THE A.M.P.

Evening Post, Volume CXI, Issue 91, 18 April 1931, Page 12

THE A.M.P.

SOCIETY'S POLICY

"ABSOLUTE STABILITY"

Mr.. X.. A. Holmes, delegate from the New Zealand Board of Directors of the Australian Mutual Provident Society, in supporting the 'motion for the adoption of the balance-sheet, offered his congratulations upon the results achieved by the society during the year in the face of extremely adverse1 conditions. "The results " lie continued, "can only be interpreted as a fresh proof of the recognition by the public that life assurance in a society of such impregnability as ours constitutes the soundest of all investments. In view of the continued uncertainty of the economic situation, I feel sure our members will readily accept -whatever small temporary reduction there may bo in their bonuses as the very best evidence they can have •of the determination of the directors to maintain the absolute stability of the society against any possible contingency—a policy which must meet with the complete approbation ot every-member. ■ It is astonishing, indeed, that after' making additional reserves on so stringent a basis for the protection ot the policy holders, the directors have found it possible to distribute over £3,000,----000 in cash to provide reversionary bonuses which will be very little below those allotted the previous year. As regards our business in New Zealand, I may say, in the first place, that it is very gratifying to be able to report that in spite of the prevailing depression the total new business written for the year-reached nearly £4,000,000. ' I think that, in the circumstances, this result is a high tribute to the energy of our Field Staff, and another proof of the prestige which, in spite of., the very keen competition, our society continues to enjoy. The society's investments in New Zealand have necessarily received and arc receiving the closest attention of the Local Board and of the executive, and I am "lad to say that they are standing the test of these troublous times satisfactorily. The recent disastrous earthquake in the Hawkes Bay district has caused us concern, but;we are' satisfied that whilst leniency and consideration will- have to be extended in some cases to mortgagors, our losses,'if any. are likely'to be inconsiderable. The direct sufferers from the disaster are meeting their reverses with fine courage and energy, and measures for relief in cases of hardship and for the restoration of the. stricken areas are.-now-trader consideration by the Legislature." After making reference to the increased burden of taxation upon Life Assurance Offices, both in Australia and New Zealand, and to the fact that the society now has over £15,000,000 invested in the Dominion, largely in Government municipal loans, Mr. Holmes commented upon the local affairs as follows:— ' . . "As to conditions generally in New Zealand, I may say that we are sharing with Australia the depression resulting from the exceptionally low prices' ruling for all our exports. While our products arc selling at or less than pre-war prices, the cost of production still remains at postwar levels. Fortunately the impossibility of maintaining this position is at last realised, and genuine efforts are.now being made to rectify it and to place matters on a sounder economic basis. As in Australia, too, industry is retarded and development discouraged by burdensome taxation, due ■ largely, _it is feared,, to excessive borrowing for unproductive public works. There is. however, no question of the soundness of New Zealand, and now that there is general recognition oftho need for a reversion to economic principles, I think we may look to the future with reasonable confidence." (Published by Arrangement.)