BANK OF NEW ZEALAND.

Manawatu Standard, Volume XLI, Issue 9811, 12 June 1914, Page 2

BANK OF NEW ZEALAND.

AIvM.l MEETING. The annua! meeting* of the above was held at Wellington to-day, Mr H. Beau champ, chairman of directors, presiding. With the consent of the meeting, the re port of the director- and the balance-sheet were taken as read. '1 lie chairman, in moving their odoption •aid the report and balance-sheet disclose! a position that must be regarded as very satisfactory. The sum available for distribution was £291.608, and that, (he director: propose to pay the usual dividend, am to transfer £175,000 to the reserve fund leaving a balance of £51.608 to lie carrier forward to next year. Following the usia practice, ho reviewed briefly the principa itemi in the balance-sheet. CAPITAL. The capital of the bank, as at 31st March last, was a 8 under. Authorised.—4 per cent, guaranteed .stock, £1,000,000; "A" preference shares (£500,000), 'B" preference shares £1,000.000), £1,500.000; ordinarsharee, £3,000,000; total, £5,500,000. Subscribed.—4 per cent, guaranteed stock £1.000,000; "A" preference shares, £SOO. 000; ordinary shares, £1,000,000. paid up t< £3 6s 8d per share, £500,000; total. £2,000.000. The issue of new capital (viz.. 37,500 "FT preference shares, at £6 13s 4d each, anc 75.0C0 ordinary shares, at £6 13s 4d each lias been successfully carried through. Th ■ mount, £269,690, appearing under the hea(. of "new share account," represents tin payments received up to 31st March, in re 6pocf. of instalments on applications lodged up to that date. The .implication list did not close until Ist. April, and as allotment couK not bo made until some time subsequent t< that date, the amount does not'appear it the balance-sheet as passed to the credit ol the capital account. Nearly every shareholder had applied for the quota to which he was entitled, am 1 in the great majority of cases, the whole o 1 the instalments have'been paid up in full. The position, as indicated by latest advices. is «• follows : To To capital capita £ £ 37.530 "IV preference •hares issued to the Crown, fullv paid up 250.000 125.00' 58.659 ordinary shares, fullv paid ut) .' ' 391.060 195.53' 14.820 ordinary .hares partly paid up 19.532 9.76 r

Total received ... £660.592 £330.29'' The Board will shortly consider what wil bu the most satisfactory method of dcalin with the comparatively small number o •hares for which application lias not boo: made, and duo notification of its intenrioi wil! bo [riven. The Ro>orvo Fund.—This fund, \v I'le addition of the £175.000 whid ihe Board proposes to transfer from pro fit*, will thou stand ai £1.550.000. With tli »:mi proposed to he carried forward, nanieh £51,608, the reserve fund and undivided pr fits will amount. 1o £1,601.608. The premium of 50 per cent, on the is«n of capiialy recently made had 10 be crodit< to the reserve fund, and from this sotm the fund will, after adjustment, benefit t tlKM'itent of £375.000. Notts in circulation stand ai £P39.882. i compared with £994.680 a voar asro. Deposit* (£18.070.613) show the substantir increase of £1.655.974 as compared wirh ii figures of 1915. this movement being iii; principally to larger Urvornment balanc Ordinary deposits, however, also show an ii crease. Bills payable and other liabilities, e. kibit an increase of £36.375 on the ligun as ak 31st March, 1913. and now Gland ; £1.403,456. Coin, bullion, money at short call. etc. Coin and cash balances (£3.261.510). an bullion (£115,674). together show an ineroas of £228,225 as compared with the figun of the previous year, while the item mom at call and short nor ice. Government s. purities and other securities in London, aiexhibit* a substantial increase (£995.710 and now stands at £5.076.748. The |ai.;< Government balances, rdrcadv referred V account for the greater part, of this increaw The chairman mentioned that the totals u; der this heading, together with the amoir ot bills receivable and investments in ii colonies, are u)m\ to 61.52 per cent (or ]:• 3d in the £) ot the total liabilities of tli bank to the public Bills receivable, in London and in transi are mora by £316.955 than at the corn ■ ponding date last yoar.and now stnnd ,- £3.164,081. The increase is due mainlv t an expansion in the volume of the Domii ion s exports. Investments in the Colonies (£972.170 exhibit an increase of £14,902 as compare* with the fig Urcs ai 3j, t March. 1913. Advanced.—As the result of the legis!; tion of last Session of Parliament, 1. which the Bank was empowered to ii crease its capital by £3,000.000 (onn-fonrtl of which has now boon issued), the in stitution is in a position to take its fu' 1 part in providing funds for the furthei development of the country, and for th requirements of increasing trade and ii, dustrv.

Von will observe that bills discounted and other advances (which together totn: £-1,360,485), already show an increase o* £003.157 as compared with the figures of a year ago: and, as satisfactory business offers, a further gradual increase in tb. '.oral under the heading of advances mav be looked for. In view of the upward moYement in advances, the greatest care and attention is ?iven to this important branch of the business by the directors and the executive officers of the Bank. Landed Property and Premises.—Thopening of several new branches, and the

necesiity of providing better accomodation at pointa where premises had become inadequate for the Bank requirements, had entailed a considerable expenditure in building during the year. The Sydney, property has been sold at a satisfactory figure. t After appropriation of £40,000 from profits, now made, landed property and pre-1 misps stand at £449.577, as- compared with £167.827 twelve months ago) | I'rufiS and Loss.—After the payment of £40.000 interest on guaranteed stock and' the making of all necessary appropriations.l including provision for the Bank's annual j srant to the Provident Fund as well ns i bonus to the staff, and the allocation of I £40,000 in reduction of bank premises and furniture accounts, the net profits for the yaar amount to £308.490, as compared with £302,530 at 31st March, 1913. Adding the amount brought forward from last year. £43,117 and deducting the amount of interim dividend at, 6 per cent paid in December (£60,000). the sum available for distribution is £291,608. The director! now propose to pay a further dividend of 6 per cent, and a bonus of 3 per cent, on ordinary shares, and a further 4 per cent, on preference shares. The amount, distributed to shareholders for the year will therefore be £125,000. It is proposed to transfer £175,000 to the reserve fund, and to carrv forward the balanct £51,608.

The dividend and 'tonus will he payable in Wellington to-morrow, 13th instant, and :U branches on receipt of advice. While on the subject of profit and loss. die chairman mentioned that the amount appearing under the head of "rates and Mixes' continues to increase steadily. Nearly the whole of this outgo is in Now Zealand, where our total contribution In "axation, general and tocal, now exceed" £57,000 per annum, or nearly £llOO per week. In fact, the general tendency for expenses under all heads is to increase in a greater ratio than the profits of the bank: but, in this respect, we are only in the same position as similar institutions. Board of Directors.—The term of office >f Mr William Milne and Mr 1). J. Nathan, two of the Government appointees >n the board of directors, expired on 31sl March last, and they retired as at that date. The Government appointed in their rtead the Hon. Thomas Fergus, of Dunedin, and Mr R. W, Kane, of Wellington. both of whom are with us to-day. Mr Milne had been a member of the Board since 1695, ami always took u deep personal interest in the business of the : >ank. His special knowledge and training is a banker have, on many occasions, rendered his services particularly valuable, and it is fitting that they should be appreciatively acknowledged. Mr Nathan was also a zealous and active member of the board during his eomparatifely short term of oflice, and we have to express our recognition of the time and I attention which he devoted to the bank's interests. The lion. Thomas Fergus is too wellknown as a public man of the Dominion, and a merchant of Dunedin City, to need any introduction, and Mr Kane is an old officer of the hank, well-known to ntusi if the shareholders us a former manager of die Wellington branch. We have pleasure in welcoming them among us, in the as durance that each will bring to bear upon 'he duties (if his position ns a director of lie bank experience, qualifications and Itnowledge, which will prove helpful ii. •he board's deliberations anil conducive to die bank's welfare.

London Board.—To the chairman, and >ther members of the London board, we •18. r to acknowledge our indebtedness its •onnection with the conduct of thu operarions in London, whore, an you know. ; * valuable and profitable business is trans »ct«d arising out of the Dominion's trade, and, at certain periods of the year, tent horary omploymcnt has to I>e found for large ami accumulated funds. Staff.—ln the task of administering the steadily expanding business of the bank. we are. of course, greatly aided by the iine body of men that constitute our staff. I am satisfied that in efficiency, real, ami levotion to the bank's interests, our staff is not excelled, if it be even equalled, by the staff of any other bank in the Australasian Dominions. The London staff are also deserving of special mention for the zeal they have dismayed in* the p iformaneo of their duties, •Vlliel this year ha\e been somewhat heavier than usual. To tl;:> v.J-010 staff the board have conveyed a tangible expression «f appreciation ;iy payitig tliem a bonus of five per rent. on ih'ir salaries—a recognition which 1 have no doubt will have your hearty ap proval. Deed of Settlement.—Tt is proposed t<< ha\o the deed of settlement of the batik amended so as to make it conform textu ally to all th.> changes that have beet: brought about by statute, and you will. it a later meeting, be ,—<ked to formp.ll. adopt the amended deed by special resolution passed in terms of clauses 84 and 8b if the existing deed. Opportunity will. at the same time, be taken to embody in the deed a provision to carry int. i'ifect the understanding arrived at last year, between the board and the shareholders' committee, in regard to the pro-

prietors' rights of speech r.t general meetings. We hope to have all this arranged in time to have the necessary resolutions passed at the next half-year general mooting, in December, of which due notice will !*• given. It is proposed also to have the various statutes affecting the hank reprinted in such form as will show at a glance lliosr portions which have become obsolete und those which still remain operative. By this means, the legislation und deed of settlement of tho bank will bo brought up to date, and be made available in a conTonient form. In due course, shareholders will receive further advice on the subject. The chairman then formally moved the adoption of the report and balance sheet. The motion was seconded by Mr William Watson, who announced that he would again stand for re-election to the board at the half-yearly meeting in December next, when he would have completed twenty years' service as a Director, The motion was carried,