FINANCE AND TRADE.

New Zealand Times, Volume LXX, Issue 3784, 5 July 1899, Page 7

FINANCE AND TRADE.

“New Zealand Times” Office, Tuesday evening. The Customs returns for to-day amounted to £1364 Os 6d.

The balance-sheet of the Bank of New Zealand for the' year ended 31st March, 1899, was laid on tho 'table of the tiodse, "in compliance with the Banking Act, and the document is one that will give general satisfaction. There are two features in connection with tho balance-sheet upon which the responsible officers of the institution are entitled to commendation. First, the netprofit for tho year is Very large,' show-’ 'mg that prudent management has been exercised, also that the bank still bolds the confidence of the people " to tho fullest extent. Secondly, the", make-up of the halance-sneet is a vast improvement upon all such documents previously issued by tho bank. More detailed information is given; the expenses are set out very fully, and the nature of the assets are given in great detail.’ ' Usually these items are lumped and set out in groups, making it very difficult for anyone to analyse the figures. A complete and detailed statement such as is furnished in the document under review will go a long way towards fostering and increasing the confidence of the public. Tho net. profit of the bank for the past*' year was £93,920 Os Id, after, providing £BO,OOO interest on the £2,000,000 guar-’ nnteed stock, and £17,500 dividend .at 3.J per cent, on the preferred shares subscribed for by tho colony. The whole of this profit goes in reduction of dead assets, and is applied- as’;, follows :- ' - • ’ , £ s . d Payments to Assets Board 50,000 ' 0 .0 Written off Estates Co,assets in liquidation 30,017' 3 2 Written off debenture conversion account ... 8,302 10 11Written. oft Colonial ■ ■ - Bank, goodwill- account 5,000 O' 0

93,920 ' 0 1 This does not disclose the full extent of the earnings of the bank. The-net profit was really .£191,420, and if the £2,000,000 guaranteed stock is treated as a Government' deposit, which' is really what it is, then" the actual'profit, after making provision for interest on this, is £111,420, which would be sufficient, had the hank been relieved of itsvaluelesa assets, to pay a dividend on. the actual capital (preferred and .ordinary) of £912,354, at the rate of very nearly 124 per cent. This-is the position, and it must be admitted that it is an excellent display. The profit of £191,420 compares with £182,532 in 1898, and amply confirms the opinion expressed by the directors that the purchase of tho Colonial "Bank business would enable tho bank to earn a profit of £121,000. It will he: noticed that the' hank has taken £43,920 out of profitsto write down certain assets, and it may bo pointed out here that, had not this power been given in the Banking Act Amendment Act passed last year, the shareholders would have received, as they were entitled to receive under the Act of 1895, ''a dividend of 5 per cent., but in the interests of all concerned the writing down is much to ho preferred. During the past three years the bank has applied a very large sumin writing down. The amount stands, ns under : ■ To Assets Realisation Board ... 150,000 "Written off Estates Coy. assets , :30,6J7 Written off debenture conversion account,' 18,435 Written off . goodwill .account . 5,000 £204,052 And in addition' to this, ample provision has been made for all bad and doubtful debts in current - business 1 , while all fixed obligations have been fully met. . The gross profits for the, past year amounted to £379,331, but out of this there bad to be paid the expenses of management, which aggregated £187,911, or about- 50 per cent, of the gross profits. The salaries and allowances absorbed £116,358, and this item compare?; very favourably with those shown by other institutions. The directors, as is well known, have made, certain reductions in the staff, which has been re-organised, and this is estimated to bring about a saving of about £IO,OOO in future years. Last year’s figures were unaffected o- the reduction of officers. The remuneration of directors amounted to £2375, and perhaps no other colonial institution pays its board -so handsomely. Rent, stationery, travelling and general expenses absorbed £41,732, and audit expenses amounted to £2726. This is an exenditure that no other colonial bank is called upon to face. From fifty to one hundred guineas is about what auditing costs other banks. Rates and taxes amounted to the respectable sum of £20,221, nearly the whole of which has been paid in New. Zealand. .The compensation paid to the ex-president on being denrived of his office amounted to £4500. It will be seen that filrther economies will be shown in next year’s balance-sheet, and tho amount should not bo far short of £15.000. The business of. the hank has been well maintained, and the best use has been made" of all credit. A gdfid deal more money has been invested in bankers’, securities in London, and this is a ■ sound policy. A comparison of the leading figures in the balance-sheets of 189 S and 1899 are appended.

The deposits show a substantial Increase, and the note circulation is also larger. Coin and bullion have ' shrunk considerably, but this is more than made up in money at call and short notice, which shows, an appreciable increase. Advances have decreased by £256,083. but it is hardly likely that’this accrued through any loss of business with the public ; it is more than probable that temporary advances to the Government have been repaid. The Estates Company assets in liquidation have been reduced to £455,063 (book value); in 1897 this amount stood at £580,065. Colonial Bank property and goodwill are also substantially reduced. The bank is now on a fair way, and if let alone by politicians and others it will recover its position in time. The business is being well handled,-and : each year sees substantial progress. . . ' Messrs Freeman E. Jackson and Co.‘. in conjunction with Messrs Abraham and

Williams, report on their Johnsonville stock sale as follows :---Fat cattle were in shorter supply, and sold steadily throughout at better rates than last week. The quality generally was good prime ox beef, and made 17s the 1001 b., Prime cow beef brought up to 14s ; best bullocks reached £7 to £8 ; others, £6 to £6 12s 6d ; prime cows, £4 10s to £5 2s 6d. The entry ol sheep was small, but equal to requirements. There were no heavy sheep yarded.’ Small fat wethers brought 14s 3d to 14s 9d ; others,, 13s 6d .to 13s 9d ; medium ewes, 12s lid; lighter sheep, 11s 6d. A few pork pigs were sold at 'rom 19s to 235. '■ ■ • -

189S 1899 Ordinary capital f.. ' £■ ■ ■ X : 393,042 ■ms Reserve fund 23,474 Note circulation 593,905 666,221 Bills payable 1,219.926 ■ 698,355 Deposits ... 7,626,140 Other liabilities 260,202 Bills rediscounted 34,375 4,764. Coin and bullion Money at call, etc. ... 1,445,861 1,460,309 1,284,921 l,803,89t Colonial Government securities 678,248 678,2*18 Assets Board deb. ... 1,880,285 1,805,285 Municipal securities 19,453 19,553 Other securities 31,900 37.20C Discounts 1,719,930 1,613,911 Advances ... ... 4,281,319 4,025,236 First call recov’ble 1,534 425 Estates Company Assets in liquidation ... 540,443 455,064 Debenture conve'rsion account ...s 58,312 50.01C Landed property 431,837 415,577 Colonial Bank property 101,533 95.457 Goodwill account 75,000 - 70,000