BANK OF NEW SOUTH WALES.

Press, Volume LI, Issue 8793, 14 May 1894, Page 5

BANK OF NEW SOUTH WALES.

EIGHTY.SBVENTH HALF-YEARLY MEETING. ENCOURAGING ipisOH BY THE CHAIRMAN. SYDNEY, April 30fcli. The eighty-seventh half-yearly meeting of the Bank of New South Wales was held to-day. Mr T. Buckland, the Chairman, in moving the adoption of the balance sheet and report, said the shareholders on noticing the large holding of coin and Government securities would be prepared for suoh a contraction of / business as must reduce the profit-earning power of the Bank. But experience had shown the wisdom of making everything subservient to the maintenance of a strong financial position. The need for auob a policy had been demonstrated by the diecredit which'a certain section of the population, including several men of position, sought to throw on the financial instil ulione of the colony. The injury done by thia unfair and irrational criticism, however, unfortunately was not confined to, the financial institutions alone, but affected the credit of the colony generally. In reference to the reserves of coin ana Government securities, it was right to say that a portion of the surplus arose from deposits of a temporary character awaiting investment or disposal otherwise, and whereas that portion would in England be profitably employed in a class of security (always available) for repayment on demand, here no such security existed, and the money remained almost unproductive, as, owing to the contraction of the mercantile busiaeea [of the colonies, the ordinary channels for earning profit had been much curtailed. Among the uoticeable and satisfactory features of the past half-year was the return of public confidence at the time when the Bank Issue Act terminated, and coin circulation was resumed without the least inconvenience or strain on the institution. During the period that Act was in operation, theß&uk had nlwayckeptavaUable sufficient coin to retire its < note circulation, j and to provide for alt other business requirements. This had been done without pressure on customers, and it had been found that while they were considerate to their debtors the public had been considerate to them, and the public and the colonies had ai a consequence benefited. As a comment upon the predictions that the passing of the Bank Issue Act would involve the issue of many millions of notes, the circulation of the Bank in 1884 -was £810,322, and in 1894 only £851,652, although the business of the institution during that period had increased SO per cent. In referring to the future, the speaker dwelt upon the good result of the profitable employment of many people, who otherwise would be idle, upon che gold fields, and pointed to the beneficial effect which the meat-freezing works were having on the value of pastoral property, &od in stimulating the pastoral industry generally, Recognising the importance of the subject and;tne need of enabling the pastoralists to get rid of their surplus stock, the Board had decided to give reasonable assistance to those Companies which were taking up the i matter. Inviewof thelargeincreaae of capital recently j»ceiv*d, th* decresae of advances, ! the Urge holding of coin not productive, and the diminished value of . products rendering a liberal provision for contingencies desirable, the Directors felt that a reduction in the dividend would meet with the approval of the shareholders. In con* \ elusion, Mr BuckUnd announced with regret that Mr G. Miller* the general manager, j had, af Ser a loyal and honourable service of j forty-two years, decided to retire on account of failing health. That matter reminded him that his age and deafness rendered it advisable that at no distant daw he should retire in favour of a younger and mors energetic man. The report and balance sheet were unanimously adopted, and & complimentary vote of thanks passed to the Soard and the officer! of the Bank.