BANK OF NEW ZEALAND.

Bush Advocate, Volume XXI, Issue 296, 18 June 1909, Page 5

BANK OF NEW ZEALAND.

♦ [PREBB ASSOCIATION.] WELLINGTON, to-day. At the annual meeting oil the Bank of New Zealand to-day, thi> chairman, Mr H. Beauchamp, moved the adoption of the report and balancesheet. He said the quest i-v.i <>f increasing the bank's capital had been engaging the attention of the Board, but so far no definite scheme had been formulated. He dealt with the figures already published, and. gave a statement of the position in regard to the Assets Realisation Board. This showed the balances owing by purchasers was £336,931. During this year the unrealised assets were reduced from £93,195 to £66,778, and since March 31st further sales had been effected amounting to £10,467. The Chairman considered the decrease highly satisfactory. Dealing with the state of trado generally, he said it was most disconcerting to admit that a sudden drop in the value of primary produce, for one season only, should cause such a financial disturbance as was lately experienced. The inordinate prices given for laud was another cause of depression Cheap land was more necessary than cheap money. <■ Had land va-hies been maintained at normal treasonable level, we should not now be troubled with monetary tightness or distress arising from unemploy- ! ment. Land should be bought and sold on the basis of its productive value in normal times. Industry in the North Island would be greatly stimulated by the settlement of native lands. He did not anticipate the present depression would be so actue or lengthy as previous ones. The financial stringency was not so pronounced at the present moment. The world's trade for the past year had been unsatisfactory, which was due to lower prices and shrinkage in consumption. The exports from the dominion showed a decrease of 26 millions. The wool market showed improvement, and the outlook was exceptionally good. Exports of butter and cheese showed an increase during the past season, but he anticipated a serious drop in values of dairying land, due to the excessive prices given, and to the competition of other countries. The state of the frozen meat trade was most di»couraging. The industrial depression of Britain was partly responsible for the shinkage in values. The Argentine was becoming a strong competitor, and special' efforts should be made to induce foreign Governments to relax the conditions preventing New Zealand finding fresh markets. Frozen meat, lienijjj and kauri guni showed no impromevent in prices, but the wheat market was hopeful. New Zealand has a surplus of two million bushels, and with the London quotations at 43, and 445. a quarter, wheat growers in the dominion should make money, but the new crops in America arid Britain would cause a readjustment of values. Therefore it was not advisable that farmers should gamble on the market prospects. Mr Martin Kennedy seconded the motion, and said the year's operations as disclosed by the balancesheet must be accepted as highly satisfactory. Referring to the bonus, he said it was less than many proprietors had been expecting, especially those wlio suffered heavily in the bank's failure, .but ho asked them to look to the acts of the directorate rather than to the amount of bonus. It was an indication that as soon as circumstances admit the 2£ per cent, bonus would be increased to 5 per cent, in future years. Ho did not favor any proposal to increase the capital, especially as they were building' up the reservo fund so rapidly. The necessity for additional capital -would not likely arise before 1914, wh.cn the guaranteed million falls due. To issue new shares legislation Mould be required. One could never be sure what would happen to a Bill in the House of Parliament . ■ Mr John Mills (Port Chalmers) expressed the hope that a 5 per cent, bonus would be paid next year. In reply, Mr Beauchamp said the board was actuated by a desire to place the affairs of the bank on a sound foundation. He did not wish, it to be taken that a bonus of 2£ per cunt, this year, was to be taken as an indication that there would be another 2J per cent, on top of that next year. Before increased capital would be asked for, an assurance would be sought 'from, the Premier that the Bill would not be subjected to alterations. It would bo the Bill, the whole Bill, and nothing but the Bill. I Owing to the cautious policy the i bank was pursuing, shareholders must jiot 1x- disappointed next year if such good results were nob shown as ivas^ ! the case for the two last years. ! The- niceting dosed with votes of thanks to the directors and^staff. !