BANK OF NEW ZEALAND

Dominion, Volume 18, Issue 69, 15 December 1923, Page 5

BANK OF NEW ZEALAND

I HALF-YEARLY MEETING INTERIM DIVIDEND DECLARED OVER-IMPORTS CAUSING CONCERN FUNDS FOR ADVANCES , AND INVESTMENT’ The half-yearly general meeting of siju.dhoiuers of the Bank of New ZeaInad was held yesterday, the chairman George Elliot) presiding, ’there were also present the following directors Sir Harold Beauchamp, Messrs. J. H. Upton, William Reece, and William Watson, and 60 shareholders. The meeting lasted only 25 minutes. Addressing the shareholders the chairman said:— “As most of you are aware, our halfyearly meetings held every December are more or less of a formal character. The only actual business to be transacted on this occasion is the election of a shareholders’ representative, to the board, and the declaration of an' interim dividend. The retiring director, Mr. William Watson, again offers his services, and ag there is no other candidate for the position I have much pleasure in declaring him duly elected. “I am glad to say that the halfyear’s operations fully warrant the declaration of an interim dividend at a rate similar to that paid a year ago. The amount to be distributed is:— £ An interim dividend of Is. 4d. per share on the ordinary shares, which will absorb 150,000 A dLiuend for the year to March 31 next on the preference A shares held by the Government 50,000 And an interim dividend on preference B shares held by tho Government 25,000 Making a total distribution' of £225,000 “The dividend will be payable in Wellington to-morrow and at branches on receipt of advice. Additional Capital. “The issue of £1,125,000 of additional capital announced at our annual meeting in Jyne has been duly made and *£1,111,500 of the amount paid up at November 30 last. “Early in the New Year all the new shares not taken up, as well as, the fractional shares pertaining to the issue, will be offered to shareholders for purchase by tender. In terms of our Deed of Settlement, any premium on these shares must be credited to the reserve fund. The allotment of those shares will be made to the highest tenderers either in full or, as circumstances may require, as nearly as may be, pro rata, subject to payment in cash in full of the amount offered. Shares so allotted will rank for proportionate dividend in respect of capital paid up thereon as form March 8, 1924. The whole of the fractions amount to 1247 shares —a relatively small proportion of tho 750,000 distributed. improved Conditions. . “Since I last addressed you, financial conditions in the Dominion have shown some improvement, though there is still much leeway to be made up. The weaSfior during the winter and early spring was most unfavourable, but the last two months have been much better, and there is, at the present moment, every prospect of a large output of produce. Prices of staple products are quite satisfactory, qnd those primary producers who purchased their land at fair prices, and who are not overburdened with debt, should do reasonably well. Owing to competition from overseas many of our secondary industries are somewhat inclined to languish. Only by increased l efficient/ and by the adoption of the latest methods in working, will our manufacturers be able to cope successfully with the flood of importations. “The large volume of imports during Cue last twelve months is causing some concern and, notwithstanding the lesson importers had in 1921-1922, there is said to be considerable overstocking. Articles of luxury, especially, have been imported to an extent that raises misgivings amongst those who recognise tho necessity for strict economy in both public ana private-ex-penditure. “Monetary conditions in London were until a few weeks back much about the same as ■ they were six months ago. The disturbing influence of the general election has, however, brought about a fall in the value of gilt-edged stocks, and two important recent issues of New Zealand local body debentures were unfavourably received by the British public. “In Australia, rates have hardened, several of the State Governments paying 5J per cent., free of State and Fed-* eral income tax, for ten-year loans. Bank overdraft rates there are practically the same as those in New Zealand. No Shortage of Funds. “In the Dominion, there is no shortage of funds for desirable investments. In the North Island, where a greater demand for money exists, rates for first class mortgages are from 6 to 64 per cent., while in the South Island the ruling rate is 6 per cent. Local bodies are in some instances paying 5J per cent for loan issues, but in most cases 5J per cent is paid, and even at the latter figure large investors are not buying freely. The increased income tax on debenture issues has undoubtedly affected these loans; 4J per cent, war loan stock, free of income tax, at present market prices gives a better return to most investors. “The State Advances Department has beeen inundated with ’oplications for loans, the reason being found in the exceedingly liberal conditions provided by the legislation passed last session. To some extent, these advances have been applied for to clear off existing charges - and thus a certain amount of money for investment in other channels is being freed. “In view of our increased capital, applications to the bank for advances are being encouraged, and no desirable business of a proper banking character has been declined. Mr. Watson thanked the shareholders for his re-election, and asswefi them that, ns hitherto, his best endeavours would be at -.heir service. Appointment of Dirootor. “In connection with die vacancy off the Board of Directors, caused by the death of the late Mr. Kane, I havo to state,” said the chairman, “that the question of appointing a shareholder temporarily to the position has considered, and it has been decided that no appointment be made in the meantime. (Hear, hear.) The vacancy can be filled at she shareholders’ annual meeting in June. “You are probably aware,” added Sir George Elliot, “that ihareholders who intend to seek election must, according to our deed of settlement, four calendar months’ lotioe in writing of their intention to do so. The earliest time, therefore, that the election could take place is in May, and the annual meeting is held in the following month. It is not considered necessary to hold a special meeting.” The meeting then terminated.