BANK OF NEW ZEALAND.

Manawatu Times, Volume LXV, Issue 1345, 17 June 1911, Page 7

BANK OF NEW ZEALAND.

ANNUAL MEETING.

THE CHAIRMAN'S ADDRESS,

The annual meeting of the Bank of New Zealaud was hell at Wellington yesbarday. Iu the course of liia speech, In moving the adoption of the report and balance-sheet, the chairman (Mr H, Beauchauip) said this is the jubilee year of the Bank, and the report ami balance-sheet disclose a satisfactory position. (Thes3 appear on paga 4). Iu last June, yon may remember I exprersid the hope that the Bank wouli this year be in a position to show its Reserve Pnrd and undivided profits at not less than £1,000,000. To-day our Itaive Fund, after takiug orenit for an appropriation of £200,000, which the directors prnposß to make fcoru the profits at 3Ut Maroli last, will stand at £1.000,000, Tim following shows the rapid growth cf this fund siuoe 1906: 1906 £81,294. IHO7 £250,000, 1908 £450,000, 1909 £650,000, 1910 £BOO,OOO, 1911 £1,000,000: £500.000 of the Reserve Fund is now iuvfsifid in British Government securities. Notes in oirculatiou stand at £977,246—in incroase of £57,917 as ooropared with last year. Deposits ftre more by £3,199,066 than at March, 1910. This inorease is due iu a great measure to larger Government balances, but ordinary deposit', both free and fixed, also show a considerable and

sttisfactary expansion. Bills payable and other liabilities show an increase of £292,503. Turning to the asset* side: (Join, bullion, mouey at short oall, etc., as oompared with the previous year, money at short call, Govern'mant and other seonritißS in London show together an inorease of £2,818,595, aud now stand at £6,710,239. Ooiu aud cash balances are more by £104,515 than at March, 1910, the item now staudiug at £3,248,290. Bullion also shows an iuoreasa of £7514. The figures shoff that the Bauk is maintaining a strong position. The tota j s undor this head, together with the amount of bills receivable and investments iu the Colonies, are equal to 67)£ per oeut (or 13i 6d in the £) of the total liabilities of the bank to tho

public. Bills receivable in Loudon and iu transit, are Ibes by £831,939 than at 31st March, 1910. To a shrinkage in the exports from the Dominion the lesser nmotrnt under this heading may be attributed. Investments in the Colonies stand at £1,338,010—an inoreasa of £193,265 on last year's total, represantiug the extent of our futthor purchases of debautnres of lnoal bodies, some of which are held only temporarily pending lealisation. Advances: Bills disoounted and other advances snow increases of £77,177 and £912,367 respectively on the previous year's figures, the natural result of renewed activity generally. Assets Realisation Boarj Assets: The following table shows a steady and satisfactory reduction in th°se assjts for the yearßalances owing by purchaseb at 31st Maroli, 1910, £286,899, at 31st March, 1911, £178,540; other assats unrealised, £46.391 —£87,813. We are oontinning our ofioits to dispose of the unrealised properties as speedily as we can, without uudnlv bacriiioiog them. Landed property and premises stand at £423,739, an increase of £63,949 on the previous year's figures. This somewhat large increase

is mainly due tj the aoqnisitiun cf our new premises in Oollius street, Melbourne, anil also to the purchase of a central siti in Sydney, which will enable the Bank to erect suitable premises of its own in that city. The openiug of saveral new branches and agencies, and the necessity for the better equipment of oar premise at other points in the Dominion. has entailed considerable expenditure iu building operations duriug ttre year. The net profits for the year, after paving the £40,000 interest oc guarautaed stock and making all neoessary appropriations, including provision for the Bank's annual grant to the Provident Fund and bonus to "he staff, ss well as allocating the snm ot £20,000 In reduction of Bank Premises and Furniture Accounts, amount to £295,270. Adding the amount brought forward from last year (£64,134) and deducting the amount oi' interim dividend of 6 pel cent, on prefereuoe and ordinary sharos paid in December (£60,000), the snm available for distribution is £299,405—as against '£270,884 last year. The directors uow propose to pay a further dividend of 6 per cent, and bonus of 8 per oent. on ordinary shares (making 15 per oent. for tho year), aud a further 4 per oent. on preference shares (making 10 per oent. for the year. The total amonnt distributed to shareholders for the year will therefore be £125,000. Of the bnlanoe remaining, it is proposed to transfer, as already mentioned, £200,000 to the Reserve Fund and to oatry forward £84,405. GENERAL REMARKS. It would be wise, on the part of the business community, to pursue a polioy of economy and caution. The trade" returns ar* not as euuonraging as one oool'l wish, aud, although they are not actually disconcerting, fchev point to the pcsdbility of some little stringency in' the near future. The values of the exports and imnoih for the year endiug March 81st last, compared with the figures for the three previous years, disoluee the fact that, while in 1910 tho o was a big expansion in exports aud j n contraction iu imports, as compared with 1909, for the year just 1 closed the growth in exports is difI appoiutingly small wlnlßt the in- | orease in imports is exceptionally | large. The totalß (excluding specie) are as follows:—Year ended Match 31st, 1908, exports £17,863,842, imports £l7 4(10,481; 1909, £16,767,818£16,818,759; 1910, £21,467,887--£14,773,821; 1911, £21,497,205£17,885,066. It will be noted that while exports for 1911 show an iucrease of oulv £29,818, imports have lucreasad by £2,611.245. Tha fieuras indicate a disposition ti over-importation, whicn, if uol checked or counterbalanced by c corresponding growth in our exports, "" miy lead tj Etriugsct fiuancial ie ditions in tlie Dominion lat j r on, Thn iutweit ehargo on our debt ii estimated at £3,500,000 per annum anil dues uut appear exceßSive. It st the four years to jviaroh 31st 1911 so mir import! were valued ut £65, rs 989,067, and the amonot due oi te interott during the smie period was approximately, £14,0G0,00C. Nev Zsalaud had therefore to find a suu of £79,989,067. Our exDoits for tin mi period totalled £77,596,252—50 tha ilc we wore £2,842,815 short of require lb ments.

The adverse position shown by the exports dui'iug the curreut produce year commencing October last, is mainly duo to the smaller amount roceived froua • tl:e wool clip. The decrease in the total value is £978.750 hq arises in the smaller total of the first four months of the preSbut year, For the throe mouths to Daoembsr there was an increase of £310,371!; but iu the foar moi'tlis of this jont tnera is a shrinkage of £1,295,136. Dairy produce also shows a shortage in the fitsti'our mouths of this year tiie decrease iu butter being £79.826 and in eheesa £65,?0t)-or a total of £145,535. The unfavourable weather experienced season is of course accountable for this, The dairy industry however c&n-

tiuaes to make wonderful strides, ami wlmt lias been accomplished during the past foov yeais is positively amazing. The iucrease of £3,317,065 is nearly 50 per cent., and shows ramarkable progress. TIIO gain however, arises from the oxpaunoQ of the cheese output, wliich tins saason has been tho maiiißtay of the dairy indnstry, The prosperity of the dairy lavmeis of New Zealand has been loug oontiuuad, but, in the natural order of things, a set-baok may reusouabiy be expected. In tliis connection I am still of opinion that the priots of dairy land are miuntiined at too high a level. New Zealand butter suffered severely from tho competition of the Aust-alian product during the season now closing, and the bad effects were increased by 00mplaints as to the quality of our product. The exports of frozsn meat have increased tliis season, partly becausa the adverse olimatio conditions forced the stook into the slaughter yardt; of the various freezing oouipanies. The meat trade litis engaged a good deal of attention owing to varions reports as to tho intentions of the notorious American Beef 'JL'rnst. So far as New Zealand is ooncemed, there is, 1 think nothing to tear from the Trust, for there is no room for it here. So long as the railways in this Dominion are owned by the Stats, it would be quite impossible (or the Trust, to capture the meat trade. Turning to the monetary situation, taera is no doubt that an abuudance of money is available in N6W Zealaud. The Ecope for ita employment, however, is restriotad. Any industrial enterprise likely to require much labour is not viewed as a goon proposition. Capitalists are unquestionably nervous at the attitude of labour, and this is to be deplored, for it must be patent that, unless there be exhihitad a spirit ot greater

harmouy between Labour and Capital, no quiokeuiug of industrial activity oan be louked tor. I have the conviction that, if employers and employers exhibited a genuine desire to wurk amicably together with a mutual regard for the just iutaresiß of each other, industries wluoh are at prcseut in A languishing oondition would spriug into reinvigorated life and prosperity. This is essential In the interestsjof the State. DISCUSSION During the discussion, Mr T, S. Weston moved: "That the directors be voted a bonus of £3OOO in recognition of their services, and on account of tho inadequacy of their remuneration, considering the growth of business and the responsibilities attaching to them. The chairman said ho could, not accept the motion without notice, and added that, moreover, remuneration was fixed by law. Subsequently the chairman was voted a bonus of £SOO in recognition of his services and in view of his visiting Europe. Tho chairman said he saw no reason under normal conditions why a dividend of 15 per cent, should not be continued. The usual votes of thanks wore passed.