BANK OF PORT NICHOLSON.

New Zealand Gazette and Wellington Spectator, Volume I, Issue 22, 5 September 1840, Page 4

BANK OF PORT NICHOLSON.

CAPITAL £50.000, IN 2.500 SHARES OH

£20 EACH; To be increased at the discretion of the Directors, by the issue of £1.000 additional Shares, to be sold for the benefit of the Bank.

The advantages produced by a Local Bank, both as a profitable investment of capital, 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 profit to 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 the Local Banks average from 3 5 to 20 per cent. This difference is easily accounted for : every individual in a Colony naturally prefers a Bank with whose Managers and Proprietors he is acquainted, and in which he himself may have 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 stability 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 £50.000, 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 of for the benefit of the Shareholders ; and it is proposed that the Deed of 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 ; and 5 per cent, will be allowed upon deposits for a longer period than a month, — not to be withdrawn under 10 days' notice.