NATIONAL BANK AFFAIRS.

New Zealand Herald, Volume LII, Issue 15998, 17 August 1915, Page 8

NATIONAL BANK AFFAIRS.

I PROSPERITY OF DOMINION. 1 I MR. R. LOGAN'S REVIEW, j i [FROM OCR OWN" CORRESPONDENT.] j London*. .Tulv 9. j The for{v-''iirii ordinary general meeting! of the X; al Bank of New Zealand was j the occasion for a review by Mr. Robert i Logan of the progress and prosperity of i the Dominion. With regard to the future, j he said the outlook was dark, and New ; Zealand could not wholly escape her share j of the troubles arising out of the world- j war. I Mr. Logan said:—"New Zealand is I primarily an agricultural country, and voa j will recognise what that means when I j say that the exports of produce last year • amounted to about- 27£ millions sterling, j as compared with 23| millions in the pre- I vious year. The imports into New Zealand, on the other hand, showed a decrease ' from 22} to nearly 20£ millions, so that the surplus of exports, which last Tear amounted to £1,150,000. increased"' to about £7,000,000 in the year ended March 31 last. Since the war began New Zealand ! has had a period of unexampled prosperity. Last year I drew attention to the newindustry of fruit-farming, and expressed the expectation that the produce would in a few years form an important addition to the exports of New Zealand. The area! under —chiefly apples— 1910 was 31,700 acres, and in 1914 it was 42.300 acres. One hundred trees to the acre is below the average vet that gives 1,000,000 trees added 'in four years and when six years old each tree should yield 20 a tree. Further much land previously regarded as of little value, which required seven to ten acres to support a single sheep and was assessed dear at 7s 6d per acre, has been found most suitable for this industry Where trees are in full bearing it- "is estimated that a small family can live on eight or ten acres. Barren hills are being changed into fruitful orchards— an economic waste into a valuable natural asset. Question of Income Tax. The paid-up capital remained, and was remain for some time > at £750,000 The reserve fund, with the appropriation now proposed, would amount to £685,000. Almost the whole of that sum was invested in securities, and the directors had ascertained their present \alue with what accuracy they ♦ C £? i a U u t0 u tt , e best of belief they had brought the securities well within the valuation at which they were stated m the accounts. There was, however a question which they had to considernamely, whether it was advisable to continue year after year to make such large additions to their published reserve fund and whether they should not, in common with certain other Australian banks, restrict their investments, and use a certain portion of the reserve fund in their business. Their investments had largely increased, and the increase was entirely accounted for by investments in the war loan and in Treasury Bills. There was an increase of £17.000 in gross and of nearly £5000 in net profit, which was in the circumstances, very satisfactory' The increase would have been greater had it not been for the unavoidable increases in income tax. amounting to £3716, and in note tax and land tax in New Zealand, which accounted for very nearly £5000 more. The dividend and bonus were paid free of income tax, but he did not think they could continue to pay them free of income tax. The proprietors would observe a paragraph about Mr. Coates and his successor, Mr. Duthie. The directors were very glad to have Mr. Coates with them to assist, them with nis comprehensive knowledge of New Zealand, and thev believed that Mr. Duthie would fully justify their choice of him as Mr. Coatee's successor as general manager.

Outlook for the Future. "As regards the outlook," said the chairman, "I am afraid I must confess to being very much in the dark. If the war continues into the next export season of the Dominion it must further enhance the value of the Dominion exports, while if an earlier peace ensues it will leave the economic conditions of Europe so disorganised that for a time a peat demand must still exist for New Zealand produce. But a time must come when the unparalleled waste now going on in the world ".vi!l produce a period of stringent depression. All that can be said is that New Zealand cannot wholly escape. During the last ten years the New Zealand Government has been wise and prudent in its financial affairs, and I feel that the Dominion has the ability to cope with any economic position. Air. Thomas Sea bo seconded the motion for the adoption of the report and accounts. It was unanimously carried, and a dividend at the rate of 12 per cent, for the six months ended March 31, together "with a bonus of 1 per cent, for the year was declared..