The Evening Star WEDNESDAY, OCTOBER 24, 1888.

Evening Star, Issue 7751, 24 October 1888, Page 2

The Evening Star WEDNESDAY, OCTOBER 24, 1888.

We published yesterday a full report of the proceedings at the NewzEul half-yearly meeting of shareholders of the Bank of New Zealand, held in Auckland on the 22nd inst. The Bank have passed through a trying ordeal in the thorough investigation of their affairs by a committee of shareholders, and tho crucial remedies suggested by that committee and carried out with the view of complete rehabilitation. The course adopted was much to be commended. The difficulties of the position were fairly faced, and demonstrated to be of such a temporary character that the credit of the Bank, although a material loss was admitted, was unshaken in the highest financial circles, and general confidence maintained. We .do not care, nor do we consider it altogether within our province, to discuss the causes which led to the state of things disclosed by the Committee. Very serious issues are presumably involved in connection with the former administration. The public are chiefly concerned, according to our view, with the fact that the institution is sound financially, and promises excellently well for the future, in the better times, of which there are palpable signs everywhere. The report submitted by the directors on Monday is in every respect reassuring, and, in statement and recommendation, affords proof positive of the good judgment and ability of the present Board. The chairman, in .explaining how the Bank had fared under the experiences of the last twelve months, pointed out that "an all-im- " portant feature in the balance-sheet "is the cash resources it is known to " command." On the whole, he stated, •less business has been done and a larger cash reserve maintained a policy imposed, 'he said, by a prudent regard to existing conditions. The satisfactory .result, however, is a net amount of profit which enables a dividend to be declared at the rate of 7 per cent, per annum, whilst & substantial sum is added to the reserve fund. A higher dividend, the chairman says, might have been declared., but ',' it " must be borne in mind that we are "yet in the convalescent state and "will do well to go soberly"—a determination which evidences remarkable goad sense. The credit of the Bank may fee expected now to stand higher than evev, whilst there is good reason to think that ,the scope of legitimate business will be extended. The additional capital is now certain to be readily provided, and the declaration of the dividend give buoyancy to the shares of all issues. It is gratifying to hear from so high an authority as the Chairman $ the Board of Directors that "better times and brisker trade" are already in evidence. He notes the more active settlement.on public lands than there has been for years past ; the increasing inquiry for property; sales at encouraging prices; and the general improvement in the state of the colony.