LOAN AND MERCANTILE

Evening Post, Volume CIII, Issue 31, 7 February 1922, Page 8

LOAN AND MERCANTILE

ADVERSE CONDITIONS,

Mr. Warrington. Laing, chairman of the New Zealand Loan .and Mercantile Company, at the annual meeting of the company in. London, remarked that the chief features which so adversely affected the accounts this year were the great reduction in the amount of commissions received, consequent on the falling off in trade, and the diminished volume and lower value of commodities handled by the company < on;account of its clients; and, secondly, the great fall in the value of stocks of merchandise held by the company and consequent loss in realisation, and in writing down the values of stock. The most important feature, however, was that they had had to deal in the account with large provisions asked for by -Mr. D. M. Morgan, Chief Inspector for New Zealand, on account of depreciation of securities against advances made in the Dominion. It had been the custom if the company to hold for the convenience of its clients at its different branches stock of merchandise. This had proved a profitable branch of the company's business. At the date of the last annual accounts, stocks in hand were heavy, caused by irregular deliveries through the uncertainty of. shipping facilities. The general collapse in business caused an. accumulation of stocks in the hands of, different merchants, and in consequence a _ very heavy fall in values. In anticipation of this last year, certain specific reserves were made, but in addition to these.further losses* hud occurred in realisation and in writing down the value of stocks on hand to bedrock .fifure.