BANK OF NEW ZEALAND.

Dunstan Times, Issue 917, 14 November 1879, Page 3

BANK OF NEW ZEALAND.

The half-yearly general nieetinsrof shareholders was held mi October 23- John Lilian Campbell, Esq (Chairman of the Board of Directors), presiding. There was a large attendance o shareho dors. The (leneral Manager read the advertisem»nt announcing the meeting, also the hj i f yearly '■cp irt. as fo’lows : i Thir'-v sixth Ili'.roßr (J f the Directors op tub Hank or S’uw Zealand, ro the Half vfari.y Denf.rai, Mf.K‘ iso of the Pr triemrs. held at he Banking- ■ HOUSE. AUCKLAND. ON THURSDAY, 23RD October. 1879. The Directors beg to submit the result i of the past, half year’s operations, tvnich j will, no doubt. He considered sa'islactmy i £ s. d. The net profit at 30th Septeniherafter making ample appropriation for deficiencies considered had of doubtful, and the usual reduction in Bank promises and furniture accounts, amounts to .. 69,033 54 9 To which has to be added Premium on 25 521 new shares taken up, part of 27.500 issued under authority of the half-yearly meeting of Hie orooriotors, held on the 29th October, 1573 ... 130,013 15 0 Balance from ha'fvear ended 31st March, 1879 9,753 11 8 Making a total available for division of .. £259,406 1 5 Which it is now recommended he appropriated aJ follows— To payment of dividend at the rale of 10 per cent. per annum 49,010 10 0 T- bonus of 5s per share equal to 5 per cent. per annum. 24,505 5 0 To propose 1 addi ion to reserve fn ml 180,000 0 0 To balance carried to profit and loss new account ... 5.890 6 5 The dividend and bonus will he payable at Head Otfic ■, Auckland, on Friday, tho 24th October, and at Branches on receipt , of advice. 1 J. LOQAN CAMPBELL, President.

A or, reo atr Balance-sheet of the Bank of New Zealand at 30th September, 1879. including London Office at 31 st July, 1879. liabilities. Dr. £ b. d. Capital €1,009,000; less £l9,79o—par va'ue of 1979 new shares of £lO eaeh, held in reserve ... 980,210 0 0 Reserve fund ... 375.000 0 0 Notes in circulation ... 405 165 0 0 Bibs pay aide in circulation 1,480,557 0 5 Deposits and other liabilities 0,058,287 13 8 Balance of profit and loss. 259.400 1 5 £10,224,025 15 0 ASSETS. . Ur. £ s. d. Coin and cash balances at Bankers ... ... 2,054,048 19 4 Bullion on hand find in transit ... ... 214,075 10 0 Government securities .. 200,1)00 0 0 dills receivable and securities in Loudon .. 884,729 011 Bills discounted and other de ta due to the Bank.. 6,G84,«24 15 6 Landed property, Bank premises ... ... 187,547 3 3 £10,224,625 15 0 PROFIT AND LOSS ACCOUNT. „ Dr. £ a. d. To dividends on 98,021 shares of £lO eaeh, at the rate of 10 per cent, per annum ... 49 010 10 0 To bonus at rate of 5s per share, equal to 5 per cent per annum ... 24,503 5 0 To propped increase to reserve fund _ ... 180.000 0 0 To balance carried to profit ami loss “new account” ... ... 5,890 0 £ £259 400 1 5 Cr £ s. d. •v balance from half-year ended 31st March, 1879 9,753 11 8 >y premium on 25 02l new shares taken up, 27,500 issued under authority of the halfyearly genera! meeting of the proprietors, held on 29th October, 1878... 180,013 15 0 By net. profit for half-year ended 30th September, 1879 09,038 14 9 £259,406 1 5 RESERVE FUND. Dr- £ s. d. To balance ... ... 550,000 0 0 £550,000 0 0 Cr. £ s. d. By balance from half-year ended 3ist March, 1879 ... ... 375,000 0 0 By proposed increase ... 180,000 0 0 £530,000 0 0 Audited. BENJN TOXKS. JOBKPH L WILS-N.

The Chairman, in moving the adoption of the report and balance-sheet, said Gentlemen - I tion of the report and balance sheet which ! have just been read, the usual pleasant j duty is assigned to me of congratulating | shareholders on the success with which the Bank’s business has been conducted during the la»t half-year, and the balance-sheet affords the best evidence of the maintenance of the Bank’s position. When 1 last had the pleasure of a dressing y.,u from this chair 1 took occasion to recount certain adverse influences which then existed, and which for the rime being had un avourably affected Colonial interests But then we had not ful y realised the effect of the' disasters of the previous period, nor did wo then anticipate an unfortunate result in the agricultural operations of this Colony, nor such a long continuance of low prices for wind and cereals which has sinceprevai’ed. The diminished spending power of the p onto, th» contraction of Government works exp mditure, the necessity to provide large remittances to England for public and private liabilities of the Colony, have all had a tendency to increase the pressure on onr monetary ins itutions. But ihe absence of any heavy failures sufficiently proves the readiness with which these institutions responded to the demands made upon them, and is the best proof of the general soundness of the commerce of i the country. As a consequence of the lavish orders which a previous season of unexampled prosivrity had induced importers to send to England, and the diminished consumption from the causes to which I haveallndedj stocks have in many eases aecnmul Hed to an inconvenient extent; but the corrective measures which have now ‘ long been in rq elation are already producing an appreciable effect, and we may con- , Hi lent ly look at an early date to have this ’ temporary difficulty fully remedied. Tin ■ past Season has been one of unusual sever ; by to agriculturists, who, in many ca-es, ! were overburdened by speculative purchases of land •, and tins, in cm junction | with the bad harvest and low pne-s, has caused not a few failures among this class of the community Bur. though numerous, they have not involved any serious amount, ami with the improved prospects for this season—in the exceptionally promising co.i--dil ion of the growing crops, and the enhanced price of wheat,—it may reasonably be expected that much of last season’s loss toonr farming population will this year he recouped. As affecting this institution, although we have as usual been exp ised to exaggerated reports of heavy 10-ses, I am happy in being able to assrtre vou - hat, these have not exceeded the average, and ample provision has been made for them. When 1 last addressed yon 1 reported the result of the issue of the new shares, which has been only partially completed The final fesult, as noted in the balance sheet, is that of the 27,500 shares offered to shareholders we we are left with only 1979. which have not yet been off red for sale, but which the Directors will tak" a favourable opportunity to realise. From the public prints shareholders will have been made aware that we b ive given notice of onr lesi.-o, at the end of six months from the Ist, instant, to terminate the existing agreement as to the Government account, the terms of which have proved of a disadvantageous Character Beyond a mere acknowledgment of ntir notice, no indication has as vet been given of the intentions of the Government, which is anlHei-nGy accounted for in the present political complications, which practically have brought public business to a stand. While prepared tor a severance of the conn'o ! ion, which, on the Whole, has existed so satisfactorily during Id years, we bare intimated that r are Willing to negotiate for a coniimi-wcf the account, if terms can be sa’isfactorily arranged. The Directors have given much consideration to this subject, and in the i course they have adopted arc assured they i best conserve the interests of shareholders, i IMernng now to the figures in the report • and balance-sheet, shareholders will I am sure, be pleased to find that, notwithstanding the largely-increased amount, of capital which dividend has to he paid, the pro-

fits of the last year admit of the usual di- ! videud and bonus, and we are aide toearrv forward to next half-year the sum of £5891) Gs 5, after erelitinjr reserve account with £18.1,000 —the premaim on the issue of the new shares, as far as these have been floated. Ihe anticipation of a reduction in dividend has had a depressing influence on the prices of shares, l>ut the Directors are glad to assure shareholders that although the net profit shows a diminution on the previous half-year) owing to the increased provision which the present condition of the Colony makes it expedient to put aside lor possible losses, the usual dividend and bonus is confidently expected to be maintained Toe untoward state of the Colony during the past six months, and the fact that during that portion of the year business is always less active than during the wool and grain season, will sufficiently account fir the diminution which appears in some of the items in the balance-sheet. There has been a reduction in the note issue of about £OO,OOO, and of over £BOO,OOO in hills payable in circulation, which, although resultmg in lessened profit, mav he accepted as the best evidence of the measures adopted by importers to reduce their too heavy stocks. There has boon a reduction in current accounts of a little over a million, which is largely due to fluctuations in Government balances, the remainder being the natural outcome of the general depression caused by ha I harvests, low prices and reclamations on consignments of wool and grain The condition of the Home market having been favourable for the realisation of securities, advantage was taken of the opportunity to realise the bulk of the Government bonds held by us at last balancing period, and the proceeds have been temporarily utilised in strengthening our coin and cash balances at bankers’, pending a favourable opportunity for re investment. Our coin in the Colony at date of balance amounted to about L 900.0 ‘O, and at the Bank of England LI, 100.000. Our lessened liability in London accounts for the diminished amount of hills receivable and securities held there. The contraction of our advance, it will be seen, approaches the decrease in our current account, to which I have already referred, and is in a great me.sure the eff-ct of largely-diminished purchase of bills in London drawn on the Colonies-another evidence of the wholesome and timely check given to a previously too-extended importation. Shareholders will have reason to he gratified at the large addition proposed to be made to our reserve fund, which will now stand at L 550.090, and to which it will he the policy of the Board to continue to make such additions from time to time as onr profits may wa rant. Every addition to this fund not Only increases the intrinsic value of your s arts, hut increases the dividend earning power of the Bank We have been asked from time to time whether there is any special investment of this fund. 1 need hardly tell you that there is no uniformity in the practice of Banks on this subject, lint the majority follow the course we have adopt' d of making no special investment of the reserve fund. Practically, although it swells the general dividend earning power of the Bank, we usually hold Government securities to a larger amount than the reserve fund, and, though at present this is not the case, the deficiency is more than represented by the largely increased amount of coin and cash at bankers’. I as-ume that the real pnrpoitof the question is, does the Hank hold such reserves, or immediately , convertible securities, as afford reasonable protection in all contingencies ? and [ think | no one will doubt this it the balance sheet 1 put before you to-day is examined and understool- Another question has been asked : Does the Bank hj dd any shares in any unlimited company? The answer simply is that it most certainly docs not. It has also been asked if it is intended to register under the Bank Act which is now being considered in England, but as our liability is already limited under an Act of incorporation, and we have no informa: ion as yet of the provisions of the proposed Bill, no consideration has been given to the subject. It remains for me only to close these remirks, and I may be permitted, in retiring in ordinary rotation as one of your Directors, and consequently vacating" the Prosi ient’s chair, to embrace the present opportunity to exoress the conviction I entertain, that the severe check which the Colony has sustained during the past year will be attended with the most beneficial results to Iho community generally, ns tending to lessen the over-speculative spirit which previously existed, and to le d all engaged in business to confine their perat.ions within more legitimate limits. We have in the Colony of New Zealand every element which leads to and secures prosperity. Climate alone would ensure its future greatness, for we know by statistical proof that no country in the world has greater agricultural and pastoral capabilities. And it is the Colony upon which both the capitalist and the labourer in the Mother Country now look with longing eyes as the refuge where to find a new field of enterprise and create a new home. With the progress of the Co': nr, which nothing I feel assured can retard, will also progress this institution ; and should y-m at a future time again do me the honour of electing me a seat at your Board, I have no misgivings hut I shall then find this Bank still maintaining, under my sued ssor, the position of precedence wh oh, I am proud to say, it. held when it devolved upon me to occupy tliis chair, and which it s ill holds on my retiring from it. .1 now beg to move “The adoption ot the report and balance-sheet.”

Mr J C. Firth, in seconding the motion, said : There is the less reason for my offering to the shareholders any lengthened observations as the very full address of the President will have already made you acquainted with a great many of the condi Mona which have affected this in»timtion luring the past six months. I can only confirm generally the statement ho has made as to the prospects of the Colony. From every quarter we receive inform if ion that owing to this most genial season through which we are now passing, the crops all over the Colony never looked better and never gave greater promise of a most abundant harvest. In regard to the clip of wool, there is every promise of a greater yield than for years past, and it is th‘ general opinion of those moat capable of giving an opinion that the prospects of the Colony, from an agricultural and pastoral point of view, were never hotter. We have all seen anticipating for a considerable period a revival of trade, notwithstanding the low prices that, have prevailed in respect to the production of Colonial wod. There is a little donbf, so far as wool is concerned. a revilal of trade mi dir have been expected to take place in the Old Country hj id it not been f„r the nonsn.it had liarves 3 that have afflicted Fu.dand. But th" cycle of had harvests may be expected to have approached a termination. We mar, I think, look forward, lonki >g to the history of the past, for a revival ■ f rrade at no distant date. At anv rate, there is likely to accrue to the Colony an advantage, ari'sin r from the roc--fit depression through which England has passed, and is still passing, which will lie fomi 1 in the enignti m from the Mother Country to this and other Colonies—an eimgratim which is like y to embrace an ext remedy valuable co t of unionists— I refer to -.English farmers -v*i

their labourers. I may state that there is now on its was a deputation from Lincolnshire farmers, the denutation representing, perhaps, 4do or 500 farmers and their families, who are sent out to this Colony to inspect its capabilities and to report thereon with as little delay as possible. Should the report of the deputation he favourable—as there is little doubt that it will he—it is probable that a large number of farmers from what may be called the “garden of England” will soon anive in thel'olony. All those emigrants to this country, having money in their pockets, and skill and knowledge to employ their capital to the greatest advantage for themselves and for the whole community, will be so valuable an accession to our p .pulalatior. that it is not necessary for mo to say more on the subject. Another advantage which the Colony will obtain, as it appears to me, from the recent temporary depression, will be the information that will suggest greater economy and greater caution on all sides, as cmi pared with the periods of good times and good trade, in conducting alike the individual and general affairs of the Colony. I cannot but think that these two elemen’s—better information and the practice of economy—will he attended with the happiest results in the future wl" n good times return. 1 have to congratulate you upon the favourable report that has been laid before you, considering the extreme difficulties connected with banking business during the last half-year. I hope that we a'e on the eve of better times, and teat this Bank will continue to occupy the high position is has hitherto held ;—(Hear, hear.) The motion for the adoption of the report and balance-sheet was put Loin the chair and carried unanimously.