THE OF NEW ZEALAND.

Dominion, Volume 4, Issue 996, 10 December 1910, Page 7

THE OF NEW ZEALAND.

HALF-YEARLY MEETING.' ' toTERIM DIVIDEND OF 6 PER CENT. • GOOD PROSPECTS. There was a fair attendance of sharo'holders;at the* Bank of Now.Zealand's half-yearly, meeting,- held yesterday. The directors present were Mr. H. Beauchamp (chairman); and Messrs. M. Kennedy, W; Milne, AV. H. Quick, J. ,B. Reid/ r.ud W. Watson. The general manager (Mr. W, Callender) and chief auditor (Mr. B. M. Litchfield) also attended. ■ • '•''"■. THE CHAIRMAN'S SPEECH. "VASTLY IMPROVED PROSPECTS." Reporting on the operations of. the bank and the state of trado during the half-year ended September 30, 1910, Mr. HI Beauchamp (chairman of directors), said: — - . ' '. At thp December meeting of the bank bur business, as most of you are aware, is confined to thfe election of 4 director and the declaration of an interim dividend.' '-' ."'.-■ . ~■■.

In respect to tho former; I have to announce, that the only' candidate is Mr. William Watson, and' that gentleman haying given tho necessary notice, •I have, much pleasure iu declaring him to be duly elected. Mr. ■ Watson has occupied a seat on the board for sixteen years, namely, since 1894. With regard to our profits for the half-year, ended September 30, these were, unfavourably affected by diminution in earning power through the substantial reduction in advances to"customers in New Zealand." This reduction will not surprise' you when you consider' the large surplus of exports over imports (to which I shall refer later on) for tho year ended September, 1910. Still, our profits ,on tho whole have'been very • satisfactory, and the net .result is considerably better,_ com-pared-with the corresponding neriod in 1909.. Such being the.case, wo feel justified ! iii declaring an-interim dividend of six per cent for the past half-year, payable..on the ordinary: shares and on. the-preference shares' held by the Crown.' If profits are maintained (and I see no reason why. they should not be), I am hopeful, that the opinion I expressed when I had tho pleasure of addressing you in June last,.as to the return you are likely to get at the close of tho current financial year, will be realised.' '

■ Our general manager, Mr. William Callender,. returned.to headquarters on the 9th.ultimo, in London, ho madeVa thorough inspection of. . our branch,in that city, and lam glad .to say was able to report most satisfactorily as to the character of tho. business transacted by. us at that point. We are . satisfied •■ that ;tho experienco gained by Mr. .Callender, in London will prove of much .advantage to him and to-the bank. : .. - •. •

During Mr. Callender's absence, .tho duties of -general manager : wero dis-. charged.by Mr. A. E. Mills—tho senior inspector—to the entire satisfaction of the board.

After: Eerving the bank ably for: 42 years, Mr. James Baxter, has : recently resigned his position as. manager. in Londohj. and . Mr. Alexander; Kay : (inwhom tho board have every confidence) has been appointed "to' succeed him. We have -fittingly recognised'and 'placed : on record our, appreciation of the long and faithful,"services rendered,by Mr. Baxtep-- . ■ .. ■'■■■.' :■ '

■ '.To/.strengthen the.-staff ..in, London, the board, decided to appoint an assistant . manager, and it ■ was . considered. that/it would be to the bank's advan- ! tagio to have in.'London' an officer with colonial experience' and conversant..with, the conditions obtaining in the Dominion: effect has been given to this decision. With these preliminary remarks, I may. be permitted to refer, briefly to the monetary and commercial con- , litions as they appear to me. "■ "Flush of Loanable Gredit." . A year ago I was'able to congratulate shareholders apd the country generally .on the vastly improved prospects, and I am pleased, on this occasion, to be in a position to reiterate those, congratulations and to emphasise 'them, the banks to-day are flush of loanible credit, as is shown by the marked expansion of the fixed and free deposits and the very insignificant increase in the advances and -discounts. Tho figures of the several banks for the September quarter compare as under:— . . '.. '

Fixed and'Freo Deposits. 1910. 1909. . Bank. £ ■ £ New Zealand ... 11,051,415 10,199,028 "Onion ......... 3,221,512 2,790,889 New South Wales 3,336,191 3,009,416 Australasia ..... 2,005,910 1,736,224 National , 3,529,321 3,243,663 ' ■ . ;"'. £23,144,349 £20,979,120 (Note'.—These figures do not'. include Government deposits.) : Advances and Discounts. / • . Bank. & ' £ New Zealand ...... 6,966,691 7,091,411 Union ..... 3,222,958 3,160,610 N.S. Wales .....; 2,516,493 2,505,193 Australasia 2,794,853 2,756,305 National 2,676,566 2,657,188 ■ 18,177,596 18,170,707 Thus, while the deposits have increased by £2,165,229, the advances and discounts show the trifling increase of £6889. ■ . ' . It may be urged that the banks have been too particular about securities, and could have made larger advances were they less punctilious. This is not true.' Every legitimate demand on tho banks has-been promptly met, and no one with a reasonable banking security ■has been refused an advance. Unfortunately, thero is still a lack of industrial enterprise, and money is permitted to lie, idle, in the banks—or, to put it another way, people are throwing upon the banks' tho responsibility of finding an investment outlet instead of undertaking it themselves. ■ .; Trado Outlook. The/trade revival.which set in about twelve! months.ago appears to be fairly general: A white paper issued by the Board ; of Trado gives comparisons of tho exports and imports of tho principal 'countries for the "first- six months of 1910, which show a substantial increase all round. . Taking,the figures of a few countries, wo obtain tho following:— Imports. ■1910. 1909. ■ :- ■ £ £ U. Kingdom 279,141,000 200,099,00 C Germany 209,542,000 204,763,00 C tJ.S.\ America ' 166,724,000 149,583,00 C Canada ...... 43,219,000 33,158,00 c British - India 40,169,000 37,518,00( Japan' ..: 24,459,000 21,845,00 c British South ' 'Africa 17,840,000 12,967,00( 'Australia 20,709,000 23,235,001 Exports. U. Kingdom 204,586,000 176,934,001 • Germany 174,077,000 139,439,001 ir.S. • America 163,349,000 161,398,001 Canada .....: 23,792,000 20,010,001 British. , India . 77,820,000 07,549,00' Japan- 21,346,000: 18,950,00 British South ' ' ' • Africa ...... 27,249,000 23,742,00 Australia ....' 33,895,000 29,458,00

The trade pf New Zealand has also expanded: the figures for the year ended September 30 lad compare with those of the threes previous years hs under (Specie is.omitted in each case)— ..Exports. Imports. Year. £ £ 1906-7 19,891,8-16 16,071,887 1907-S 16,370,587 17,750,86S 1908-9 ...... 18,700,156 14,916,005 1909-10 ... . 211958,864 16,101,856 The excess of exports over imports for the past year amounts to the Jarge sum of £5,857,078, which, will account for the growth of deposits in tho banks and tho buoyancy of the Treasury returns. Tho British investor. Tho .expansion in trade necessarily calls for considerable capital, and the records of tho year show that oxtonsivo demands havo been made upon the British investor. For the ninemonths ended September 30, the new capital raised in Great Britain amounted to £216,755,300, as compared with ! £148,768,000 for the' corresponding period of 1009, and £141,210,300 in ( the nine' mouths of 1908. Tho destination of the new capital compares as under:—. , :. •■ . . 1910. . 1909, . .■■-.'.£ , £ . United Kingdom 54,845,500- 16,277,500 — 6*321,000 WOO ¥o t£?— 55^200572^00 £216,755,300 £145,763,000 During the past nino months Canada obtained £31,853j900 and Australasia only £7,359,000. In nine months Canada, the United States, Argentine and. Brazil have raised over £90,000,000 "from the British investor, and the future demands of these countries are likely to be as large as^ever. It is generally considered _ by those competent to express an opinion that the keen demand for capital must,. m the near future, cause the _ rates tor money to harden, and already wo see factors at work to bring about this result. The fall in Consols to £78 15s yielding tho investor about £3-3s. 6d. per cent., may be in part attributed to tho political outlook; but, taken in conjunction with the fact that other gilt-edged securities have declined, it shows that investors expect a higher rate of interest than formerly. Borrowing in tho London market, excepo at higher rates, will, I fear, bo a difficult operation. ■ In particular Local Bodies, with commitments, may find this troublesome matter; primary Products. The outlook for our primary products is not perhaps quite as good as it was this time a year ago. Still, it is by no means unfavourable. . Wool-is lower than .;it. was a.few months ago, and the main reason for this decline appears to be the absence of American competition. yn AJra ultimo our London office telegraphed us as .follows:— . . , "The sales havo opened with strong competition and largo attendance or. buyers. There is a good demand for all kinds of wool. Prices are \lnchang7 G Tho high cost of living in the United States has- checked business in many, directions, but a. recent cable. message is more reassuring,: • "Bumper corn crops and heavy receipts of cattle and hogs at the stock' vards have caused a decline of • foodstuffs throughout the United States.. This will probably result 111 increased activity, and wool is bound, sooner or later, to be favourably,aftected.by tho ■demands of America.:.,." ; .,, :. {: .-•,.., Another advice from a Now York correspondent reads X-r -x-., ..;..; .-;.u.:.,;..i->. "Politics, crops, arid the money mar--ket all look better. Wall Street's fears that tho corporations will bo iiarsnly. dealt with, by' Government are diminishing. A large: maize crop is, practically ■assured, and there is little danger of any serious monoj\ squeeze if speculation can be kept down."

"A Gigantic Barrior." ■' It may not be generally known what a gigantic barrier is erected against the importation of wool (raw and manufactured) into the United States of America. For the year ended June 30, 1910', when the imports under this head amounted in valuo to approximately £14,000,000, the ad valorem . rate of duty equalled .59.23 per cent; as against 63.18 per cent in 1009. ' A writer ,in "The "Economist," referring to this matter, says:— .. _ , ■• "Tho woollen tariff is no doubt the most cruel f.nd criminal of all tho schedules, because it means that in the frightfully severe winters of the northern States the poorest class of labourers are clothed entirely in wretched shoddy, and many even of the well-to-do have to put up with cotton blankets. Some calculations lmvo been made of the high rate of mortality caused in the winter months by this want of .warm clothThe Democrats are making (as thoy : have beeu for many years past) strenuous efforts to obtain a, substantial N reduction in this impost. If they are successful I need not point out what an important bearing it would hayo upon o*ur trade relations with the TJnited States. Butter has not quite responded to tho sanguino opinions held by those, in 'the trade, yet prices realised by producers leave a handsome profit. This industry is. continuing to expand most satisfactorily. • • ■ • New Markets.. •Frozen meat has maintained a good market, but, in view of tho increase' in American and Australian.supplies, it. is a question whether this market \yill_ hold at its present comparatively high level. In -this connection, it is interesting and instructive .to note the strong and persistent agitation for cheaper meat now prevailing on the Continent, of Europe—particularly in Austria. It. is to be honed that this may ultimately be the means.of enabling us to find: additional and profitable markets for that article. Already one or two small shipments of frozen mutton and lamb have been admitted into Austria and sold at high prices/Taking a comprehensive view of the outlook, I think New Zealand will have a prosperous NeV Year; and it is to be hoped that that prosperity , will not. result, in a condition of'value inflation and extravagance in general. Rather may we , hope that endeavours trill be mado during good times to establish enterprises end build up industries. Concluding,. I have to auuounce that the interim dividend will bo payablo to shareholders in Wellington on Monday next, December 12, and at branches on receipt of advice. Mr. W. AVatson thanked shareholders for re-electing him to tho board, and congratulated them on tho declaration of a dividend, which was thoroughly justified in view of the steady progress made by the bank. There was no discussion on the chairman's report. . VOTE OF THANKS. GRATIFIED SHAREHOLDERS, Mr. M. Kennedy, in proposing a vote of thanks to Mr. Beauchamp, said it was highly satisfactory that existing indications and the profits of the bank for the year warranted the chairman and board in declaring an increased dividend. The fifteen per cent, that they had been so long looking for was certainly in sight. They had been often told that even when tho fifteen per cent, was approached they would riot be satisfied, but would want more. It would not be wise to indicate in any way to shareholders that there would be 'a likelihood of any increase (oil fifteen per cent.) for some long time to come at any rate! If there wero any

that kind, it would only advance the market price of shares, perhaps to an extent not, warranted. The speaker had been described as aggressive in demanding -increased'dividends; and his name had been associated with an assertion that however much the shareholders got they would want niore. Ho took this opportunity of saying that, no matter how long ho might bo on tho board before advocating any increase on a dividend of fifteen per pent., he would want to see the 1 reserve strengthened to such an extent that no exception could bo takeii to tho augmented dividend. Mr. T. S. Woston, seconding the motion, expressed the gratitude of shareholders for the care and consideration given by Mr. Beauchamp to the management of the, bank. They recognised that more -was thrown on him than on directors not resident in 'Wellington, and realised that-Mr. • Beauchamp put his whole heart, iind soul into his work as: chairman.. ..' Mr; Beauchamp, in thanking shareholders for their vote of thanks, said he recognised that he himself could do nothing were it not for the very able assistance of his colleagues and a particularly good staff, from the general manager right down to the junior office boy; The. staff of the Bank of New Zealand .was a veiy excellent one, and lately they had been doing all they could to "induce Others to join a stair that was probably'the best in Australasia. ' I There being no further business, tho meeting terminated.