The Evening Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, and Echo. FRIDAY, FEBRUARY 28, 1896.

Auckland Star, Volume XXVII, Issue 49, 28 February 1896, Page 4

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

FRIDAY, FEBRUARY 28, 1896.

Fer the oause that laslu assistance Fw K«o wmig that assets r.esistancß, Far the fciiur* in tia distanco. Axd tks E«d tiat ws can ae.

The half-yearly report of the Bank of New Zealand, which was presented by the Chairman at the meeting in Wellington yesterday, represents a state of things which is very satisfactory when the circumstances of the Bank's posi" tion are taken into account. Shareholders will be glad to see that the new policy now being followed in the administration of the affairs of the institution, is having good results. -The Bank is gradually strengthening its position by ridding itseli of connections which were a source of weakness to il and by acquiring new and sound busi ness. The day is past ior us to deplore the woe/ul mismanagement and want of judgment which brought the institution into the deplorable state from which it was rescued by the country. Such a retrospect is only useful as a prevemative against a similar catastrophe, and we are certain that the Bank authorities have Jearned the lessons taught by past disasters too well to require to be reminded of them. Even if the Bank had the same freedom of action now that it had in the past —which of course it has not, being guarded by legislative restrictions — there would be little danger of it falling into the same mistakes, This being the case, it is more profitable to turn from the gloomy past to the future, which already is bright with promise oi better things. It will be seen lhat for the six months ending the 30th September the Bank was able to show a profit, although in the period referred to the institution had, as the Chairman said, haidly begun to reap the benefit of the changes and improvements effected. There is gratification in the statement that the Bank has lost almost nothing of the business of the Colonial Bank since it took over the latter. It will be remembered that it was freely prophesied that there would be a serious contraction in the Colonia! Bank's business as soon as it was merged in that of the Bank of New Zealand. These forebodings have not been realised, according to the Chairman, and although the Colonial Bank was not the wonderful property it was given out to be, still we have his assurance that the advantages which it was anricipated would accrue to the Bank of New Zealand by the 'transaction are likely to be realised.

Among the millstones which hang round the Bank's neck and dragged the institution down into the ocean of financial embarrassment,, unprofitable trading concerns and land speculations were the chief. It is now clenrly recognised that in dealing in such affairs as it did, the Bank went beyond the limits of legitimate banking. The trading concerns are now being disposed of whenever a favotrrableopportunity offers. The few which remain in possession of the Bank will also be sold as soon as possible, and in the meantime it is a good sign that they have done well daring the past half year. With regard to the Bank's land speculations, arrangements are now almost completed for the windingup of the Bank of New Zealand Estates Company and tbe Auckland Agricultural Company, institutions which have been a great drag on the Bank. Rid of these various encumbrances, there is every reason why the Bank should enter on a new lease of life. To every appearance the general outlook in the colony betokens prosperity, and in that prosperity the Bank will assuredly share. The Chairman in his report instanced several directions in which improvement was unmistakeably. As he indicated, there has been a general upward tendency in the prices of our chief staples. Wool is firm at a lair figure, grain is the same, and there is promise ol an excellent harvest in the South. Timber is looking up, and last, but certainly not least, we are to all appearances on the eve of such a development of our mining industry as the colony has never seen. The Chairman's forecast of the future is not exaggerated, nor is it even partial. Visitors from other lands, shrewd and practical men, take an even more sanguine view of the future of New Zealand. Only yesterday one of our representatives had a long conversation with Mr Figgis, a leading gum merchant in London, who is here on his way round the world. He expressed surprise at the evidences of prosperity he saw around him, and spoke in a way of the gum trads that should revive the drooping heart of the gumdigger as he toils among the ranges and swamps of the North, and of the merchants here who have not always "got the fat," as some may think. The outlook is hopeful tor us all, and (or the Bank that has so long been identified with the fortunes ot the colony. Now that it has become still more closely identified we trust that it will prosper along with us, and quite regain the prestige it lost in its day ot misfortune.