FRIDAY, JUNE 13, 1919. THE BANK OF NEW ZEALAND MEETING.

Hawera & Normanby Star, Volume LXXVIII, Issue LXXVIII, 13 June 1919, Page 4

FRIDAY, JUNE 13, 1919. THE BANK OF NEW ZEALAND MEETING.

9 The report and balance-sheet of the Bank of New Zealand for the past year show that the prosperity of the concern ha© not been cheeked in any way by war conditions. On the contrary, the Bank clearly has continued this past year to derive much advantage from the vast dealings of the Imperial Government in colonial produce, from the swollen financial operations of the D°~ minion Government,'and from the general expansion of exchange values directly attributable to the abnormal state of -affair® brought about by the war. We daresay that its fat profits

will form the text for many a philippic . iv the months to come, especially with a General Election ia eight; a 15 per^ cent, dividend concurrent with seve c writing down of assets and the erea J of a large reserve must be a very pleasant experience for shareh The Bank, however, has had itr., vicissitudes > there was a time &heii its shares were a ruinous poss- -and many ;a good colonist who, ;held them went under. The pity of. fo j s tliat so few of the people involve^ j n the coL lapse were able to w/iu^ through and share in the ultimate, success. But thi.* prosperity of. a s^iveat Dominion banking institution w.qght to be welcomed by bro'Ad-Kcimded .people; subject, of cour.se, fea the public being satisfied that baaiking business is being run on lin.es wMch make for fairness to custoiuers 5 .and solidity in public and priyiate The essence of good 'banking is conservatism—sharply as tha,t- ward -may be criticised. It was forg'jfcfuJness of this canon in some quajrters that led to appalling disaster ifl Australia some years ago, and in Nyfew Zealand brought us also to tjie brink of a precipice. The lesson was •"buriied in, the experience was too terrible to be easily forgotten, and general confidence is felt that never again will great banks be tempted to forget basic principles. There is a reference an the Chairman's speech this morning at Wellington which indicates that the Directors are, as alive to their duties as the Boards of similar institutions. In reply to the criticism that the Bank has not sufficiently supported trade and industry, he sets out his view as to the true purpose and policy of a bank, and happily that view is in line with that of a recognised English authority, who is quoted in. support. Only people who have the best of information are entitled to offer an opinion as to how far the complaint to which Mr Beauchamp replies is reasonable, but it is at least permissible in this column to say that the burden of proof is absolutely upon those -who proclaim the grievance, and that until such proof is adduced the defence must stand. Already, from on© cause and another— thj large issue of paper money is by some authorities impeached—there is considerable inflation of values in New Zealand, and it is a time to be cautious pending the more definite ascertainment of post-war conditions. In these circumstances prima facie the Bank's declared policy is justifiable, I and so are the warnings which, the Chairman gives in his address in respect of the prices to which, land has soared under the influence of war values for produce. So far, then, the . Bank in its days of high prosperity '•■ appears to be doing its duty to the community. In addition to Ms obser- i vations on banking, Mr Beaucfiamp had a good deal to say by way of extrabanking comment on various aspects of j public affairs; and whether our readers I approve or are critical of his remarks we think they will find them interesting reading.