The Hastings Standard Published Daily. WEDNESDAY, JUNE 24, 1896. THE BANK OF NEW ZEALAND.

Hastings Standard, Issue 50, 24 June 1896, Page 2

The Hastings Standard Published Daily.

WEDNESDAY, JUNE 24, 1896. THE BANK OF NEW ZEALAND.

For the cause that lacks assistance. For the wrongs that need resistance, For the future in the distance. And the good that we can do.

The balance-sheet of the Bank of NewZealand presented to Parliament last week is an important document, but the details given are not as explicit or as copious as are warranted by the importance of the document. The interest of the colony in the institution is shown at £2,500,000 capital, while the shareholders have paid up £17,423 6s 8d; possibly this sum has been increased by further payments as the first instalment of the call made imperative by the Act of last year is payable on the 30th instant. The bank has become possessed of a Reserve Fund amounting to £20,418 Is by the disposal of

the debentures issued by the Government in payment for the preferred shares. The deposits on the 31st March, 1896, amounted to £9,89-1,778 13s 7d, while " other liabilities" are set down at £608,912 6s 4d. -The term " other liabilities" is too indefinite and may mean anything. The nature of the liabilities should be clearly set out. The total liabilities of the bank are set down at £14,280,993 lis Gd. The assets show the amount of cash and bullion to be £1,716,706 12s Id. the investments are set down at £1,069,189 Is Bd, made up as follows : Imperial Consols, £54,868 16s ; Government securities, £627,431 Os 9d ; Municipal securities, £8,827 12s Gd, and " other securities " £378,06112s 3d. Here again we are confronted with an indefinite term. The nature of these securities should be specified, and the country has a right to know what they consist of. We know by the evidence given in the Court at Dunedin that the Bank of New Zealand holds £20,000 of debentures of the J. G. Ward Association, and it would be interesting to know* whether " Other securities " includes any more such questionable securities. Another item that requires explanation is what is meant by " Other advances, securities, and debts," which figures in the balance-sheet at £7,282,.'525 17s lOd. The securities and debts are probably the Colonial I'ank rubbish, but whether they arc: such or not, the country will want to have more details. The value of the shares held in the Estates Company is returned at €1,0<59,822 17s 7d, which is book value. The goodwill paid the Colonial Bank is very properly set down as an assetjat €75,000, which was the amount paid. This is an asset that must be wiped out in course of time, so that it is practically a burden on the annual profits. The total of the assets amount to €11,333,509 13s 7d, so that the profit for the year is €52,576 2s Id. The profit, however, is reduced by deducting the loss of last year, which amounted to £383 lis Id, leaving a nett profit for the year at £52,192 lis. Under the Act of last year £50,000 must be paid to the Assets Realisation I>oard, leaving a balance of €2,192 lis, a portion of which must be utilised in paying 5 per cent interest on the amount paid in advance by the shareholders. The balance-sheet is subject to the Colonial Treasurer's approval to certain adjustments with the Estates Company and the Assets Realisation Board, and as Mr Seddon is now the Colonial Treasurer, he occupies a singular position. As Colonial Treasurer he must approve of certain adjustments which as a member of the Assets Realisation Board he has probably authorised. The approval of the Colonial Treasurer is therefore a farce.