BANK OF PORT NICHOLSON.

New Zealand Gazette and Wellington Spectator, Volume I, Issue 20, 22 August 1840, Page 4

BANK OF PORT NICHOLSON.

CAPlTftL^£sp:<SH>;nN 2.500 SHARES OP , w~- *"^i£2OrE&CH; "' %t ; T

To be increased at the discretion of thp^Birectors, by-the.is3ue.of^l.opoadclitt6nil-Shares, ; to be. sold for the benefit* of the Bank. -

'The advantages produced by a Local Bank, both as a ''profitable investment of and' as a means of accommodation to the community, are too well established to require any Comment at present. There is not a single British Colony/, of any importance without at least one' such "Bank, and in every instance these institutions are no less a source of the* Shareholders than of- benefit to the community.' In -fact,- while -the -Banks which have been' established-- by English capital* in the Australasian Colonies divide at the' utmost from 7 to 10 per cent., the profit of theJkocal Banks average from 15 to 20 percent. This difference is easily accounted for-: every individual -in a Colony- naturally prefers a Bank with whose Managers and Proprietoxs^he^Js acquainted, and v in^which he himself mayEave a direct interest, to one conducted by strangers. In order to secure to the proposed Bank this advantage in the fullest degree, the shares have been fixed at such an amount, as to allow any Capitalist in the Colony to become a Shareholder. Every one, therefore, will have. an interest in the .prosperity and staßility of the Bank, and will give it a preference both in making deposits and circulating its notes.

The Capital of, the Bank has been fixed at £50;00'0j a sum which it is assumed will be sufficient for the present wants of the community. This Capital can, however, be increased at the discretion of the Directors, by the issue of 1.000 additional Shares, to be disposed ofr-tfor' the benefit of the ..Share--holders ; and it is proposed .that the Dee'd r df Settlement shall contain a provision, authorising the majority of the Shareholders to increase the Capital to such further amount as may in their opinion be justified by the augmented demands of the Colony.

The business of the Bank will be strictly that of a Bank of Discount and Deposit. The rate of discount to be 10 per cent. *; and 5 per cent, will be allowed upon deposits for a longer period than a month, — not to be withdrawn under 10 days' notice.