The Marlborough Express PUBLISHED EVERY EVENING. FRIDAY, JANUARY 5, 1912. THE BANK OF NEW ZEALAND.

Marlborough Express, Volume XLV, Issue 141, 20 June 1911, Page 4

The Marlborough Express PUBLISHED EVERY EVENING. FRIDAY, JANUARY 5, 1912. THE BANK OF NEW ZEALAND.

: -The-posiiiion 'ofci*Ke ; -Bank of, New Zealand's -affair % disclosed; «i;tb.e reportoandbalance-sheet predated at the annual meeting .held va*/Wellington, on Friday last, is one umwhich, £bt only' the 'Bank's shareholders; but the whole community are property to beJcongi#tatatedL The ramifications of ihe :bttßinessittt&rad,wwespreadvtbroughwdt -the-Dominion,; ;the volume of itis financial basmess is so much greater than ihatof any other banking: iMitution doijlg business in New Zealandv-that iis prosperity, may be fairls • ifeg^rded^s being an index ito'ibe'JP*ospei^t#>Stv*he -country as a jfsrlible. J>?oi& ®tnfc/: Ms '©^countered ■ many ■Vii^ssflM*?:' durii»g,-ite f career.. Thfcrei have • teriods; when; large profits' were earned, and periods*,also when there have -been no fronts at all: and-jone disastrous happily of sttort *luraiipn, when the very existence of the institution was graver lyiimp^^MSlt 'ii'-iaow a good many ye^rs ago sinc&'the State to wisely- and gerierou&ly came io the assistance, or the Bank and thereby prevented what must infallibly have been a national calamity. E^udent management, addhed :'to':*?soljw':'-'!to*& 3nO&fe substantial augmentation :of ,■' the general ifiroS" perity of iie <i>untry, has ©nablea'tne Bank ;to^ly^fl»-^ i<tuim; the }^.a, positions 7'^ una&sailaMei security;* '■'l-rfeSuli1- %wi» by ■ this-^yei^s^^ ever, v%; *l*rge|y duf to. thfe energy;' the spintiof^'t^rogi^ssi^i^s^iana^ne^ unfailing Caution said prudence'';e3Eer-. eised by tb;e\dire^^^ w tencbmiums passed; upon their conduw of 'tKfe business y>f' the Bank by yaHous "present 'at •"the;. mee|ingy^^! now--p^©s's;:sa;:-:ol^hdid';.pl-^wr^^^ 1 the--; -^sKe •i- directors;, 'a;, ;iK>nus|i^ißol|h-it rcouMj.nbt;' ber^acrceptedHthefew'iee®'- .'be|ng ; paid: by i;statui^4tra|© in.-'erery #&y ■ • aV;propet; one. The of affairs has 'We^^&^i^Mi'iA^' 'a% :their ; i|^elri;: <^utieSi;: d ; e*^|tig "v"upipn: vnielmb^siw^hei,'l^'r^'''beingyno^^^^ ■ffibr« /fe^i^^v^ttnd /ardu^usjthan^tnfey': ■-yfetyb^ io^initti-M|&^sar3f, "and' t ;po^Bib| le "for th'e/ii;c^'*|^A;b©^pende<i\so ;;aß;':to''.;^llttw .■b'fc'ai ■ 1 ei^olumerit < t bein^ --.paid.' 'Our-iepi^ifa&ye' 'had;- an '^bpp^rtunrty of ■.■p^f.ii^g:>|neL.'balaflce^neet^:a:'^ '■'pi ■ in^^KHB 11 '!»- marksi upon Me spee^es deliyeiped at ~ anntia^^e^wng,i-;:l)y-■ ]fc.Ha*oia chairmaia.;\and ;;:-D,y.".-. oiher I ■sjwal^ers :,o^^i^t;\fpcc'asibn.v1 -lfc\;'Bje&wMfei»r-whft'^-;;af;^^^^^ sui^^f^;-m4r<cH^n.tj t'ni&y" jajicuised' Of,' '&'- 'slig|t^^]BLdency. ito";;; pessiniiism. :;'in; his,. r^ttia^tf'jbtt'V^TbJitii financiiEil biitlook1 and: !^»i|ii:e|llsi^h^: (JSp^endid. iresults of .£&■'■• laist'• 'yeat'^'.bu'sinesS;■>may ;not,; { 'at first- :sjghtrr;';"^e«inir-::;;t»;.;#arrant i ;.'.: aiiy special, i^e^^t'lo^ciiutio'riiinv'the ■ -iiotpiß-. diate''iu|ti,rei-;:"^Bnife an excess of caution;, in %^ntleniarisholding the position' /-of" ;;^^mnattf;)of ;;■ directors; ~jpf "l» ,B,an^;/;whb||^ l ; v:bu^ ,cbnn|efet^^^itfe;?;;^^ . bust-1 •heM; of;\"t|iel'.l^min.ionr.;,shotild.:;.be'>:'r!e-' ''garao^'ga^^^irtiie, ak;:»• ■i,ault^'TO^^ha■^; doe81;..M5t^ rße^u^ '.^ntend'^.',,'^©.' ■'condense-'' .his ;!'r.emarks,: he,4s ?i^^iae«|ly t .:^me^hat...:affaid ■, that, 't]^;g^i^'}iM^Bpj^^y^ ■beiinjg ;en^W';By-}ii;h^ c^aijiiiry '.l^int-a; latg|; 4^p-e^>-3tie|;-.not;.ag| ;it ■ cliightj ,to> -be^^ra^ge^u^^jad/per^ne^'be^ Wt, arising f n)m %creiase^'e;!cpoirfcs^ and ,ato:ra9reaSed-vva|^:-;;df:ysuch''^ but to; the niereijicio'ds' 'irtd ecbnomiicaUy ;^Ja!tge:"sunis. of ilipia'nvMioni^y.-.' •mcliiied^:' to think^rthMiMr^ :Bi§attchamp makls' a ti;i%^|ffl>^|[muchi vTdapital out' of the lar^ely::lw6reasea volume of, imports, .whichn:is/; to our mind, the- result, in no smilliidegree,s«pf the fact that diip- - ing the tlean,: yeats of temporary ' depression t^ercharits and warehousemen kept )thei# Shocks; down, to sheer "bed rock^ ;^h)bs necessitating, when, busi(ness:impr6ved, a -more substantial replenishing than would take place in yewM-s vwhei^ business is on■/= a. normal basis.j; When; .the figures for. the curfep.itv;y,eaj> ■■obrnG^ tb:. he piublished' in they willj we believe; shov niuch lessi disparity between imports and eikpbrtsV ; Mr Beauchamp, ;however,' isoii'firme^ ground when, alluding to the wool industry, he points to the serious decrease in the revenue tunder thi&head/ -We agree,' also, entirely'with'Mr';Beau6hamp's, opinions onHhia CSrcessiye Value v of lands ;devoted t6"the dairying industry. The expailsioii of the cheese expert has been specially responsible for the magnificent increase of nearly .50 per^cent. on the dairy exports for-the four years ending March. 31, 1911, as compared1 with the four years ending March,3l, 1907. B«t'Mr; Beauchamp foresees much more serious competition1 from Australia in the dairy produce trade than we have had previously. Owing to the absence of drought the Australian dairy farmers are greatly increasing their output, and if the present climatic conditions prevail for another season or two on "the other side" Australian competitors may very seriously, affect prices. Mr Beauchamp omits, however, to refer to what \ve consider is the real reason for New, Zealand's lack of progress in the volume of her primary products, and th& curious but undeniable fact that-the Banks and financial institutions have at present more money than they can find profitable employment for. We believe that the present volume of exports might be almost immeasurably increased and profitable employment found for all spare money now. awaiting investment were only a bold and comprehensive system of land settlement put in operation. Mr Beauchamp talks of capital being shy and nervous owing to 'the attitude of Labor/ and pleads tor l a "greater harmony between Labor and Capital." But precisely the same plaint has been voiced in New South Wales, which nevertheless was -never so prosperous at any stage in her history as at the present moment. The true reason, so we firmly believe, for the present disinclination of capitalists to invest money is not any fear of Labor troubles but the lack of sufficient customers to render new industrial ventures- profitable. Our population— especially the population on the land, a population of producers—is not in-

creavsing in anywhere so rapid a proportion as the population of our large centres of population. More 'producers would mean not only more exports but more customers for articles manufactured in the Dominion. We are not putting a sufficiently increased number of people on.the land to swell our exports and to provide an outlet for the products of our factories as we

ought to do, and consequently the field for investment is unduly limited all round. We do not say that the fear of Labor troubles may not be a. factor in the present disinclination of capitalists to embark upon new ventures; but it is not the only factor by a long^ way. It is the comparative paucity ot Crown and other lands open for settlement, the difficulty of getting sections even when the land is opened up and the feebleness of the.inward flow Of new colonists of the Tight stamp which are. most responsible, of that we feel convinced s _for the present apathy and distrust wrfch which capital regards proposed investments. But even Mr Beauchamp himself pleasant-, ly corrects his temporary pessimismrby a concluding note of most agreeable opSSm "The immediate outlook is, speaking generally, . nSv^vield a^mal'ler monetary return, l^^ul^compen^^^^l KerTWandihg s^^Syv^V^w" cords of unemployment, show ttiat fewer people Have been out of wo* s*> longas British trade is good, theprospeels of NeW Zealand remain bright £nd promising." So. after all, by Mr Beauchamp's admission,- the outlook is hardly so gloomy; as the first portion of his speechjmight lead its Naders to imagine. There .are other features in the report of the; annual meeting upon which we : desire^d intend to commen.t, notably,^Mr Maxtin Kennedy's able. ami., interesting extiosition of >the relatiV** Pf ltlo I ns,£ f the^Barik of New Zealand and-bhe State; v =but consideratioJi of these miist perforce be deferred^ another occasion: To-day fe /have My_to cojiffratulate both the .Bank and the country upon the -highly satisfactory Wtion $t the Dominion's premier financial institution.. , >