BANK OF NEW ZEALAND.

Hawera & Normanby Star, Volume LXXI, Issue LXII, 19 June 1912, Page 5

BANK OF NEW ZEALAND.

ANNUAL MEETING.

The annual meeting of shareholders of the Bank of New Zealand was held at Wellington to-day. The Chairman (Mr Martin Kennedy), in moving the adoption of the report and balance-sheet (which had been distributed some days previously), said:— Ladies and Gentlemen, —-I presume you take the report and balance-sheet as read. I feel sure you will consider them highly satisfactory. lam glad to say that we have had a good year, the pi-ofits being the highest yet earned by the Bank in any year since its commencement in 1.801.

The directors are pleased to he able to recommend tho payTr.erit of a dividend on all the shares of the Bank, amounting to, on the Ordinary shares, 15 per cent, for the year, and on the Preference shares, 10 per cent., the statutory limit.

Turning to the balance-sheet (a copy of which appears on page 4 to-day)— ' Capital.—There is no change in the paid-up capital of the Bank, which remains at £2,000,000. The Reserve Fund. —Last year this fund was increased to £1,000,000 by the addition of £200,000 from profits, and the directors propose to place a similar sum to credit of the fund out of the profits for the year under review, making the total £1,200,000. With the amount proposed to' be carried forward, namely, £40,587, the reserve fund and undivided profits will amount to £1,240.587.

As you will observe, £500,000 of the reserve fund is invested in British Government securities.

Notes in Circulation, which stand at £1,030,966, show an increase of £53,720 as compared with the previous year. Deposits are less by £2,052,878 than the figures of a year ago, the decrease being due to reduction in Government credit balances which, in the last 'bal-ance-sheet, were abnormally high. Ordinary denosits, both fixed and tree, show a satisfactory increase. Bills Payable and Other Liabilities show a comparatively small fluctuation, being less by £71,937 than at March,

Coin. Bullion, Money at Short Call, etc.--You will observe that money at short call, Government and other securities in London stand at £3,316,159. This amount, as compared with the previous year. shows a decrease of £8,394,080. attributable to the reduction previously mentioned in Government balances and to the withdrawal of funds from London to meet the active demand for accommodation in the dominion. Coin and cash balances also show at a lower figure, the amount under this head, plus bullion, being £265.589 less than at March, 191.1, the reduction in liabilities already referred to rendering maintenance of the high cash reserve of last year uncalled for.

I may point out that the totals under this heading, together with the amount of bills receivable and investments in the colonies, are equal to 55 per cent, (or lis in the £) of the total liabilities of the Bank to the public. Bills receivable in London and in transit, stand at £2.406.266, an increase of £111,645 on the figures of the previous year.

Investments in the colonies are less by £72.763 than at March 31, 1911.

Advances.—Bills discounted are greater by £109,439 and other advances by £1,729,633. as compared with the figures of a year ago, and now stand at £1.221.075 and £9,667,748 respectively. During the year there has been a strong demand on the Banks and other financial institutions in the dominion for accommodation, and, although adopting a restrictive policy for some time past, we have, as the figures I have placed before you indicate, responded reasonably to the call. Our present policy is to maintain ourselves in a position to meet the legitimate reouirements of our established connections and of the dominion's industries and trade.

With regard to advances, let me repeat that the greatest care is bestoAved by your directors and the executive officers upon this most important branch of the Bank's business.

Assets Realisation Board Assets.— Totals under this heading noAv amount to £136,356, as against "£216,354 last year. You a\ ill notice that the item "sundry assets unrealised" has disappeared from the balance-sheet, practically all the Assets Realisation Board properties having been disposed of. Landed property and premises, after appropriation now made of £25.000, stand at £420,538. as compared with £423.739 at March 31 last year.

Profit and Loss. —The profits, repre-, senting the work of our Jubilee year, show at £396,182, an increase of £40,911 on the profits of the previous year. After paying the £40,000 interest on guaranteed stock and making all necessary appropriations, including I provision for the Bank's annual grant to the Provident Fund and bonus to the staff, as Avell as allocating the sum of £25,000 in reduction of bank premises and furniture accounts, the net profits for the year amount to £331,182, as compared Avith £295.270 last year. Adding the amount brought forward from last year (£34.405) ami I deducting the amount of interim divi-1 dend at 6 per cent, on Preference and ' Ordinary shares paid in December! , (£60,000), the sum available for distribution is £305,587. The directors noAv propose to pay a further dividend of 6 per cent, and bonus of 3 per cent, on Ordinary shares (making 15 per cent, for the year), and a further 4 per cent. jon Preference shares (making 10 per cent, for the year). The total amount 1 distributed to shareholders will thereI fore_be the same as last year, namely, ! €125,000. Of the balance'remaining, it is proposed to transfer, as already mentioned. £200.000 to the reserve fund, ! and to carry fonvard £40,587. Tho dividend and bonus will be pay- ! able"' in Wellington to-morroAv, 20th inst., and at branches on receipt of adGENERAL. The progress of the Bank since its reconstruction in 1894 having been so fully l put on record at our annual meetjmg last June. I need not enlarge upon jit further than to note Avith satesfac- : tion the rapid growth of our reserve i fund, Avhich in 1906 stood at £81,294 I and to-day, after the proposed transfer of the £200.000, will stand at £1,200.000. This accumulation has | been made practically in the course of j the last six years. As a consequence of adherence to & cautious policy, the Bank's losses have i been exceedingly light. It is this fact, i coupled Avith the prosperity of the dominion and the great expansion of settlement and production that has taken place during the last 18 years, that has made this splendid achievement possible. Indeed, it may be said that the prosperity of the dominion during the years referred to has been reflected in the Bank's balance-sheet. The Bank's interests being so intimately association Avith those of the dominion, it is pleasing to knoAV that the revenue of the dominion for the financial year ended March 31 last is a "record," being reported as £11,032 544 —an increase of over £735,500 on the previous year, consisting principally of: Customs £251,000 Railways 182,000 Stamps 123,000 Land and Income-tax .. 60,000 The expenditure for the year is stated to be £10,340,000 under all heads. As some indication of the expansion of production and trade of the do-,

minion, I quote the totals of the com, bined imports and exports for the last seven years, which show an increase of about £10,000,000 for that period. I quote the imports and exports combined for a series of years, as the imports and exports of any particular year may be affected by late seasons, shortage of tonnage etc. The following are the combined figures:—

th}? th* i YeV c to learn ihlm??\ native lands in the North Island, alluded to previously at our meetings, have been receiving the attention of the Government since the passing of the Native Lands Act, 1909; so much so, that the Commissioner, in a recent address, assures the public the desired end will be attained within three or four years. Upwards ot one million acres have already been alienated and settled during the past two years, and further alienation and opening up will be proceeded with as fast as surveys and roading can be accomplished.

In like manner, the available Crown lands are receiving attention, with the object of bringing them into profitable use by lease or otherwise. Much of the native lands is superior m quality and covered with heavy bush The difficulty of promoting close settlement upon such lands lies in the large amount of money required for roadinoand improvements. To a large extent" we have to look outside of the dominion for the funds to carry out these works. If Aye had to depend entirely upon our own resources, development would be retarded for many years to come. The borrowing of money within reasonable limits, for the purpose of bruising such lands into profitable occupation and for acquiring other lands for close settlement, is fully justified. By such means, openings will be made for numbers _of immigrants— especially of the farming class with experience and small means, and farm laborers. It is to the at present undeveloped and'unsettled portion of the North Island that we look in the near future, for any large expansion in the export trade of the dominion. BOARD OF DIRECTORS. You are doubtless aware that the board consists of six members, two representing the holders of the Ordinary shares and four representing the Government, the holder of the Preference shares. One of the two representing the Ordinary shareholders retires yearly and the vacancy is filled by election at the December half-yearly meeting. Mr Kennedy was re-elected in December last.

Two of the four Government appointees retire yearly and the vacancies are filled, in terms of the Statute, not later than the first Wednesday of March in each year. Last March, Mr Milne's and Mr Beauchamn's terms expired, and, as you know, the vacancies Avere fillpd by the Government appointing Mr W. Milne and Mr D. J. Nathan.

AdA-ices received from Mr Benuchamo in London had indicated that his health Avould not permit of his s^ekins: re-ao-pointment. Upon his retirement, the Board placed on record its high appreciation of the very valuable services r°nderedJ)y him to the Bank during the thirteen years that he occupied a seat the board, and more particidarlv during the last ;five years when he filled the position of chairman. lam quite sure you Avijl all concur in this recognition of the good -"-ork performed by Mr Beau champ for the Bank.

Mr Milne's re-appointment gi\-es us muoh pleasure; and Mr Nathan's wide business experience and commercial 'training will no doubt be of considerable assistance to the Board in its deliberations.

We welcome back Mr W. Watson, vvho Ava<; absent in London when our half-yearly m°etinn- atps h°ld in December last. While in London, Mr Watson attended several meetings of the London board. Those mee+ings of your directors Avith the London board are regarded by us favnrnblv, as being conducive to the good of the Ttonk.

I may mention that Mr Watson's present, term of office e^mres on March 31 next, and that it is his intention to offer himself for re-election. Of th« original members of the board who took off ire Avhen the Bank Avas re-construct-ed in 1894, Mr Watson and myself alone noAv remain directors. Mr J. B. Reid is at present absent from the dominion on a visit to Europe. During his stay in London he will be associated Avith the local board in that city. My colleagues have done me the honor of unanimously electing me to the position of chairman for the year. I need hardly assure you that the best of my abilities will be' devoted to the duties of the position and the promotion of the prosperity of the institution with Avhich I have been, iioav, closely associated for nearly eighteen years, you having _ re-elected me each alternative year during that period unopposed. LONDON BOARD. We haA'e pleasure in again referring to the great care and attention be-stoAA-'ed upon the Bank's business in London by the members of the board there. STAFF. It affords us pleasure to once more record our appreciation of the zeal and ability displayed by our staff in NeAv Zealand, Australia, Fiji and London. In A-ieAV of the increased cost of living and of the greater responsibilities devolving upon the staff consequent upon the expansion of our business, the board, at the annual revision of salaries, has dealt Avith the remuneration of officers on a more liberal scale than in former years. The board has recognised their good services by granting a bonus of 5 per cent, for the year on their salaries, and I feel sure you will approve our liberality. Much of our prosperity is due to the zeal and ability of our staff. They have worked well, and it is only fitting they should be encouraged. NEW BRANCHES. t During the past year, we have opened six new branches, five agencies have been made branches, and seven new agencies have been opened. You will see, therefore, that Aye continue active in the establishment of outposts to meet the groAvth of settlement. This is a matter Avhich engages our constant attention, and we, are always ready to consider the claims of growing districts in a sympathetic manner. WhereArer reasonable inducement is found to exist. Aye are prepared to afford banking facilities. ! In conclusion I desire to remark j upon the present gratifying state of the markets for the staple products of the dominion. Wool, frozen meat and dairy produce are all commanding satisfactory prices and the outlook for the coming season in this respect is distinctly good. In the Motherland and in Europe, we find that political complications during tbe year haA re giATen rise to many uncertainties and apnrehensions as regards the future, and in Great Bri+ain the closing months have been marked by an industrial struggle < the seriousness of which has, I fear, hardly vet. been thoroughly apprehended. ' h"t which there can be no "doubt has result-

Ed m the loss of many millions of inonoyto the British nation. Unfortunately, the end ot such conflicts does not appear to be yet in sight, the strike of the l,ondon transport workers being at the moment m progress and entailing a considerable amount of inconvenience and loss upon the mercantile community. British capital has, as a consequence of these disturbing conditions, been shy and sensitive, and the London money market uncertain and in astate of tension. Owing to the combination of unfavorable conditions, tothe shortening supply of capital, and to tne steady expansion of our own industries involving a continuous demand for financial assistance in the development of the country, a hardening tendency in the local money market is at present being displayed. I don't think there is any other matter I need now refer to. and I have pleasure in moving that the report and balance-sheet be adopted.

lear ending March 31, 1906 . 29 445 541 do. do. 1907 . 34,853',634 do. do. 1908 . 36,079 509 do. do. 1909 . 33,832 431 do. do. 1910 . 36,845,390 do. do. 1911 . 39,257 085 •I?' J 0' i 1912 • 39,531.996 iou will see that the expansion may be regarded as satisfactory.