THE NATIONAL BANK OF NEW ZEALAND.

Press, Volume LIV, Issue 9815, 26 August 1897, Page 6

THE NATIONAL BANK OF NEW ZEALAND.

(FROM OUR OWN CORRESPONDENT).

LONDON, J <ly 16.

On Tuesday last the twenty-fift-i general meeting of tho National Bank of New Zealand was held at Winchester House.

Mr James Macandrew, who was in the chair, congratulated the shareholders upon the Fatisfactory business that had been done by the Bank during the year. It was true there had been no very rapid advances in the condition of the colony of New Zealand, but undoubtedly progress had been made, and a fair amount of prosperity enjoyed. The revenue was increasing, and the colonial producers were satisfied with the prices they were getting for their grain, wool, and dairy produce, tho frozen meat trade beintf perhaps an exception to this rule. Any abnormal excitement as to mining had now quieted flown, and new mining enterpriser were conning forward less frequently, as there was not so much encouragement for them in the London market. But the established New Zealand mines were quoted at high premiums,'and their output of gold was largely increasing. Mr Macandrew went on to say that the Bank had not been standing still in the colony, but had materially expanded its business during the year. A large number of new accounts had again been opened, and the Directors were perfectly satisfied with the soundness of the business thus introduced, which moreover told a favourable tale in the balance-sheet. The net circulation had increased to about £18,000, and easterners' accounts and fixed deposits to £235,000. Fixed deposits showed, as last year, a steady increase in this country and still larger in the colony. The Bank's business had been worked with a smaller amount of cash thau before, the reduction being nearly £100,000. It had been utilised by the purchase of interest-bearing securities, which were yielding a fair return and which were always available to raise cash upon what should be necessary. These securities amounted to about £120,000, but would be liable to reduction should opportunities occur of placing them out advantageously in the colony. Advances oi Security in various forms showed an in4B»ose of £380,000, and £5000 had been Written off from the account of landed property, premises and furniture. Turning to the profit and loss account, the Chairman explained that the dividend remained at 5 per cent, as last year, because the Directors wished to strengthen their reserves as much as possible, so as to increase the credit and earning power of the Bank, and therefore, after making provision for all bad and doubtful debts, they accordingly proposed to place £10,000 to the reeerve account. The increase in charges •was due to the extension of business. The shares of the Bank had risen from 30s a year ago to £2, and could not be purchased for less than the latter sum, which, however, was still 10s below their par value. He was disappointed that they had nob yet reached par, but he felt confident that they would before long. The business of the Bank had never been in a more encouraging position than at the present time. It was doing a good and sound business in the colony, and stood in high estimation with the colonial customers, while the profits had increased in spite of the reduced rate of interest.

finally Mr Macandrew paid a cordial tribute of praise and appreciation to the Bank's very able and energetic General Manager in Wellington, Mr Coates, and to the Bunk's staff both at Home and abroad. The zealous efforts of Mr Coates and the staff had contributed to the year's success, and the Directors were glad to have the opportunity of expressing how highly satisfied they were with the manner in which all the respective duties had been discharged. The Chairman thought there was every reason to hope for a continuance of advancing prosperity during the ensuing year, and agreed with what the shareholders had done in placing the Bank upon as , secure and solid a position as possible. Mr J. M. Sto barb seconded the adoption of the report, and confirmed every word the Chairman had said both as to the sound business of the Bank, the good, business that they were doing, and the sound prospects for the future. He hoped next year to see the profits much increased and the shares at a better price. Mr Landau, who had been a shareholder from the foundation of the Bank, said he had recently increased his holding, and that although he agreed with the building up of a large reserve, he thought that a sum equal to 25 per cent, of the net profit would be sufficient for the purpose, and if a larger distribution were made to the shareholders shares wonld rise m the market. He also advocated the founding of a pension fund for the staff.

Mr Horace Tahonrdin approved the Directors' policy in building up a large reserve, and thought that the shareholders ought to be well satisfied. The Bank now occupied an excellent position, and the year'o profits had increased from £63,000 to £69,000.

The Chairman reminded the shareholders that the Bank had in former years a reserve fund which waa wiped away at the time of reconstruction, and expressed the opinion that a reserve should be built up until it reached a substantial amount. He did not think a reserve fnnd of £30,000 could be called excessive, and said the Board would not like to alter the rate of dividend unless they were certain they would be able to continue it. He added that the accounts received since the 31st March continued to be highly satisfactory, and showed no falling oft , in the previous rates of profits. The report and balance sheet were then adopted, a dividend declared, the retiring Directora, Messrs E. C. Morgan and T. Seaver, re-elected, and cordial votes of thanks wero passed to the Chairman, Directors, Qeneral Manager and staff, this closing the proceedings. At the close of the meeting a shareholder mentioned that his broker was unable to purchase National Bank shares at £2, and had had to pay £2 2s (id to get them to fulfil an ord«r he had on his books for 300. There is no doubt that the National Bank of New Zealand is going up steadily in favour and confidence, and that the statement and explanations given by the Chairman at this meeting has tended materially to enhance this improvement in feeling.