing their customers. H© > v. thought that the proprietors and those who did business with the Bank were : 'I in a better position to judge of that • than newspaper scribblers, and he merely mentioned it in order that proprietors, when they see these statements, made may treat .••.'.; them with contempt as a device of the enemy. (Cheers.) ; , r Mr- Cherry desired to make another ia- ; quiry. At the last meeting it waß understood that the bank would not go into business in the colonies. He wished to know on what footing the agencies recently established stood.

The Chairman replied that the Australian agencies were not opened for general banking business, but merely to enable the bank to transact its necessary business in the colonies on the best terms.

Mr Cherry gave some of his experience of the injurious influence exercised by foreign banks in the colonies from causes similar to that mentioned by the Inspector in connection with the withdrawal of capital from New Zealand by an Australian Bank, (which stood in the position of a foreign bank here.) The establishment of local banks there had been the means of modifying those periods of depression which arise from time to time. The value of local banking institutions was so fully recognised there, that they had. secured almost the whole business.

The Chairmau coincided with the remarks of the last speaker, and said that a similar influence had been exercised by the Bank of New Zealand in this colony, espe cially in the early days. He had heard it remarked, and had of course seen the influence in his own experience—that the service done by the Bank of New Zealand would not be forgotten. On the motion of Mr Comisky, seconded by Captain Casey, a vote of thanks was returned to the directors and officers of the Bank. . .

The Chairman in acknowledging the resolution, said that the object of the directora had always been to promote the interests o£ the proprietors and make the Bank of New Zealand a permanent institution possessing the confidence of the mercantile public in all parts of the world. He had to congratulate them upon the accession to their London Board of Directora of Sir James Fergusson, whose acceptance of the office, and knowledge of the colony, would, he thought, add to the standing of the institution in the home country. Mr Murdoch replied on behalf of the bank officials, and the reading of the minutes brought the business to a close,.