NATIONAL BANK OF NEW ZEALAND.

Nelson Evening Mail, Volume XXXV, Issue 201, 3 September 1901, Page 2

NATIONAL BANK OF NEW ZEALAND.

Mr Richard Maxwell (Secretary), having read the notice convening the meeting and the auditors' certificate, The Chairman said . It is very gratifying to the directors that they have been able to lay before you such a favourable account c f the bank's business as that contained in the report. In some measure this has been due to the prosperous time that New Zealand has experienced daring the past year. It has been a time of comparative prosperity, at all events. The population and the revenue there ara increasing ; the imports entering the colony for the past year show an sagmentation of .£2,000,000, and although the exports have fallen off by about .£IOO,OOO, that seems to be due not so much to any diminution in the quantity exported as to the lower prices that have prevailed for wool, gum, and some other articles. Notwithstanding [the state of the wool market;, which certainly hag been very unsatisfactory for some time past, especially for the crossbred kinds of sheep that are so much raised in New Zealand, the farmers generally in the colony have been doing welL Their frozen meat and dairy produce are now mounting to very large figures, and they have been obtaining excellent prices for their live stock. The consequence is that as bank customers they are in a better position than they were, and T am very glad to say that many old accounts, which -we have as a survival from the time of the bank's difficulties, have now been brought into a very much better position than has been the case previously. We have been able, owing to the demand for real property, to make sales of securities that have been held for a long time past, and the sales have generally proved satisfactory. The output of gold for the year which haa now elapsed has reached a million and a half, being in excess of 1899, and fsoofioo over that of 1898, and of this a fair proportion is dealt with through the medium of the bank. The report bears testimony to the expansion of the bank's business in the principal items. Discounts and advances show an increase of .£193,000 as compared with the previous year, and the note circulation is now i»2q,OQO larger. I may mention that the amount of notes issued is now exactly double what it was in the year 1803. Cur cash is .£46,000 under the last figures, which were exceptionally large. Securities have been sold or written down in value to t,he extent of and landed property, through sales, is reduced by Our liabflilies to depositors and on bills, eto., which now exceed £3,000,0C0, show an increase of about .£6B 000. Ihese transactions have resulted in a very satisfactory gross profit of £' 14,500, which shows an advance of £10,400 upon last j ear. On the other side the charges have increased by £5,700, of which jW,OOO is a mere bookkeeping entry. It has been thought more regular to debit the branch profits with rent for the premises they occupy and the amount so charged appears on the credit side in the premises account. At the same time the increase of the bank a business bag called for some increase of the staff, and in this progressive state it is impossible to avoid making some additions to the charges from year to year. r < In the appropriation of the balance of profits $he transfer osf £30,003 to the reserve fund will, I think, meet with general approval of theiibareholdera. Thtfpocsession bf a reserve account of £110 Ood adds to the security of thebafck, ifcinoreasea its credit, and intreases afeo tne value of ite shares, and by so much augments its working capital. - THe increased dividend that we havp, been enabled to de. dare, also, I fancy, will be generally ac--1 ceptable. The B : per oent basis which we I have established for the dividend I trust contains an. element of permanency; and I it has afforded much pleasure to the directors that they have been able to add to that oU4this occasion a bonus of 2 p.o. ; The advance tVot has taken place in the ' ralue of- our ' shares is very satisfactory. 1 T have only further fo assure you, gentlemen, that the bank is now doing a j sound and prosperous business, and that , its influence and standing ' in the colony 1 are steadfly advancing.' The number of accounts » very large, and 8&U increa&

*■■ in&!^ Yon^wiH B^ErtinVthe ?epprt; that ' wei have dosed dating the year one branch and one agency, for the single teawn tlwt they^rertiiibt foilnd remunerative. But whenever there (is a sufficient number of customers who are pre- ' pared to support the business of the-bank we are quite ready to give them any ' :. banking facilities that may be repaired. ; Opportunities of that kind bare presented themselves from time to time. I have only with very sincere pleasure to testify to the zealous and effective assistance 'Utliat we nave received from the staff of v 'tupbank, both in London and in the colobyjandl may say that our general manager at Wellington, Mr Coatea, en- '• joyVthV highest confidence on the part of the directors, much of our success being 1 due tp his oarefalananagenient. And, not , only ahe highly esteemed by the direc- ,. tors, but ah)o by the colonial public, among whom he dwells. I now move, ' ! gentlemen, that the report and accounts. TO adopted andentored on the minutes.. .Before I put the motion I shall be glad j ci» hear any remarks. . . fouSWfcSkSas in exigence after one offi^^cris^ that has eyercc©orrerfSanie to the conclusion that it of the somyal of tte fittest. ". p And I may say that I huik the ffl^tfreatest kudos and credit is due to -^directors of this bank for having f overowne the almost eM^J^T „'■'■ cottiekthey have have had to go through donngihe last seven years. It must be an enormous satisfaction £o all of us to see that we have now arrived at a .dividend ot 10 per cent. I have taken out the proßtß shown in the balance Bb«et and by the report, and I find that they amount 361 per cent. I f..r"io f- Bhall be satisfied ii you can ob- .^ tain. jOBriO percent dmdeud, and I may alntf ßtsay m-re than satisfied if you only W- maintaimit and do not increase it. 1 find thrttwoof thWgreatest banks in the - Aitttraliaji Colonies, the Bank of Austra- - lariaand the Union Bank of Australia, are even-now, after -«) or 60 years' trad- -■ iwr, only paying 7 per ceilt and .10 per COTt respectively. I think, therefore, we maybe content to follow in their foo^ steps. Moreover, I Bhould Uke to remind you Uiathtetoiy has a knack of repeating fSf, and /that- it repeats iteelf more rapidly in new countnes than mold. , Even now there are iigne of inflation ] again in some of our Australian Colonies. All the bank troubles of the past arose from a period of prosperity. , Now, I know that Mr Coates is a very g/»d man Ihaveimade independent inciuineß, and lam very gladto see my udoTma.twn confirmed by the chairman to-day. But all bank managers are mortal, and they ' are all apt to be led away in .times of great andprosperous trade by the desire to make their profite bigger- and bigger It does not matter to us whether we get 8 per cent or lp per Cent very much, bub it matters very much whether the bank is Bound or nott . , • Mr Bendix Hallenstein •• 1 think the balanoesheet testifies to the soundness of the bank, especially in placiDg .630,000 to the reserve fund. I knew Mr Coatea for many years before he was appointed general manager, and I take him to be a very able and cautious man. I know most of the managers in the colony, and have come into contact with the principal managers in Dunedin, Christchurch, Wellington, and Auckland, and I can say that a better set of men is hardly to be found. Iwas at the head of large business concerns in New Zealand, and also a director -of some of the most important companies there, and I know how difficult it is to find good men ; and yet upon the men with whom you Bur(Contimted on 4th Page.)

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round yourselves depends the success of Ihebank. Ihe exports of Ne^ Zealand consist principally of wool, frozen nieaw grain and all agricultural produce, such as butter and cheese, .which have lately assumed very large proportions, and are steadily increasing. Every month shows an improvement upon the previous month, and our imports, notwithstanding that we manufacture a good deal in New Zealand, are steadily increasing. You, Mr Chairman, stufcd that the exports had fallen off, Thai; does not tally with my advice, which says that they are increasing every month. The r hairman : We are always exceedingly glad to hear the views of a gentlonian from the colony of New Zealand, because they are enabled to contemplate the operations of the bank even more closely perhaps than we who sit in the board- room ; and it has been very pleasing to me to listen to the testimony which Mr Hallenstein, an old and valued friend of the bank, gave us with regard to our manazers generally and to Mr Coates, our general manager, in particular, t think Mr Brock gave us some very wholesome remarks about the necessity for cautions in the operations of the bank. That is constantly before us, and it is quite true that we must not look for undiminished prosperity always in the colony, and that as a period of bad arnes may follow the good times we must make our preparations for them long beforehand. It is very pleasing for me to hear Mr Hallenstein's tegtiniony to the caution which he knows from personal experience, and which I may say is universally exercised by Mr Coates. The motion was carried unanimously. The Chairman moved that a dividend be declared of 8 per cent per annum for the six months ending 31st March, making with the interim dividend 8 per cent for the year, and that a bonus of 2 per cent for the year be also declared. Mr J. M. Stobart seconded the motion, and it was carried. On the motion of the Chairman, seconded by Mr T. Seaber, Mr W. J. Steele was re-elected a director. On the motion of the Chairman, seconded by Mr K. Logan, Mr Stobart was re-elected a director. Mr Hallenstein : I wish to propose a vote of thanks to the directors, to the secretary and his staff, and to the staff in New Zealand headed by the general manager, Mr Coates. I have stated it is very difficult to find good men, yet upon the surrounding yourselves with good men depends the success of the bank. I wish to assure the shareholders that their business is, so far as I can tell, in safe hands. Mr J. Butterfield seconded the motion, which was adopted. The Chairman : I am very much obliged to you for the kind way you have received the motion, and to Mr Hallenstein for his remarks. I believe all that has been said is perfectly warranted, and that the staff fully deseives the commendation given to it. I may jubl; mention, with regard to the exports, that I believe Mr Hallensfcein is quit c right in saying there has been an expansion of exports since the year began, and that they are certainly larger than the exports for the years 1899 1900. The set-backs which I referred to is probably merely temporary, and no doubt the return of prosperity will cause the exports to increase from year to year.