BANK OF NEW ZEALAND.

New Zealand Herald, Volume LVI, Issue 17211, 18 August 1919, Page 6

BANK OF NEW ZEALAND.

; gft? \ CALLING UP OF CAPITAL". ORDINARY SHARE ISSUE. >■; ' I £3 6s 8d IN APRIL NEXT. |;by telegraph.—PßESS ASSOCIATION'.] WELLINGTON, Saturday, The authorities of the Bank of New Zealand state thai the Minister for Finance has sanctioned the bank's proposal to call up £3 6s 8d per share of uncalled capital on 150,000 ordinary shares of the bank at persent paid up to only £3 6s 8d per share. It was agreed between holders of ordinary shares arid the board in 1913, when the bank made its last issue of additional capital, that this uncalled amount should be called up within seven years, and the present timewhen banking institutions in all the leading countries in the world are all strengthening their capital—is considered a suitable juncture at which to make the call. ( The call will be made in January next, and will be payable in one amount of £3 6s 8d per share on April 1, 1920. After payment has been made all ordinary shares of the bank will be paid up to £6 13s 4d per share. ! In his review of the balance-sheet at 1 the annual meeting of r.he proprietors of ; the Dank on June 13 last, the chairman of j directors, Mr. H. Beauchamp, said tl.-dt ! the seven years within which the board ] agreed that, subject to the approval of the j Minister for Finance, the bank's uncalled capital—£3 6s 8d per share on 150,000 j ordinary —should be called up exj pired at the end of 1920, and shareholders | were beginning to inquire when the call | was likely to be made and as to the terms ot payment, so that they might arrange their finances in anticipation. More than a year ago the board came to the conclusion that the time was in sight when this capital could be advantageously employed, and the Minister for Finance was accordingly approached in April, 1918, to approve a proposal to cal.' it up and make it payable in four equal instalments 6pread over the period from April 1, 1919, to October 1, 1920. The Minister replied that the matter had received the consideration of the Government, and thai, the question should be brought up again in course of a few months. Accordingly, in November last the board again approached the Minister, but was informed that it was regretted the proposal could not be agreed to until all war loans had been raised. A few months later, after the public announcement of the raising of further capital by the National Bank of New Zealand and the Union Bank of Australia, ttie board again addressed the Minister, pointing out that the restrictions imposed on this bank placed it in a disadvantageous position as compared with the institutions mentioned, and again requesting that the consent of the Government be given to the calling tip of the capital. It was, however, advised in reply that the matter must stand over until the return tc New Zealand of the Prime Minister and Minister for Finance. "When the arrangement was made for the calling up of the capital within seven years, it received the approval of the then Minister for Finance, who, however, pointed out that he was not in a position to bind his successor. Nevertheless, it was considered ' guite improbable ±hat consent would be withheld by the present Government. The position being as stated, the board was unable in the meantime to move in the matter of making the calL