BANK OF NEW ZEALAND

Greymouth Evening Star, 3 December 1926, Page 3

BANK OF NEW ZEALAND

HALF YEARLY MEETING WELLINGTON, Dec. 3. The half-yearly General Meeting of the Bank of New Zealand was held to-day, Sir George Elliot (Chairman of Directors) presiding. The Chairman said: —To-day brings to an end the half-yearly meetings that have been held annually in December since the Head Office of the Bank was transferred from London to Wellington. Beyond being the occasion of the election of Directors and the declaration of a dividend, it is difficult to find any other reason for their institution.

There are as usual, no accounts to lay before you, but the profits earned for the half-year ended September last warrant the payment of dividends similar to those paid for the corresponding period last year. Since the Annual Meeting in June, there has been little change in the prices of the Dominion’s prim,ary products, with the exception of butter and cheese. After a slight lowering of prices earlier in the year, the London September/October Wool Sales closed very firm with active competition, and values, compared with those of June last, were about id. per lb. better all round. The heavy purchases by German operators bear out the cabled reports as to the active state of the woollen industry in Germany, and of the overtime that is being worked in many of the mills there. The coal strike has, naturally, had a depressing effect on the British Textile industry, but, notwithstanding this, taking it all round, the tendency has been, during the last six months, for prices for wool to harden slightly. The fact that practically the whole of the Australian and New Zealand clips for 1925 had been sold and disposed of, together with the half-mil-lion bales carried over from the previous season, accounts, no 1 doubt, for the present steadiness of the wool market, and augurs favourably for the coming season. In view of the fact that there are practically no stocks carried over or held up either in Australia or New Zealand, there is every reason to believe that, the coal strike having been settled in England, the present prices of all classes of wool should be maintained for some time to come.

■ Prices for meat, except for slight variations, have remained steady •throughout the period under review. The number of sheep in the Dominion in 1925 was 24,547,955, compared with 23,775,776 in 1924, and a further increase is expected this year. Without a doubt, the industrial unrest in the United Kingdom accounts for the decided fall in the value of Dairy products. Under the circumstances, the supply of butter and cheese has greatly exceeded the demand. An appreciable quantity of butter from a number of dairy factories was held up in the hope that the market would improve. This hope has, unfortunately, not been realised, with the result that deteriorating stocks are blocking the gangway of the new season's output just arriving in London. The holding up of a perishable article involves a serious risk, and the New Zealand producer cannot afford such gambling on the market. What a speculator may do under given circumstances does not affect . the principle; in general, the wisest course for <i Dairy Company to pursue is to sell and keep on selling. Since the formation of the Dairy Control Board, there has been far too much talk of “control,” and this idea of “control” is hindering, not helping, at the present moment. “Control” has been tried many times and in many countries since those far-off days with with very little success. There is no doubt whatever that the members of the Dairy Control Board are animated by the very highest motives, and are honestly trying to improve the conditions of the trade. There is no doubt, also, that the Board was set up by Parliament at the request of the majority of dairy farmers themselves, but there is always a grave danger that the members elected to the Board may not possess the training or knowledge necessary for the running of a great business undertaking, and before they realise that they do not know as much as they ought to know, the affair they are managing niay get into exceedingly deep water. As the chief problems of the Meat Control Board and the Dairy Control Board are identical, the merging of the two into one would result, not only in a great reduction in expenditure, but would make for greater efficiency, especially if the number of the members on the combined Board were reduced considerably,—say to a total of five, —two representatives from industry, with a chairman appointed by the Government. I am certain that one small well-selected Board could manage the business now carried on by the two Boards much more advantageously from every point of view. As compared with the previous year, apart from the Government deposits, the total average deposits of all the 'Banks trading in New Zealand for the three months ended September last have decreased by £1,770,571, while advances have increased by £3,127,375, making a total reduction in the resources of the Banks of £4,897,946. This position is brought about entirely by excess of imports over exports. May I remind you that practically the whole of our exportable surplus is shipped to the United Kingdom, and it is within the range of possibility that in the ye'ars to come the demand for our products there may gradually decrease. World conditions are changing. The tendency amongst the Nations —not excluding the British Overseas Dependencies—is to heighten theii' customs barriers in order to encourage their manufacturing industries, and, as a consequence, British trade must suffer. However much she may dislike the idea, Great Britain may yet be compelled, for the protection of her own people, to change her policy and follow the pernicious example that is being set her, and, by the imposition of heavy protective duties, close a market that has been open and free to the products of every race and Nation. Canada for the Canadians, Australia for the Australians, New Zealand for the New Zealanders, are popular if selfish, mottos. If Great Britain adopted the same slogan and acted on it, the export trade of New Zealand, at any rate, might be prejudically affected. Our country cannot have it both ways; she cannot expect indefinitely to have a free market in the Old Country if her own Customs door is gradually being closed. In the event of a revision of the New Zealand Customs Tariff, this aspect of a very serious question should receive the most careful consideration.