BANK OF NEW ZEALAND.

Gisborne Times, Volume VI, Issue 183, 10 August 1901, Page 3

BANK OF NEW ZEALAND.

GENERAL MEETING.

By Telegraph—Press Association.

Wellington, last night. The general meeting of the Bank of New Zealand was held to-day. The Chairman of Directors (Mr Blair) in moving the adoption of the report, said that the capital was now £2,421,800, as against £2,919,519 last year. The decrease was caused b}' the purchase of preferred shares to the amount of £500,000 from the Government, which enabled the Bank to make a large saving in interest. The deposits were £8,682,504, an increase of £94,645. Bills payable and outstanding showed an increase of £299,682 in liabilities, which was chiefly accounted for by Government transactions. Bills in discount, £274,936, was a detail of London finance. During the past twelve months London had been a profitable field for investment of money at short dates, and the London m'anagement had taken advantage of the position. The business was first-class, although necessitating the rediscounting of bills held. It would be seen from the credit side that the bank maintained a very strong position. The amount of the balance was £1,054,129, an increase of £156,603, while at short call and in securities in London they had decreased slightly, the amounts standing at £2,513,090. Investments in the colony

had increased from £2,385,284 to £2,507,584. The Assets Realisation Board debentures bad been paid oh' during the year to the amount of £125,000. The net increase in investment was £122,300. Bills discounted, £2,008,832, showed an increase of £280,405, and might be taken to indicate considerable business activity on the part of the bank’s customers. Other advances, etc., showed the substantial increase of £149,599. Landed properties, etc., £388,702, had been written down by £34,417, which brought them within the valuation. Furniture had been written down £3,887. The amount of the Bank of New Zealand Estates Company’s assets was £71,000 less than last year. Lt was unlikely there would be any considerable sum required to provide for shortages in the realisation of the remaining properties. Profit and loss account showed a very marked and continued improvement. The profits available for appropriation increased from £145,020 in 1900, to £210,605 in 1901. The appropriation for the present year was as follows:—Written off Bank of New Zealand Estates Company (in liquidation) £17,000, debentures conversion account £35,300, Colonial Bank goodwill account £60,000 ; Colonial Bank property and premises £IO,OOO ; Bank of New Zealand property, premises, and furniture £38,305, statutory payment to assets realisation £50,000.

lt was, said the Charnmn, beyond his power to forecast the future of the colony, or the earning power of the Bank. The past few years had been wonderfully free from bad debts. They had] undoubtedly been favored by great prosperity, and ho took u very hopeful view of the future. Mr Martin Kennedy, in seconding the adoption of the report, said that without the consent of the Government directors could not declare a dividend, hut if the business progressed as it had progressed during the past year he thought the directors would ho able to show the Goverument that they would be justified in declaring a dividend next year. The motion was adopted, and the meeting concluded with the customary votes of thanks.

FULLER REPORT OF CHAIRMAN’S REMARKS. REFERENCE TO GISBORNE LANDS AN AID TO PROSPERITY.

(By Telegraph—Press Association.)

Wellington, last night. Lathi:. — In moving the adoption of the Bank of New Zealand balance-sheet today, the Chairman added that without desiring in any way to appear to think they wore not to have a prosperous time, most jfrudcnt men would consider that the business of such an institution as a bank should be conducted with a view to any such contingency arising. When approached on the question of the prosperity or depression of the colony wo were biassed by conditions that did not exist in this colony, such as the convulsions of business that had occurred in older countries. We had a particularly now world to be developed. When it was considered in connection with what had been done and what remained to be done 1# there was no risk of a similar depression to that which older countries had suffered. Look at the resources of the country. In Gisborne, for instance, there wore immense areas of undeveloped land which, when opened up, would go a long way towards securing prosperity, not only of the bank, but of the country as well. There were, again, large tracts of land held by natives on the boundary of Mokau, so far absolutely untouched. When those things were before them people should tako heart. There was an indication, too, that outsido the colony there were those interested in it to the highest degree who absolutely believed in the colony’s progress. In illustration of this lie referred to the recent additions to tlects of the New Zealand and Shaw-Savill Shipping Companies. Those controlling those interests would not embark upon such an enterprise unless they had confidence in the colony. The vigor and adaptability of the people of New Zealand would carry them further than those in any other part of the world. He was sure they could look forward to carrying the business of the bank to a successful termination, especially if the same amount of interest continued to be manifested in the bank's affairs as had been manifested in the past. Mr Martin Kennedy, in seconding the resolution, said the control of the Government was supreme, and without the Government's consent the directors could not declare a dividend. The Premier might have assumed the attitude he had taken towards a dividend on insufficient information, and if the business of the Bank progressed during the coming year as it had progressed during the past year, he thought the directors would be able to show the Government that they would be justified in declaring a dividend next year. It was only just to shareholders that a dividend should be looked forward to as a possibility in the near future. Mr C. T. Richardson thought they ought to protest against the imputation made that the shareholders were clamoring for a dividend before paying their liabilities. They were not responsible for raising the value of shares. Shareholders had suffered a great deal in the past, and now that things were looking a bit better they were entitled to some consideration and sympathy. The Chairman said he had not referred to the question of a dividend, for the reason that it did not arise until next year. The whole question would be dealt with at the proper time. What he had said on the subject last year still held - good. The motion 'for the adoption of the balance-sheet was then put and adopted.