THE COLONIAL BANK. (BY TELEGRAPH.)

North Otago Times, Volume XXXVII, Issue 8087, 27 September 1894, Page 3

THE COLONIAL BANK. (BY TELEGRAPH.)

Dunkdin, September 20. Tho half-yearly meeting of the Colonial Bank was hold to-day, and was largoly attended. Tho Hod. G. M'Lean presided. The report, recommending a dividend of 7 per cent, was taken aa road. Tho Chairman, in moving its adoption, said although tho outlook vim not too promising, ib was not doomed necessary to reduco tho 7 per cent dividend which had boon p t»id for Iho past 13yeara, but when they thought of how other institutions had to reduce from 18 to 6 percent, a noto of warning was hardly necessary. Tho volume of business had boon fairly m^ini/ained. Tho Chairman then proceeded to oxplain tho oircumstaaces which led to tho proposal to amalgamate with tho Bank of Kow Zealand. When tho Govornmont guaranteed tho Bank of New Zealand it wav folfc a cruel blow was being struck rib the local institution in providing ifc with money ab a cheaper rate than the Colonial could oxpect to get ib at. The Bank's position had been steadily strengthened in London, and it now held there L 350,000 doposits, the duo datei of which extended over five years. When the guaranfcoo was given tho Bank was oxcoptionally atrong, and tho Government had been applied to for a sharo of tho banking account, and the gonoral manager's letter was read in which ib waa stated that there was no objoction to appoint un auditor from timo to timo to report on the condition of tho Bank, but they would indeed be glad if such woro done. The chairman continued that it would be soon thafc the Bank courted the fullest enquiry. Tho scheme for amalgamation was then prepared, designed to effect fcho building up of a strong bank, and tho separating of dead assets. Ho proceeded to show tho effect of tho flcheme, and then rovipwod the earning power of the Colonial Batik. Tho difficulties of the Bank of New Zealand and the crisis in Australia had thrown a suspicion on all banks. It was foraeon that the guarantee might acb prejudioii ally, and a policy of prudenco hud to bo adopted, Bomo hundreds of thousands of the boot business in tho colony had to bo refused * because the Bank had to puraue a Conservative policy. There was no disguising tho fast that an augmentatton of the Banka' capital could now bo most advantageously employed in increasing and consolidating their valuable buBino«B. Tho proposals wero in the in*

toroate of the shareholders of both Banks and the public. Although tho prosont attitude of the Government may prevent its being oirriod out, tho amalgamation sehomo is on record. Tho correspondence with tho Treasurer was then roid, and the oliDlrmnn continued that tho Colonial had virtually withdrawn beoauso tho shareholder should not bo adversely affected by the liquidation of the Assets Company, and because tho Government's influence already provided ought not to bo inoroaaed. Mi Keith .Ramsay seconded tho adoption of tho report, and oxproaaod the opinion that tho proposed amalgamation w>iB politically bad, and morally wrong, lie had boen glad indeod that tho Govornmont had put an end to tho mattor. Mr Watson also spoko against amalga* mat ion. Mr W. Bain, lnvorcargill, said ho had come prepared to speak and cast a largo number of shares against amalgamation. The Bank of Now Zealand might bocomo a fc>tate bunk, bub tho Colonial would ahvuys be tho peojjlo's bunk. The roporl and 'oalanoe^shoot wore adopted. A vote of thanks waa passed to the directors and officers. Tho Chairman, in replying, said the Bank was tho strongest in tho colony. Tho Bank of New South Wales proper* tion of capital and reserve fund to liabilities whs 13*48; tho Union Bank, 12*18 ; tho Bank of Australasia, 15*04 ; the Bank of Now Zoiland, 9*43 ; tho Colonial Bank 3 7 33 (applause) ; and tho National Bank, 12*31.