THE BANK OF NEW ZEALAND.

Auckland Star, Volume L, Issue 140, 13 June 1919, Page 4

THE BANK OF NEW ZEALAND.

The prosperity of the Bank of New Zealand is an indication of the prosperity of the Dominion. Just as it is a very far cry from the national revenue of to-day to the revenue of the early; nineties, before the "good times" dawned, so a long distance in figure as well as in timo separates the Bank's balance sheet of to-day from the crisis of 1894. The Bank has had an exceedingly good year. Its gross profits were £459,000, and net profits £388,000, on a capital of two and a-quarter millions, which, with the balance from last year, enable the management to pay a dividend at the rate of 15 per cent, and transfer £150,000 to reserve. The reserve now stands at £2,350,000, or nearly £100,000 more titan the capital. Among the assets is this large item: Money at call and short notice, Government and other securities, in London, £13,179,000. Tho size of this sum is partly duo to the fact that it is far easier to. invest money for short periods- in London than it is in New Zealand. These figures, together with the impressive figures for deposits in tho Bank of Xew Zealand and other hanks in the Dominion, show that there is plenty of New Zealand money for investment, and point to the desirability of the Government giving the people some indication soon as to when it proposes to abolish the war restrictions on finance. With so much money available it is surely desirable that freedom of trade should be resumed as soon as possible. The position of the Bank of Now Zealand to-day is practically impregnable. It has built up a reserve greater than the capital—ten years ago the reserve was only £450,000 —and it is working in partnership with and under the guarantee of the State. The shareholders are indeed fortunate people. The bank is to such an extent a Dominion institution that its prosperity is the concern of all, but some people will ask- whether it is altogether right that an institur tion whicii at one time had to be propped up by the State's money and is now guaranteed against disaster by all tho resources of the State, should be. allowed to make quite so much money. Such critics, however, have the satisfaction of knowing that the State, as a shareholder in the bank, takes a share of the profits.