THE BANK OF NEW ZEALAND.

New Zealand Herald, Volume XLV, Issue 13925, 5 December 1908, Page 4

THE BANK OF NEW ZEALAND.

The banking business is the barometer of trade and commerce, and the report of the Bank of New Zealand shows that while the Dominion is safely weathering the - difficulties of the past year there it still need for an intelligent economy. As we have frequently pointed out," the financial prospects of the country were never doubtful provided a reasonable forethought were exercised ; this still holds good. Prices have rallied in some important lines, the season is promising, . and there are indications of industrial revival in Great 'Britain and America, which cannot but affect favourably our general export trade. But the local financial stringency is not altogether over, although, as the chairman of the Bank told the shareholders yesterday, " money in London is a drug on the market." New Zealand ought, therefore, to avoid the needless extravagances which exhaust the capital that ought to be devoted to reproductive undertakings, for in this way permanent prosperity can best be encouraged. The Bank directors are discussing the advisability of increasing its capital, but this will certainly not be decided upon without the fullest consideration. The soundness of the Bank is of the greatest value to the business community, and while there 'should be no hesitation in providing the country with ample capital for all legitimate operations it is always good policy to avoid "booming," and the inevitable reaction therefrom. The Bank of New Zealand, in which the State itself is very heavily interested, exercises a great influence upon the commercial and industrial life of the Dominion. To foster and encourage business upon a safe and secure basis is the duty of such an institution, and it is a pleasing reflection upon our national prosperity that the Bank of New Zealand has been able to do this 'to a very considerable extent, while safeguarding the. interests of its shareholders.