BANK OF SEW ZEALAND

Evening Star, Issue 14534, 9 December 1910, Page 6

BANK OF SEW ZEALAND

HALF-YE&EEY JTEHOISra. THE PRESIDENTS ADDRESS. [Pee United Pkess AssoclshoxJ WELLINGTON, December's. Tho half-yearly meeting of tho Bank of Now Zealand was held' to-day. Mr 11. Beaucliamp, chairman of directors,, who presided, said: Gentlemen,—At tho December meeting of the Bank our business, as most of you are aware, is confined to tho election of a director and the declaration of an interim dividend. In respect to the former, I liavo to announce that tht- only candidate is Mr William Watfon. and that gentleman having i-.iven the necessary notice, I have much pleasure in declaring him to be duly elected. Mr Watson has occupied a seat on the Board for sixteen vears.—namely, since I£9l * Witlj regatd to our profits for the halfyear, ended 30th September, these we.ro unfavorably allotted by diminution in earning power through the substantial reduction in advances to customers in Mow Zealand. This reduction will not surprise you when you consider the large surplus of Exports over imports (to which 1 sliall refer liter cinl for the year ended September, 1910. Si-ill, our profile on the whole have heen verv witisfa/jtojy, and tile- net result, is considerably k-Ue.r. compare-di with the corresponding' period in 1909. Such being tho ease, we feel justified in declaring an interim dividend of 6 per cent, ior the past h,d.'-year, payable on the ordinary chares, ■and <m the preference shares he!<J by the 1 drown. Si proiilo are maintained land I see no reason why they should not be), I am hopeful that'the opinion I expressed when 1 had the pleasure of addressing you in .lime last, as to the return you are likely to get at the close of the cm rent financial vear. will he realised.

Our genoial manager. -Mr, William Callcnder. retained to headquarters on tho 'li.Ji ultimo. When in Umdon. he made a !borough inspection of our blanch in that Oi'.v. and. i am glad to say, was able to report most fiatid'a'dorilv as to the character of I lie businiss transacted by us at that point. We- are satisfied that the experience ./.lined by Mr Callander in linden will prove of" much advantage 10 him and to the liauk. During 11 r Lallender's absence, the dulicr. of 'general manager were discharged by Mr A. K. Mills, the senior ii'spco.lor. to the entire satisfaction of the Board. Al't.ir .serving Ihe Kink ably for, fortytvro yeais, Mr' .lanus Baxter has recently resigned his position as manager in London,'and -Mr Alexander Kay (in whom theBoard have every lonCdenoe) lias been appointed to smce'd him. We have fittingly recognised and placed on neon] our preciation of the bniu- and faithful .services rendered by Mr Baxter. To strengthen tho stall' in' London, the Board decided to appoint an aesifilanf manager, and it was considered that it would be io tho Banks advantage to have in London an officer with colonial experii-n.ee and conversant with the conditions obtaining in the Dominion : .effect has been given to this derision. With these preliminary remarks 1 may be permitted to refer brief!v to the monetary and (ommercial conditions as they appear to me. A year ago J was able to congratulate shareholders and the country generally 011 the vastly improved proi-pcet-s, ;md J am pleased, on this occasion, to be in a- position to reiterate those congratulations and to emphasife them. The banks to-day are flush of loanable credit, as is shown by the marked expansion of the fixed and free deposit*- and the very iiisi'.'iiifieant increase in the advances and din-omits. Tho figures of the a-vera! b.i-nki-. for the Sep tern be;- quarter compare a.5 under : Fixed and Free Doncsits. iniO. 1900. Bank. £ £ Vow Zealand -. jl.OoUlo 10,199,023 Unioc- . ... 7j.221.51X 2,790.839

New South Wales 3.536.191 3.009,416 Australasia ... 2.005.910 1.736.224 National -. ... 3.529,321. 3,243,563 £23,144,540 £20.979,120 (Xo(e-.—Throe figures do not include Government deposits.) Advances and Discounts. 13a n k. £ £ New Zealand ... 6.965,691 7.091,411 Union 5,222.958 3,K:0.610 New South Wales 2.516.493 2.5C5.193 Australasia ._ 2.794,888 2,756.505 National ~. 2,676,566 2.657,188 £18.177,596 £18,170,707 Thus, while the deposit have increased by £2.165,229, the advances and discounts show the trifling increase of £6,839. It .may he urged that the banks have been too particular about (securities and could have made larger advances wrs they less punctilious. This is not true. Every legitimate demand <>n (he banks lias been promptly met. and no one. with a reasonable banking security has been refused an advance.' Unfortunately, there is still a lack- of industrial enterprise, and money is permitted to lie idle in the banks—or" to put it another way, poop! • arc throwing upon file hanks the ivsjKmsibility of finding an investment outlet instead of undertaking it themselves. The Outlook--The trade revival which (••et, in about twelve months ago appears, to be fairly general. A White Paper i-sued bv t !io Hoard of Trade gives comparisons of lbe exports and imports of the principal countries for the first six months of 1910. wlr-.'h show a substantial increase all round. Taking the hgures of a lew touii'.ncs. wo obtain the i'ol'owing : Imports. 1910. 1909. 0 £ United Kingdom 279.1'-:! .000 205.099.000 Cermanv ". 209.512.00) 204,763.000 United Stales of America ] 66.72UDC" 1-J9.583.000

Oanadi. 47j.21P.i-).)') 33.i58.C00 British India ... 40.]f.9.iVj'1 S7.olB.00:) Japan ■ 21159.0C0 21 ; 045.C00 British South Africa 17,840.000 12.967,000 Australia ... ~., 26,703.000 23,255,000 Exports. United Kingdom 201,586.000 176,931000 Germany '. 17-1.077,000 139.433,000 j United Status of > America.. ... 165.349X00 161.393,000 Canada ... .„ 23.792,000 20.010.000 < British. India ... 77.820.000 57.543,000 Japan 21,346.000 18.950,000 British South Africa 27.219.000 23.742,000 Australia. - ■ 53.895.000 29,458,000 The trade of New Zealand has .'!•!«> expanded. The iLmres for the yonrended September 30 l.nwti (fnii]w« with those of the three previores years as under (specie is omitted in each cats) : Exports--. Imports. Year. £ £ 1906/7 ... , . 19.891.516 16,071,837 1907/8 ... ... 16,370,587 17,750,863 1903/0 _. ... 18.700.156 14,916.005 1909/10 ... :-, 21,953,964 16,101,886 Tim excess of exports over imports for tin:. past year amounts to the laive .sum of £3.<; c,(,Q r itt. which will account for the of depfjfiiltj in the bunks and the beovancy of tlio Treasury returns. '1 he expansion in uade necessarily calls for con.sidera.blo capital, and tho records of the year chow that extensive demands have been made upon the British investor. For the nine months ended September 30. the new capital raised in Gje-at Britain amounted to £216.755,300. as compare*] with £148,763.0*0 for the cfliresponcEng jjcriod of 1909, .and £141,215,500 in the nine months of 1908. Tlio destination of the new capital compares as under: — 1910. 1909. £ £ United Kingdom 54,845.500 16,277.500 Britain Possessions 69,321,600 64,767,100 Foreign Countries 92.588,200 67,723,400 £216,755,300 £148,768,000 During the part nine montlis Canada- obtained £31,833,900 and Australasia only £7,359:000. In nine months Canada, the United States. Argentine, and Brazil Lave #meti over £90,000,000 from tho Biitifih

Ursestor, and the futore demands -of fbxmt. cxjmrfcries-aro likely to be as large a3 war.?; It is generally considered by those cmn-A petenfc to express an opinion that the keen \ demand for capital must, in the- near future, / cause tho rates for money to harden, and ■ already we see factors at work to bring about this result. Tile fall in Gawds to j £7B 15s, yielding the investor about £3 3s 6d per cent-, may be in .part attributed to J tho political outlook; but, taken _in con- . junction with the fact that other gDt-edged., securities have declined, it shews that in- } vestors expect a higher rate of interest { than formerly. Borrowing in th& London ;\ market, except at higher rates, will, I fear, be a difficult operation, l.i particular local j bodies, with commitments, may find £hi&»a.-i' troublesome matter. f Tho out!.";!; for our primary products "Is j not perha 1 tjuito as good as it was this > time a year ago. Still, it is by no,means -\ unfavorable. j Wool is lower than it was a few* months.. \ ago, and the main reason for this decline 1,/ appears to bo the absence of American com-..* petition. On 23rd nit. our London Office/ telegraphed us- as follows : The sales have opened with strong com-: petition and largo attendance of buyen*. : There if? a good demand for all kinds-of * wool. Prices arc unchanged. _', The high cost of living in the United '.< States has checked business in many direo- \ tions, but a Tecent cable message .13 more. 1 reasoning:— \ Bumper corn crops and heavy receipts ' J of cattle and hogs at the stockyards have ; caused, a decline of foodstuffs throughout ' the United States. This will probably result in. increased at>-' •■ ' tivity, and wool is bound, sooner or later, \ ' io ho favorably affectod by tho demands ■ ■ of America. '; Another advice from, a New respondent reads:—. Politics, crops, and the money marie?' all look lwtter. Wall Street's fears that the corporations will be lianshJy dealt ' with by Government are diminishing..A large maize crop is practically assured, and there is little dancer of airy serious money squeeze if speculation can. bokont down. It may not be generally known what a gigantic barrio.- is erected against the importation of wool (raw and manufactured) into the United States of America. For the year ended 30th June, 1910, when the imports under this head amounted in value to approximately £14,000,000, tho ad valorem late of duty equalled 59-23 per cent,, as against 65.18 per cent, in 1309, A writer in the 'Economist,' referring to this matter, says : Tho woollen, tariff is no doubt tho most cruel and criminal of all tho schedules, because it means that in the j*frightfully severe winters of the Nar- [| tliern States the poorest class of laborers tt are clothed entirely in wretched, shoddy, 8 and many even of the well-to-do have to § put up with cotton blankete. Some cal- jeula.tions liavo been made of the high t rate of mortality caused in the 'winter ]

months by tliis want of warm clothing". 'The Democrats are making (as they have been for many yeais past) strenuous efibTts to obtain a .substantial reduction in this impost. It' they are snccessfuL, I need not paint out what an important bearing it would have upon our trade relations mth. J the United States. Butter has not quite responded to ihe ! sanguine opinions held by those in. the ! trade, yet prices realised by producers i leave a handsome profit. This industry is j continuing to expand most satisfactorilyj Frozen meat has maintained a good marI kef. but in view of the increase in Ameri- ', can and Australian supplies it is a question i v.-hether this market will bold at its pre- ! sunt comparatively high JeveL In this j connection, it is interesting and instructive I to note the strong and persistent agitation for cheaper meat now prevailing on the ! Continent of Europe, particularly in AusI tria. It is to be hoped that this may xiltij mately be the mams of enabling us to find i additional and profitable markets for that : article. Already one or two small shipi ments of frozen mutton and lamb have ! been admitted info Austria ami sold at j 1. igh prices. j Taking a comprehensive view of Che j outlook, I tliink New Zealand will have a prosperous Now Year, and it is to be j hoped that that prosperity will not result I in a. condition of value-inflation and ex- ! t ravagn.neo in general. Rather may tx& ! hope th.it endeavors will be made during < oood times to establish enterprises and : build up industries. Concluding;, 1 have to announce ihafc the interim dividend will be payable to shareholders in Wellington on Monday next, 12th instant, and at branch.es on receipt of advice. In moving a vote of thanks to the chairman of directors and staff, Mx Marian Kennedy said that a 15 per cent, dividend was in sijdit. They were often told that i when that, iigtrro was approached shapoI holders would not bo satisfied. It would j not do to bold out hopes to shareholders i that an increase would bo made beyond i that ligure—at least, for a long time to ! come. Personally, l>oforo ho would seek ! far an increase beyond 15 per cent., he i would have the reserves strengthened to such an extent that no exception could bo i taken. 1 The vole of thanks was passed, and sh<' j meeting finished.