COLONIAL BANK.

Otago Daily Times, Issue 9389, 31 March 1892, Page 2

COLONIAL BANK.

1 The thirty-fifth half-yearly meeting of the | proprietors of the Colonial Bank of New . Zealand was held in the Banking House yes- , terday. The Hon. George M'Lean, M.L.C. r (chairmanof the board), presided, and there were 1 about 30 proprietors present, including the f ol- • lowing directors: -The Hon. W. H. Reynolds, ". M.L.C, the Hon. W. Downie Stewart, M.L.C, , Dr Hislop, Messrs E. J. Spence. and P. C \ NeiU. l ANNUAL REPORT. The half-yearly report of the directors, which . was taken as read, was in the following ' terms:— f The directors beg to submit to the proprietors the accompanying balance sheet and statement - ll ccounts for the balf-year ended 29th February a. . The net profits for the half-year, after deducts ing interest paid and accrued on fixed deposits, a rebating bills under discount, and charging all s expenses of management, rent, &c, and duly a providing for bad and doubtful debts, amount to ... , ~, ~, j£l7 677 0 0 s To this has to be added balance from ' last half-year ... ... ... ... 7230 3 8 A ... \_ _ Z .£24,907 3 8 And there must be deducted tax on note circulation and property tax 2,190 JL3 10 c . Leaving available ...£22,716 910 i- Which the directors recommend to I be applied as foUows:— . To payment of divi- - ; dend at the rate of 7 ' per cent, per annum *> on the paid-up capiy TtaL. -_ "_ •••••214,000 0 0 i- lo balance to be carried forward... ... 8,716 910 -—■- £22,716 9 10 Upon confirmation by the proprietors of the foregoing appropriations, the dividend wiil be Sayable at the head office on and after the 31st Larch next, and at the branches on, receipt of the warrants. • Agencies of the bank wereopened at Ashiirst on the 23rd September, Waitara on the 13th October, and Inglewood on the 14th October of. n last year. c The Petone branch was converted into an agency on the 19th October last. • 2 _? on- "WiUiam Hunter Reynolds, M.L.C, ~ is the director who retires from the board at this • meeting, in accordance with clause 42 of the v de£ d, of settlement, and, being eligible, offers him--J self for re-election. • Both the auditors retire from office at the pre)t sent meeting; one only—Walter Hislop, Esq.—is if eligible for re-election, and he offers himself ir accordingly. ■-*■-. c GEO. M'LEAN, n Chairman. y Balance Sheet of the Colonial Bank op New Zealand, as at 29th February 1892, including JLondon Office at 30th November 1891. Dr i s d :- Capital, £2 paid up on 200,00 ft . * ' j, shares.... ... ... 400,000 0 0 f Notes in circulation. ... 118,792 0 0 l Bills payable and other liabilities 829,768 17 3 Deposits ... ... 2,238,026 3 2 f Balances due to other banks ... 486 19 8 ■I Reserve fund ... 50,000 0 0 0 Profit and loss ... 22,716 910 i "£3,659,790 9U ' Cr JE s. d. ' Coin—Bullion on hand and cash 1 balances at bankers 325,184 19 9 a Government seeur--1 ities, Consols, &c. £186,882 11 8 - Government Loans 403,333 6 8 ' xr-. -'_ •''.;, ' ~, — ; 590,215 18 4 JN otes of and balances due by other banks... 15,513 2 8 .Landed property and Bank premises..; ... 121,620 0 4 Bank furniture and stationery ... ' 9,918 15 7 i BiUs discounted, and all other _ • debts due to the bank, including remittances in transitu 2,597,337 13 3 £3,659,790 9 11 Profit and Loss Account. "?•. ' £ s. d. To dividend at 7 per cent, per annum at 31st August 1891 14,000 0 0 11 Charges for the half-year, including rent, taxes, salaries, remuneration to directors and auditors, and aU other expenses 3 at head office, 30 branches, and j Bagencies ..." ... 23,450 2 6 • " Tax on note circulation ... ... 1,210 0 1 » Property tax off paid-up capital ) and reserves to £9th February » p1892 T a-"* i" •" '" 95013 9 11- .Proposed dividend - at the rate of 7 per 5 cent, per annum on the paid-up » capital £14,000 0 0 I " Balance 8,716 9 10 '~ . — 22,716 9 10 j- "• . * £62,357 6 2 i Cr. . £ a d • By balance profit and loss at 31st - August 1891 21,230 3 8 n Gross profit for half-year (after ' making provision for bad and . doubtful debts, interest paid L and accrued on fixed deposits, i and rebate on bills current) i amounts to 41,127 2 6 '■ £62,357 6 2 ' Reserve Fund. To balance 50,000 0 0 £50,000 0 0 Cr" £ s d By Balance 31st August 1891 50,000 6 6 £50,000 0 0 Geo. M'Lean, Chairman. H. Mackenzie, General Manager. We have examined the cash and biUs on hand at head office, and compared the abstracts of balances from' the various branches, and certify tbe foregoing statement to be in accordance therewith and correct. Keith Ramsay, \ . ... Walter Hislop, / AudltorsDunedin, 9th March 1892. The Chairman, in moving the adoption of the report and balance sheet, said:—Gentlemen, the report and balance sheet have now been in your hands for some time, and if you have no objection we shaU take it as read. In the balance sheet there is no,feature of importance to which to direct your attention. A perusal of it will show you the sure and steady progress we are making. We have been able to pay the usual dividend, and carry an increased amount forward, besides putting aside a liberal allowance for bad debts. All this, seeing the competition we have had to meet' should be satisfactory to the shareholders. I must congratulate you on the smoothness with which our institution moves onward. I think the directors may take some credit to themselves for this, and for limiting the total of British deposits to an amount that cannot materially affect us, whatever lack of confidence in the colony may occur at Home. In connection with this matter, I am happy to say, however, that there has been no lack of confidence so far as our institution is concerned, for the total of our deposits has easily been maintained at Home, while in the colony deposits keep on steadily increasing. That our business should go steadily on without disturbance must be gratifying to you all, especially when we consider the financial disturbances that are takine place m the neighbouring colonies, and even in our own colony for. we cannot ignore the fact that considerable sums of English money are being called up and withdrawn from New Zealand to meet engagements coming due at Home which timid people are afraid to renew. That this nervousness will pass away I have little doubt, as the resources of our colony must assert themselves, and people at Home will come to believe that if any British colony is to be trusted. New Zealand is one of the first deserving ot their trust, and it behoves everyone who can contribute to this end, from the Government downward, to do so.—(The Hon R Oliver : ''Hear, hear.") I was asked a question at last meeting respecting properties held by this bank apart from our own premises Gentlemen, you are all aware we have to make returns of such properties to the Land Tax taLfflfi__s* Thd £"? *? °U l rlis* t: Xt am°<^ to 1.52,925 Phe highest valuation put on any one property is L 3279, and the lowest Ll From the valuations of the Land Tax department which are now coming in, the department S appears to have a better idea of thelfworth than we have; but we mpa*. .-. Ji* 1 _& own values, and if the^artment Xe°iro°u_ of acquiring the properties they have ,'ower under the act to claim them, and we dfil hi quite satisfied if we c-e. ™-- V. , a- be BE\E_^^^Brz lana values that we have come through I think you wiU admit that the figured Tl have gh-en are not such as to give you concern Wif£ I propose Kg? /$

•aa Mr B? MUND Smith: I have great pleasure, Mr Chairman, in seconding the adoption of the report. It is Unnecessary for me to make any lengthened remarks, but I think I am only expressing the feelings of the shareholders when 1 say that it is exceedingly gratifying, notwithstanding the disturbances that are taking place all around us, that we are still able to hold our own and pay the usual dividend. But I think the most gratifying feature of the chairman's remarks was the reference to what may be caUed the t/lobo assets.—(Hear, hear.) No doubt there has been a great deal of anxiety felt by shareholders on this point—the fate of some of our neighbours has stirred up ouranxiety—-and it must be extremely gratifying to us to find that the amounts locked up in such assets come to so small a sum.—(Hear, hear.) AVhen, in addition to that, we are told that the highest security is only L3OOO there is double reason for congratulation, and I think that any fear that any particular shareholder may have had on that point will be entirely removed. I think that is the most gratifying information we have had for a lon£ time, and it shows that the shareholders in the institution may all go on their way rejoicing. I have great pleasure in seconding the adoption of the report. The motion for the adoption of the report and balance sheet was then put and carried unanimously. election of director. The Chairman intimated that the next business was the election of a director. The Hon. William Hunter Reynolds was the only person who had given notice that he -was a candidate. Mr Colin Allan : I beg to move that the Hon. W.....H. Reynolds be re-appointed a director. Mr A, G. Fenwick : I have much pleasure in seconding the motion. There was no other nomination, and the motion was carried unanimously. The Hon. AY. H. Reynolds, M.L.C.: I have to thank you, gentlemen, for your continued confidence, as, shown by your re-electing me a •director of ttie bank. I can only assure you that my best endeavours will be giveii in order to secure you a good dividend—a fair dividend —and also in watching over the interests of the bank. I have to thank you very sincerely. ELECTION OF AUDITORS. 1 The Chairman stated that the next business was tho election of two auditors. Mr Walter I Hislop was the only retiring auditor who was eligible for re-election. The Hon. W. J. M. Larnach, C.M.G.: Sir, I ■J* ™ 7 ery much pkasure in proposing. that! Mr AValter Hislop be i-e-eleeted, and that, to hll the position that is vacant, Mr A. G Fenwick be elected as co-auditor with him. I think those two gentlemen will be very suitable to do the business. Mr N. Y. A. AVales seconded tho motion, which was carried unanimously. complimentary. The Hon. W. J. M. Larnach, C.M.G. : Mr Chairman,—lf there is no further business to bring before the meeting, I have much pleasure in proposing a vote of thanks to the directors and officers of the bank for their conduct ot the business during the past half-year. fi ieV, c 1 had the Pleasure of moving this vote on the last occasion on which we met. I suppose I have a sort of sympathy for bank i managers and directors from being an old officer myself; but reaUy, in times of anxiety such as we have been passing through for some time, I think the shareholders owe the directors very many thanks for the great attention they have given to the affairs of the bank. It is true that the bank is going on in a slow and sure way, paying an equal dividend, which might in some more goahead places be considered small—a 7 per cent, dividend—but, looking at the number and the competition of banks in this colony with its small population, looking also at the necessity for keeping the bank in a strong, sound position, and taking into consideration also that provision has been made from time to time for bad debts as they occur, I think the result of this half-year is very satisfactory. If we look across the water and learn .what is happening day after day in the failure of banks of very much longer standing than this institution, I think you will commend the •directors if they are still more careful in keeping the bank in such a sound position that it may be beyond doubt; because with such events happening so near to us, there is always a possibility that the same fever may overtake a portion of our community, and therefore it behoves the bank to be in that extra-strong position that it may resist any difficulties and meet any demands made upon it. I think that trom past experience, sir, we may trust you and your colleagues to do what is needful, and therefore I have great pleasure indeed in proposing a vote of thanks to you and your colleagues and the officers of-the bank. .I agree with Mr Smith in what he has said with reference to the state of the "dead assets" you have on hand, and I think it will be satisfactory; to the public to know that the amount is encompassed within some L 50,000. I am only sorry, sir, you did not, besides stating that the . onaximum amount was L3OOO, give a list, without mentioning the names of the securities, of the whole sums making up the L 52,000 ; but it is satisfactory to know that that.embodies the whole, and I feel satisfied that from half-year dimmutT* y°U " WiU be able t0 annouhce al»rge Mr David Baxter seconded the motion, which was carried unanimously. Tie Chairman: Gentlemen, I am very thankful to you all for the manner in which you .-have passed this vote. There is no doubt that tor some time—a long time-the directors and officers of the bank have had very anxious times, but now we see the institution, gradually year after year, sailing into smooth water, when our anxieties will probably cease. With reference to what Mr Larnach has said about other institutions, I dare say many of them have learned now that it would have been better to refuse money than to run after it, and to seek large sums to lend them out when they had to push the money out without adequate security. AYe all ..5 one time have had to do that, but we all have learned sense in New Zealand, and these people are coming through the same ordeal as we did ; and I must say that the unanimous resolutions of the directors from time to time to take ■ httle money out of the colony—and then only in London—and our resolutions not to accept money over a certain amount there, have been the means of keeping us out of many troubles, and if other people would now only refuse money, when they could not do with it, it would be weU for them. All these difficulties that yon see on the other side are principally arising from their accepting money away from themselves. Gentlemen, there is no doubt that it we had taken money outside the colony we would have extended and grown faster, but •we have always professed to be a local institu- : tion-we have kept all our shareholders in the ' colony, and our principal deposits, with the ' exception of the sum of L 600,000, which We do not allow to be exceeded, in London, are largely ' spread in small sums over the colony. t In tact, what is aimed at is that this should' be 1 the people's institution, and so long as we c spread in that way, and we are earning on 1 business here, everybody sees what we are c .Cm™ we a*e the more likely to gain the < confidence of people who might be startled at any time hy any cry. Now, we are working a great deal themselves, are supported by officers handling the institution in a masterful i way, and they are all, so far as in their power ■* lies, devoting themselves to the interests of the t bank and working with a hearty good will for , you. lam happy to see you have given them a . vote of thanks. Gentlemen, on behalf of the - directors and officers, allow me to thank you for the vote you have just passed. i The meeting then terminated.