BANK OF NEW ZEALAND.

Manawatu Times, Volume LXIV, Issue 283, 7 December 1907, Page 2

BANK OF NEW ZEALAND.

« Per Press Association. Wellington, December G. At the half-yearly meeting of the Bank of New Zealand, the chairman referred to the recent fall in wool, hemp, mutton, tallow, and pelts, but said he did not consider that the values obtaining left much cause for complaint. The fall was probably in sympathy with the disturbed state of the money market, and rates would improve with it. Adverting to the financial crisis, he predicted that if the 7 per cent Bank of England rate was maintained for long money must harden in New Zealand also. The crisis in America was attributed to New York bankers trading on a narrow margin of gold, and the encouragement of vast credit. He issued a note of warning in connection with the system in New Zealand of several large trading concerns competing for deposits and allowing interest on current bank balances. He had recently examined the published balance-sheets of seven companies and found their indebtedness in this respect was £535,516. If by Statute banks are compelled to keep securities to the value of 6s 8d in the £ on their liabilities payable on demand, it was only right that similar obligations should be cast on these companies. It was gratifying to say that the business and profits of the bank, so far, were well maintained and the prospects were encouraging. Mr Martin Kennedy who had just returned from Home had made himself thoroughly acquainted with their business in London and they would be pleased to hear that they had. passed practially unscathed through the recent trying times. During the year the realisations of properties taken over from the Assets Board were effected to the extent of £332,646 and the total left now stood at £585,565. The Board proposed to pay an interim dividend of 5 per cent on both classes of shares. Mr Martin "Kennedy being unopposed, was declared re-elected to the Board. ■ Mr Martin Kennedy quoted particulars of the capital and reserves of other banking institutions doing business in the colony, with a to showing that if £150,000 was added to the reserve the time had arrived for an increase of the dividend. In reply to this the chairman of directors quoted the paid-up capital reserves of other banking institutions as a set off to Mr Kennedy's view. He declared that it was inadvisable to attempt to increase the dividend until such time as the reserves of the Bank of New Zealand fairly approached those of other institutions with which it competed. Mr Kennedy said that while the reserves of other institutions exceeded those of tlie Bank of New Zealand it had to be remembered that their business consisted of operations which were largely extended throughout Australia, where there was always a possibility of big losses through drought. It was in Australia that the Bank of New Zealand had lost largely in the past, and while it still carried on business there it now dealt in a gilt-edged class of business. The meeting passed a vote of thanks to the staff.