BANK OF NEW ZEALAND

Auckland Star, Volume LXVI, Issue 139, 14 June 1935, Page 6

BANK OF NEW ZEALAND

It used to be the habit of the chairman of the Bank of New Zealand to make his annunl speech to shareholders an address to the public as well. That is less so this year. Shareholders of the Bank met to-day under different conditions from a year ago, for the Reserve Bank was not then in operation. Mr. Watson has used fewer words in telling shareholders what the effects so far have been than he gave to surmise last year. Perhaps it is too early yet for an appraisal of any value. The Reserve Bank is still in its infancy; only part of its machinery has been set in motion, and it is cautiously feeling its way. At the present time it exercises three main functions, as controller of the note issue, banker for the Government, and a bankers' bank. In no sense is it a trading br.nk. The Bank of New Zealand still retains its place as the paramount financial institution in the country; it continues to be the corner-stone of our credit structure and a mirror of our financial and economic conditions. Its operations are interwoven with every aspect of our business life. The chairman has replied to critics who say that the trading banks are embarrassed by idle money, but his statement only partly disposes of the critics. The position is that the banks, are hard put to it to find profitable outlets for their funds. Looking to the future, Mr. Watson sees a new competitor arising in the National Mortgage Corporation, but he does not think its challenge will bo serious. The banks are operating in ,a ■*_~ j_._;£