BANK OF NEW ZEALAND.

New Zealand Herald, Volume XLIX, Issue 15168, 6 December 1912, Page 8

BANK OF NEW ZEALAND.

LEGISLATION NEXT SESSION

NO DETAILS AVAILABLE.

[BY TELEGBAPK. ASSOCIATION.] Chiustchurch, Thursday. Tms statements made at the half-yearly meeting of the shareholders of the Bank of New Zealand were brought under the notice of the Prime Minister (Hon. W. P. Massey) by a representative of the Press to-day.. '■ ' T " There is nothing I can say," Mr. Massey remarked, " except that I know that there will bo some very important banking legislation to be submitted to Parliament next session, consequent on the great' development of the country and of the bank."

On the subject brought up by Mr, Watson at the meeting of tho shareholders of the bank with reference to compensating shareholders for losses, Mr. Massey said that the question had not been submitted to tJje Government, and he did not think it advisable to discuss it.

The Hon. W. Fraser (Minister for Public Works), who is well known as a close student of financial matters, was also approached on the- subject, but he could not be induced to go further than the remark : "It is pleasing to note from tho chairman's remarks that the bank ha» had a satisfactory half-year."

THE PROPOSED EXTRA CAPITAL. APPROVAL IN AUCKLAND. The announcement by the chairman of directors of the Bank ( of New Zealand, that power to increase the capital of the bank will be sought next session of Parliament, is viewed very favourably in Auckland. Mr. George Elliot, president of the Chamber of Commerce, speaking to a Herald representative on the subject said:— ' "From every point of view the proposal seems to be a good one. It should meet with the entire approval of tho public, especially of the clients of the bank." Presuming that it was decided to add £1,000,000 to the bank's capital, Mr. Elliot said that the institution would then havo resources totalling £4,250,000, and the addition to its funds would'immensely strengthen its position to meet times of: financial stress and trouble. To his mind, the advantages of carrying out the policy were very groat, and there could be no objection to it.

Regarding the reception which would be given to a now issue of shares, Mr. Elliot expressed entire confidence that no difficulty would bo experienced in obtaining the additional capital. The bank was doing immensely well, as was shown by the fact that in the last 12 years a reserve fund of £1,250,000 had been accumulated, and the public had now full confidence in the stability of the institution. In such circumstances there would be no hesitation in subscribing the contemplated issue of shares, provided the terms were sufficiently attractive. No doubt the directors would see that the rate of interest was Sufficiently high, and if this was so there would be no difficulty at all in raising the money.