Page 2 Advertisements Column 3

Oamaru Mail, Volume IV, Issue 1104, 1 November 1879, Page 2

untoward state of the Colony (luring the past six months, and the fact that during that portion of the year business is always less active than during the wool and grain season, will sufficiently account for the diminution which appears in some of the items in the balance-sheet. There has been a reduction in the note issue of about LCO.OOO, and of over LSOO.OOO in bills payable in circulation, which, :;!thmii-h resulting in lessened profit, may '•«- .iceci-d as the best evidence of the mei-surcs adopted by importers to reduce their heavy stocks. There has been a reduction in current' accounts of a little over a million, which is largely due to fluctuations in Government balanced, the remainder being the natural outcome of tiie general depression caused by ii.i'l harvests, low prices, ami reclamations. >ll ..•'/ii.iLnmeiit'j of wool and grain. Theo: the Home market having been favorable lor the realisation of securities, advantage was taken of the opportunity to realise the bulk of the Government bonds held by us at last balancing period, and the proceeds have been temporarily utilised, in strengthening our coin and cash balances at banker's, pending a favorable opportunity for re-investment. Our coin in the Colony at date of balance amounted about 1.'.11K1.U00, and at the Hank of England LI, 100,000. Our lessened liability in London accounts for the diminished amount of bills receivable and securities held there. The contraction of our advances, it will be seen, approaches the decrease in our current accounts, to which I have already referred, and is in a great measure the effect of largely-diminished purchase of bills in London drawn on the Colonies—another evidence of the wholesome and timely check tiiven to a previously too-extended importation. Shareholders will have reason tobegratified at the large addition proposed to be made to our reserve fund, which will now stand at L 555.000, and to which it will be the [>olicy of the Board to continue to make such additions from time to time as our profits may warrant. Every addition to this fund not only increases the intrinsic value of your shares, but increases the dividend-earning power of the J3ank. We have been asked from tinje to time whether there is any special investment of this fund. I need hardly tell you that there i 3 no uniformity in the practice of Banks on this subject, but the majority follow the course we have adopted of making no special investment of the reserve fund. Practically, although it swells the general dividend-earning power of the Bank, we usually hold Government securities to a larger amount than the reserve fund, and, though at present this is not the case, the deficiency is more than represented by the largely increased amount of coin and cash at banker's. I assume that the real purport of the question is, Does the Bank hold such reserves, or immediately convertible securities, as afford reasonable protection in all contingencies ? and I think no one will doubt this if the balance-sheet put before you to-day is examined and understood. Another question has been asked : I)ocs the bank hold any shares in any unlimited company? The answer is simply that it most certainly dees not. It has also been asked if it is intended to register under the Bank Act which is now being considered in England, but as our liability is already limited tinder an Act of incorporation, and j we have no information as yet of the provi- ! sious of tiie propo.-ed Bill, no consideration ; lias been given to the subject. It remains ;or me now only to close these remarks, and I may be permitted, in retiring in ordinary rotation as one of your Directors, and consequently vacating the President s chair, to embrace the present opportunity to express the conviction I entertain that the severe check which the Colony has sustained during the past year will be attended witn the most beneficial results to the community generally, as tending to lessen the over-speculative spirit which I previously existed, and to lead all engaged in business to confine their operations within more legitimate limits. We have in the Colony of New Zealand every element which leads "to and secures prosperity. Climate alone would ensure its future greatness, fcr we know by statistical proof that no country | in the world lias greater agricultural and pasI toral capabilities. And it is lh< Colony upon | which both the capitalists and the laborer in j the Mother country now look with longing I eves as the refuge where to find a new field !of enterprise, and create a new home. A\ itli j the progress of tho Colony, which nothing, I feel assured, can retard, will also progress this institution, and shouhf you at a futui e time again do me the honor of electing me to a scat at your Board. I have no misgivings ! but I shall then find this bank still maintaining. under my successor, the position of prei cedence which, I am proud to say, it held when it devolved upon me to occupy this chair, and which it still holds on my retiring from it. I now beg to move, " The adoption of the report and balance-sheet." Mr. Howard :—I have great pleasure in moving a vote of thanks to the directors and otiicers of the bank. The report which I hold in my hand, and which has been so clearly introduced by the chairman, is not one of mere change. No better evidence could be found of ability ar.d sound judgment guiding the a::;t;rs oi the institution. When one looks at the magnitude of the figures submitted in tiie balanced statement, representing on both sides of the accounts over ten millions; and when we further consider that we have been only IS years in ex? isteuce, I venture to say that no suoli progress and success arc to be found in any of the other British Colonies. Bearing in mind the trying and anxious times through which the bank has been safely steered—each half-year appearing to raise it to a prouder position than the previous one—l am sure there is not one in this inlluestial assembly of shareholders who will not heartily agree to this vote of thanks to the Directors and otiicers for their efforts to promote the interests of the institution, and, especially, to the general manager, Mr. Murdoch, for his able and careful management of its affairs. We arc now reaping the benefits of the ability, judgment, and prudence which have steered us through a period of general commercial disaster. I have the greatest pleasure in moving this vote of thanks to the Directors and otiicers, to which they are justly entitled.—(Hear, hear.) Mr. J. Batger seconded the motion, which was carried unanimously. The Chairman r-jturned thanks oil behalf of the Board «/t I >ire,. The General Manager returned thanks; for himself ami the staff of the bank. He said the renewal of the confidence of the shareholders would be an additional incentive to increased efforts to promote the interests of the bank. The scroll minutes were read. This concluded the busiucss. 350