Auckland Savings Bank.

Auckland Star, Volume XXIX, Issue 284, 1 December 1898, Page 6 (Supplement)

Auckland Savings Bank.

A PROSPEKOUS INSTITUTION. 7

The Auckland■ Savings Bank, has served an important part in the community in. stimulating that germ of thrift found more or less developed in everyone's nature. By allowing .interest "on all deposits, and accepting deposits of any sum, it has induced many people of the working classes to open accounts who would never have entertained the idea of a banking account under other conditions. Messrs J. J. Symonds, J. Logan Campbell, John McDougall, David Graham, R. A. Fitzgerald, T. S. Forsyth, Alex. Kennedy, W. S. Graham, Andrew Sinclair (Colonial Secretary), Alex. Shepherd (Colonial Treasurer), D. Rough, Wm. Connell, the Revs. Thos. Buddie, and J. F. Churton, and Dr. Johnson, who founded the Auckland Savings Bankin 1847, could have had little prescience of the future the Bank had before it. Opened on the sth June, 1847, in the Mechanics' Institute, Messrs J. Dilworth, J. L. Campbell, and J. J. Montefiore, who had undertaken the duties of honorary accountants for six months, attended for an hour, and also for a similar period on June 7, 12, and 14, without any deposit being made. On the 10th inst., liowever, the fifth occasion of the Bank being open, a deposit of £10 was made, and by the end of the year ..the number of depositors was nineteen, ' and the sum deposited £176 4s. In December, 1847, representations were made to the Lieut.-Governor, and in 1848 the institution was taken under, the Savings Bank Ordinance, an Act of the previous year, and under the system of management then inaugurated the affairs of the Bank have been transacted up to the present time, the trustees who control the policy, and to whom the ; manager is responsible, being Government nominees.

amount, of r the. securities held. It is said, however, that this temporary severe set back told for the ultimate good of the Bank, plainly showing the trustees that provision must be made for such contingencies, and that the investment of funds required to be in not only safe but also-realis-able securities. The trustees, in 1860, borrowed £1,200 to erect bank premises. A site having twenty feet frontage to Queen street, and being part of the land now occupied by the bank premises, had been granted by the Government in 1857 and in I^6o an additional frontage of 16 feet 9 inches contiguous was purchased for £ 375, and on this land the bank buildings were erected. In October, 1872, it was decided to open the bank daily from 12 to 1, and on Saturday afternoon from 4to 6. Further extension of the daily hours from 12 to 2 was made in 1875, the appreciated innovation of Saturday evening opening from 7 to 9 having been made previously (1873). The penny bank was established in 1870, and has since been one of the most popular features of the Bank's business. With the gradual growth of the place, so the operations of the Bank extended, receiving its first considerable stimulus from the mining boom of from 1567 to 1874. The gradual expansion of business resulted in a further necessary extension of the hours in 1877 to from 10 to 2 daily; and in July, 1880, were adopted the regular bank hours of from 10 to. 3, which,- at' a subsequent date, were further extended an hour. During the more recent history of the Bank, there has been no incident of particular moment, with the exception, perhaps,of a panic on September. Ist of 1893. The assistance lent by the local banks and the prompt action of the Govern-

The business progressed slowly, the offices being, to begin with, in the premises of the Union Bank of Australia, at the top of Shortland street. At the.end of 1852 the Bank had not attained a very strong financial position, for the trustees found themselves unable, at that time, to pay the £46 5s 9d advanced by the local Go-, vernment in 1848. Difficulty was found during the opening period of the Bank's history in investing depositors' money, for, failing to purchase Government eight per cent, debentures at par, the trustees endeavoured unsuccessfully to invest £70,0 on ten per cent, mortgage. Eventually they were able to place £400 at 8 per cent., the security for this loan being sixty acres of land at Mount Eden. The continuance of the offices on the. premises of the Union Bank of Australia being: found inconvenient, the Government granted the use of a room adjoining the Colonial Bank of Issue, where business was commenced oj^!-**»A^£Q, 1854. The considerable rLJiR t- *^fWM»od class of settlers attb 5i nJi on 01 i* ?T??i*&fea, and the at the latter end of the TiTiffSV^ f \ introduction/ into the province*"'"^*}* Imperial troops in conMaori troubles.of the s'tablishi^ a g-reat deal towards'firmly esw sevei:;,g the Bank, although tlie tffH UfV ** depression through which . .^vl-^dand district passed, on the w'Jiifrawal of the troops about 1566 n „Sally affected the institution so much so indeed 7?F the trustees were compel--1 to realise a considerable

ment in the matter averted any very serious consequences; and as the panic was started by a number of persons whose object was never discovered, and was absolutely without foundation, the mind of the depositors was quickly reassured. The. present handsome bank prem- , ises were opened on May 12, 1884, having been erected at a cost of about £9,000, on the designs of Mr Edward Bartley, whose plans were considered the best of those submitted in response to premiums offered by the trustees. 'The appended tabulated statement gives an excellent idea of how the business of the Bank has gradually increased since the inception of the institution: — ' ' Number of "! Amount of Depositors. Deposits. .. .■ . ~ ■.. £ s(1 1847 19 176 4 0 1852 ....V... 134 .2,248 110 1857 254 6,749 S 7 1862 4 910 ..20,029 4 4 71867 ........'1.254 ~. 24.255 1 7 1872 1,310 .................. 36,230 16 11 ISB2 6.904 1887 .......,12,894 438;-530^T w6*' • 1892'....';..'.17,206' ..................505,362 8 2 1897 ........22,626 ..................591,622 1 5 • The strong financial position of the Bank to-day may be gathered by a glance at the following abstracts from the balance sheet for the period from January 1. 1597; to December 31 of the same year:-— ■.'.' ,; ■.7

Dr. ~...' ,-- . • £•s. d. To "amount at'credit of 21,076 _•-->.- ---' depositors; Dec. 31, 1896 043,798 14 I ' ■ Deposits-received during year ;• .:■ ending Dec. .31, 1897. £424,903 7/B;'interest-credited to-de-. : positors, £17,537 !)/l-£442,490. _ 16/9; deduct; repayments todepositors for. year 'ending- - -•• - ' Dec ° 31, 1597, -£334,667-r!)/5 - '- : j Increase in deposits during t the year ■ • • • ■ • -^,823 74 Amount at credit 22,626 depositors Dec. 31, 1897 £591,622 1 5 Reserved surplus profits fund 43,000 0.0 Profit and loss account :..... 4,134 O]Q To tal , ~......£638,756 2 .3^ I Cr. .. . ■. , £ s d By mortgages with interest to Dec. 31, 1897 (revalued) 218,36113 9 Reserved surplus profits fund - mortgage 41,43315 0 Investment in New Zealand Government securities...... .150,000 0 0 Investment in Newton Bor- ' ough debentures, with inte- • rest to Dec. 31, 1897.... 1,309 3 1 Investment in Newmarket Borough debentures with interest to Dec. 31, 1897.... ' 3,272 5 9 Investment in Auckland public buildings with interest to Dec. 31, 1897 3,82910 0 Deposit with Bank New Zealand with interest to Dec. 31, 1897 21,824 5 5 Deposit with National Bank of New Zealand with interest to Dec. 31, 1897 21,938 13 . Deposit with Bank New South Wales with interest to Dec 31 1897 21,876 12 6 ': Deposit with Union Bank of Australia with interest to Dec. 31, 1897 6,096 19 7 ' Bank premises 14,000 0 0 Deposit with Bank of New Zealand (working account).. 134,813 4 0 Total of credits .',.' £638,756. 2 3 The first branch added to the business was one at Onehunga, and subsequently were opened branches in Newmarket and Ponsonby. A feature of the Auckland Savings Bank which, perhaps, is not so gener-;:^ ally appreciated as the! purely savings branch of the institution's business, may be mentioned. It is the facilities the bank offers for persons who wish to borrow on freehold security. Many? formalities which form a necessary part of borrowing transactions can,

ii 6, ns with the Sank, be dig- « pensed with; the system of repayment has proved a boon to many/ Among \ borS^^\ are fcq^amtediw-ith the | o^£^ St!tU^ obtains the name Then^c- c?r S!' in Auckland. ■ niSieiSn 11* Ust of trustees is «' ™m- S piehensue one. containing, as it does I among AMnch are many of the best •known, gentlemen in various walks of J In Wifso an^ -1 * comPnsesT Messr qi m n (^-president), J Al % Shera, T. Peacock, W. S. Laurie T T) ■ Nathan J Reid,' W. sthanAn T Chmg, J Edson, W. S. Cochrane, J H Upton, C B. Stone, H. Brett J M HalT°Hon- T Millan> % Hobbs, E. Jlali, ±lon. T. Thompson, M.H R w Crowther, M.H.E., J: Hardie W tV Smith A. R T. Devore^j'ackson Val mer. The offices of president, vice-pri J SKlent and trustees are honorary, The Board giving their time and ability to tlie institution without remuneration I The Governor holds the position of 3' sident. .Mr E. Cameron., has f or ?1 years held the position of man 7 ger, /and Mr ;S. ;G. Rountree that" of accountant for 22 years Th ■^^^.i*^^^^ 1927 Queer ■ !' street, Auckland; and the branch?. are at Ponsonby road, Newton; Man kau road, Newmarket; Queen stre Onehtmga. At the present time Bank is open daily (Saturdays cepted) fom 10 to 4 o'clock. On Sai days: 10 a.m. to 12 noon; and on 7 urday evenings (to receive de] 7:; only) from 7 to 9.