A NOTABLE CENTENARY

New Zealand Herald, Volume LXXIV, Issue 22822, 1 September 1937, Page 17

A NOTABLE CENTENARY

THE UNION BANK OF AUSTRALIA

OUTSTANDING RECORD OF PROGRESS

Much that passes in the aflairs of men is evanescent. As a truism this is more applicable to human beings themselves than to institutions served by them in the course of their day and generation. While men tend to grow old and pass on, the reverse is often the case with the objects of their life work. Banks, for instance, as typical organisations to which generations of first-rate men have given their best service, provided sound founda-tions-have been laid, should become more mature and more vigorous with the passage of time. This is true of The Union Bank of Australia, Limited, which this year celebrates its centenary.

solved itself on April 30, IS3B. On the next day the Union Bank took over its premises and commenced business. Thus the first branch of the new bankwas opened in Launccston. Other branches quickly followed at Campbelltown, Hobart town, Melbourne (then known as Port Phillip)—the latter on October 8, IS3S —and at Sydney on January 2, 1839. The New Zealand Land Company was by this time actively engaged in promoting the settlement of New Zealand. It made overtures to the Union Bank for the establishment of a branch at Port Nicholson (Wellington) and the first branch in the Dominion made its appearance at Brittania, a settlement on the Petone beach in March, 18-10. Late in 18-10 this office was transferred to a site in Lombard Street on the opposite side of the harbour.

From time to time it is of value to take stock of these institutions of ours, whose roots are woven into the very foundations of the communities they serve, and a centenary occasion provides a peculiarly appropriate opportunity for doing this. We must tlieu turn back the history of the Union Bank during the past hundred years, and in doing so refer to its own records. For these march with the people's development, and. brimful of a story of human interest, they, while being the bank's own history, accurately rellect the historical development of the communities the institution has served.

in 1852 a change to Willis Street was made, and finally—in 1876—t0 the present quarters in Lanibton Quay. It is of interest to record here that the first manager of the bank in Now Zealand left England in the ship "Glenbervie/' on October 17, 1839, with the safe and initial supply of cash on board, and arrived in New Zealand on March 7, 1810. Thus it was that the Union Bank took a leading part in providing banking services for the earlv settlers, being by many years the first of the existing banks to establish in New Zealand.

These were times of expansion and consistent demand for banking services. In 1542 a branch was opened at Nelson and in 1 SIS at Auckland, followed by Lyttelton in 18.30. Duneilin in 1856, Christchurch in 1857. Napier in 18.jS, Invercargill in 1861, Timaru in 1867, Gisborne and Oamaru in 1873 and so on.

A bank is a living, vital organisation, 110 mere money lending machine. It provides all kinds of services and facilities for the individuals anil institutions with which it is in contact. This is, particularly true of modern banks, 'Which, in this age of competition, have learnt the lesson, as never before, that only as they give their best do' they become entitled to the people's confidence and trust. J his is the foundation of banking policy. From the point of view of New Zealand the centenary is of more than usual interest, since the Union Bank was the first of the now existing banks to commence operations in the .Dominion/The story Oi those eany days is enshi/ined in old books and records, which in themselves are a rich mine of information and a store house of historical interest, not only to the historian,- but also to the descendants of those who have played their part in making that history. Mr. Philip Oakdon, a pioneer of Launceston, Tasmania, was the prime mover in the formation of the bank. As a director of the Tamar .Bank of Launceston, which had been faced with many difficulties and was lacking in

The Union Bank bad right of note issue in New Zealand when it began operations, but later the Government desired a State issue and in 1850 established a State Bank (The Colonial Bank of Issue) as the solo note issuing authority, the Union Bank's right ol issue then being abrogated. This Bank of Issue did not meet the requirement* of the early settlers however, with the result , that in 18-3(5 it was wound up and the right to issue notes bv the Union Bank restored. The directors of the Union Bank to-day recall with pleasure - that never at any time throughout its history has there ever been any question as to the safety of the Union Hank note issue. The bank's records in general give a striking picture of the growth of the Colony—and later Dominion —oyer practically one hundred years, a period of great" development and expansion

resources, lie, in concert with, his fellow directors, felt some doubts as to its future. Accordingly in IS3? he journeyed to London to negotiate with gentlemen of standing and influence with a view to the formation of a large joint stock bank to commence operations in, and assist in the development of, the Australian Colonies, and, incidentally, to take over the Tamar Bank. Air. Oakden succeeded 5 in obtaining the interest and support of Mr. George Fife Angas, who had been instrumental in the recent establishment of the South Australian Company and the Brink of South Australia (absorbed in later years by the Union Bank) for the development of the new Province of South Australia. The time was opportune for the favourable consideration of Air. Oakden s proposal and as Air. Angas put it, they proceeded, "to lay the loundation of this projected company 011 such principles, and with such men as will glorii.v God and promote the weal of man, and -at the same time tend to benefit South Australia." A further extract from Air. Angas' diary notes of July l.'J, 1537, snccLnctlv describes 'the actual formation cjf the bank and the principles ho had in mind for its conduct: — "The Union Bank of Australia is actually formed, the prospectus is printed,' the directors appointed, the office taken, the clerks at work, and many shares actually applied for. Every essential principle of the company is agreed upon, the proposition of the Tamar Bank to ioin us has been accepted. Thus has this , company been formed in a couple of weeks, and the directors, solicitors, secretary and accountant are now acting. 'J here were two grand objects I had to gain in getting up this great company.' First, the protection of the Bank of the South Australian Company from competition. Second, the appointment of such a body of directors as would select and appoint pious men to places of trust at home and abroad and carry on all their operations 011 the principles of justice, integrity, and morality; aml especially with a view to the best interests and moral welfare ol colonists."

with all the ups and downs natural to the various phases and problems. Ihe provision of banking facilities lollowed inevitably the demands of settlement and population. That sound foundations were lriid is evident from the development proceeding to-day'in almost every phase of industry, both primary and •secondary. The great traditions of the bank and its policy of service to the community are still carried on. It has marched with the times and no problem has been too difficult for it to tackle. It was one of the few banks operating in Australia which passed through the severe banking crisis of 189»3 without any suspension of its services, exemplifying the value of the prudent policy which has invariably been followed, indeed it has come through every financial crisis of the past century, and the period of the Great \\ar, unshaken. Never during its long Instorv has it failed to pay a dividend. The total number of its branches and agencies is now over 250, while the staff is upwards of 1500. During the hundred years of its existence' manv 1 aitliful set\ants ha\e <n'ven the best years of their lives to its service and to the service of the community and have passed on. A lon come and go but tradition remains and to-day it can be truly said that the present staff is fully maintaining the great traditions of the Union Bank. Alaior-General Sir John Davidson, K.C.AI.G., C.8., D.5.0.. is chairman of directors; Air. A. W. AlcNicol is general manager for Australia and ?scw Zealand; Air. T. P. Fotheringham is inspector for New Zealand; and Air. E. T. Porter is manager ,of the \Ycllington branch.

AUCKLAND BRANCH

THE ORIGINAL BUILDING LONG PERIOD IN QUEEN STREET The Auckland branch of the Union Rank of Australia. Limited, was opened on January 11. 1818, by Mr. A. Kennedy. who had arrived from Sydney the previous October, after a \o\age of 11 days. The records do not disclose where its*first office was, but later in the same year the branch was removed to a twostorey brick house in Princes Street, next to what is now the Northern Club. This building still stands. The Princes Street building housed the bank for 10 years. In 1857 the directors acquired an ample site occupying the north-western corner of Queen and Victoria Streets, but some time elapsed before the present substantial building was erected there. It was occupied on May 10. 1804. Outwardly it has been little altered, but the interior has undergone many changes to cope with the expansion of business, and in fact lias been almost transformed in the course of reconstruction. The first manager, Mr. Kennedy, remained in charge until 1863. He was succeeded by Mr. A. Iverr, who remained until 1867. There is a gap or three years the record, and the list of subsequent managers is as follows:--1370 Mr J. B. Braithwaitc; 18/o. Mr. t pi "Founds; 1882. Mr. C. B. Grierson- 1887. Mr. A. W. Thomson; 1801, Mr W H. Turner; 1898. Mr. W. 10. WomWd; 10W. Mr. F- ■ iqog Mr. W. H. T'Uiin; 1932. Mi. N. \ Hepburn. 1935. Mr. T. F. MeMullen; 1937. Mr. W. Morrison. The Union Bank, was authorised by proclamation in 1856 to iss.ue. notes within the Colony of .New Zealand. Curiouslv, it was not until August, 1857, that it began to pay interest on fixed deposits.

Actually, however, the bank's, prospectus was not publicly issued untsl September 1/ 1837. The initial capital was £500,000, a large amount lor an Australian bank in those davs, but the film was judged necessary to advance tlia development of the young . and promising colonies as rapidly' as possible. Mr. Oakden returned to Launceston nfter the successful formation ot the Union Bink,"and the Tamar Bank dis-