Manawatu Evening Standard. CIRCULATION 4000 DAILY. FRIDAY, JUNE 12, 1914. THE BANK OF NEW ZEALAND.

Manawatu Standard, Volume XLI, Issue 9811, 12 June 1914, Page 4

Manawatu Evening Standard. CIRCULATION 4000 DAILY. FRIDAY, JUNE 12, 1914. THE BANK OF NEW ZEALAND.

Inasmuch as tho prosperity and stability of the Bank of Now Zealand is simply a reflection of tho economio conditions existing in the Dominion, there i* reason for general satisfaction at the retrospect we publish to-day of tho Bank's operations during last financial year. The profits during tho annual period were again very substantial, totalling some £388.000 odd, and whatever department of tho Bank's finance is referred to. it is found that it stands in a decidedly favourable and saisfactory position. But the actual figures relating to the institution's progress, while in themselves of great interest, are less important probably than the causes which are behind the unexampled prosperity New Zealand is enjoying. In his speech at the annual meeting to-day, the Chairman of Directors (Mr H. Boauchamp) g.,es very fully into tho trade of the Dominion. He emphasises its importance as a producing country and his references are calculated to bring home to the reader how j dependent New Zealand is upon the 1 great primary and staple industries. | The Chairman's review of last year's i trade will be read with interest, and in j this part of tho Dominion special attention will bo paid to his references to the dairying industry. While Mr Beauchamp finds that the limit of expansion has not yet been reached, he sounds a warning note in regard to land values and the cost of production | that the New Zealand farmer cannot 1 afford to disregard. He points out; that land hunger and competition are forcing values up to a point which leaves no margin for any material increase in cost of production or decrease in sale'

price of the product, and as the cost of production does not seem likely to diminish, but rather to increase, do effort should be spared to maintain the excellence of the product, so that a drop in prices may not occur as a result of deterioration in quality. The deduction he draws from this is that values of land are adjusting themselves at such a level as to leave no room for the "slip-shod" farmer. If the industry is to continue payable, with land at such high values, scientific principles must be followed and the most approved methods adopted, in order that the Very best returns on the labour and capital employed may be realised.