NATIONAL BANK OF NEW ZEALAND (LIMITED).

Grey River Argus, Volume XXXI, Issue 5252, 25 July 1885, Page 2

NATIONAL BANK OF NEW ZEALAND (LIMITED).

« [Fr^m New Zealand Herald, July 17.] A cable message announces that the balance-sheet of the National Bank of New Zealand (Limited) shows the doubtful debts to be £131,000, and to meet possible contingencies on this account the shareholders have agreed, at the annual meeting held on the 14th inst., to transfer £100,000 from capital account, and £10,000 from the reserve fund. This has been generally known in banking and commercial circles 1 for the past'week, and the directors and management have been commended for having the courage to face the difficulty and get rid of it once and for all. It must be borne in mind that the amount now transferred is not altogether lost, as it is represented by large securities in the colony, which have shrunk in value owing to the long and continued depression in the South Island. With a revival in trade and commercial pursuits, these will soon again prow to their former values. In the early days of all banking institutions unsatisfactory securities are apt to be taken, and the best policy is as soon as possible to write them off as

doubtful assets, and thus place the insti- 1 tutions in a sound business condition. This : course was taken in Australia some time ago by the Colonial Bank of Australasia and Commercial Bank of Australia, Limited, and, though it caused temporary cessation in dividends to the shareholders,; the wisdpnvof-' the step was soon shown by increased business and a decided advance in the i shares. ißoth these Banks are now in strong positions, with* large accumulated reserves, and such will ,w> doubt: not, soon be the; result in the instance of the National Bank; The Bank being cleared of old-standing impedi,mehts will be more 'firmly established in the estimation iof- : the r - Proprietary and its Constituents, all of whom we feel assured will ' join -with us -in iour approval of the wise course adopted at the annual meeting, of the -shareholders. ; The telegram conveying the substance of the message.receivedifrom London by the InspSctor ofi the Bank, and which appears in this issue, supplies important information respecting the effect of the decision adopted at the .annual meeting of shareholders. It will also be gratifying to those shareholders resident in the colony, and will tend to increase their . interest in the operations of , the .Institution, to iknow that Messsrs Edward Pearce, of Wellingington,:and James Rattray, of Dunedin, gentlemen of acknowledged colonial reputation and business experience^ have been appointed Directors of the Bank.