COLONIAL BANK

Otago Daily Times, Issue 9859, 3 October 1893, Page 6

COLONIAL BANK

\ :^ :^Al|^Ate < BffiETING. i rty;e!ißstb,'.^alKyearly meeting of the prj9prjejo,r.s 0 of; tfyTpolonial Bank of New Zealand,. was,,^a on the 27th ult., and was attende-a by about 30 shareholders. The Hon. Gepjfge M'Lean, M.L.C. (president of the bank), occupied the.chair, and the other directors present were Dr Hislop, LL D Messrs P. C. Neill and E. J. Spence.

BEPOBT AND BALANCE SHEET. The following report and balance sheet were submitted to the meeting:—

The directors have pleasure in submitting to the proprietors the accompanying balance sheet and statement of accounts for the half-year ended 31st August last. The net profits for the half-year after deducting interest paid and accrued on fixed deposits, rebating bills under discount, and charging all j expenses of management, rent, &c, atid duly providing for bad and doubtful debts', amount to.1... ... . ... ... ... ... £19 21216 0 To this has to be added balance ' . from last half-year 8,423 10 4 . , „ • ' £27,636 6 4 And there must be deducted tax on note circulation and land and incometax 2,201 13 8 ■nr, • Leaving available , ... ... £25,434 12 8 which the directors recommend to be applied as follows:— To reserve fund (which will then stand at £60.000) £5,000 0 0 ■ ii Payment of dividend at the rate of 7 per cent, per annum on the paid-up capital 14,000 0 0 n Balance to be carried forward 6,434 12 8 - £25,434 12 8 Upon confirmation by the proprietors of the foregoing appropriations, the dividend will be payable at the head office, on and after the 28th September next, and at the branches on receipt of the warrants. Geo. M'Lean, Chairman. Balance Sheet of the Colonial Bank of New Zealand, As at 31st August 1893, including London Office at 31st May 1893. Dr. £ s d Capital £2 paid up on 200,000 ; ' _shares ... ... ;.. ... 400,000 0* 0 I Notes in circulation... ... ... ' 117,147 0 0 Bills payable and other liabilities 662,766 710 Deposits ... • ... 2,186,17311 1 Balances due to other banks ... 721 3 7 Reserve fund ... ... ... „, .55,000 0 0 Profit and loss . ... 25,434 12 8 £3,447,242 15~2

• Cr. jE • s.-d. Coin, bullion, and cash balances at bankers' ... ... 346,126.8 1 Government securities, consols, &c. 206,175 }3 0 Notes of and balances due by other ban&s... ... ... 14,202 14 4: Remittances in transitu • and awaiting maturity ... : ... 622,996 8 1 Landed property and bank yre_mi3es... 124,143 13 5 Bank furniture and stationery .;. 9,983 10 1 Bills discounted and all other debts due to the bank ... ... 2,123,614 8 2 '.*■■•'■ £3,447,242 15 2 PROFIT AND LOSS ACCOUNT. T ? r- <: . £ s- d- £ B. d. To transferred to reserve fund on 29th March 1893 2,500 0 0 ! " Dividend at 7 per cent, per annum at ' 28th February 1893 14,000 0 0 » . ~. • r „ - — 16,500 0 0 n Charges for the half-year, including rent, taxes, salaries, re- . muneratiori to directors and auditors, and all other expenses at head office, 31 branches, and 11 agencies... ... ... ... 25,281 810 n Tax on note circulation ... ... 1,270 18 2 n Landand income tax ... ... 930 15 6 ii Proposed addition to reserve fund ....£5,000 0 0 it Proposed dividend at the rate of 7 per cent, per annum on the paid-up capital 14,000 0 0 n Balance 6434 12 8 -25,43412 8 £69,397 152 Cr- ' £ B d By balance profit and loss at 28th . ' February 1893 ... ... •;..- 24,92310 4 ii Gross profits for half-year (after making provision for bad and doubtful. debts, interest paid and accrued on fixed deposits, and rebate on Bills current) amounts to .-.,•■ ... 44,474 410 £69,397 15 2 a ■ ■ . _,; ' RESERVE FUND. Dr. £ a A To balance ... ... 60,000 6 6 £60,000 0 0 Cr. . £ s a By balance 28th February 1893 ... 52 500 0 0 " Transfer from profit and loss, 29th Marchlß93 2 ,500 0 0 11 I'roposed addition now ... ... 6,000 0 0 £30,000 0 0

Geo. M'Lean, Chairman. H. Mackenzie, General Manager. We have examined the cash and bills on hand at head office, and compared the abstracts of balances from the various branches, and certify the foregoing statement to bo in accordance therewith and correct. , A. G. Penwick.l ■ ~. Thos. Moodie, / Editors. Dunedin, 12th September 1893. We have examined the abstract balance sheet qi * &Lo1^? bra? ch *or the half-year ending 31st May 1893, and having compared, the same with the books of the bank, find it to be in accordance therewith. We have counted the cash and stamps and gone over the bills on hand, and found the whole to be correct." We have also verified the securities held by your London bankers, and compared the bank pass books, and found them to agree. . ' Thomson, Jackson, Gourlay, and Taylob, C.A. London, 4th July 1593. ' The Chairman, in moving the adoption of the report and balance sheet, said: Gentlemen,—The report having been in your hands a fortnight, I presume that you will all be agreeable to take it as read. The only unusual features are. the shrinkages, mostly consequent upon the repayment of the £400,000 Government loan, the expansion of the exchange business fowiDg to the Government purchases of our drafts), and the separation of the •'remittances in transitu and not due" from the other advances. The latter change makes the balance sheet more complete. I can assure you that it is with no ordinary degree of satisfaction that your directors are able to produce such a favourable report, and to recommend the payment of the' usual 7 per cent, dividend, besides placing £5000 to the reserve fund, and carrying forward £6434. This satisfactory state of affairs is a matter for more than usual congratulation at a time like_ this, when our success stands, as it were, in relief against the recent panic in Australia—a panic which, I venture to say, is unparalleled in history. Happily that panic, with the exception of the short and absurd ran on the Auckland Savings Bank, did not extend to New Zealand. The temporary scare caused by the Auckland run was, however, sufficient to make the Government feel the necessity of enacting legislation to meet cases of panic, and the necessary bill was passed to enable the Government, under certain conditions, to declare notes a legal tender, and to afford help, if necessary, in cases of emergency. L&t us hope that there will be no need to call this act into operation. The Government have also had under consideration the question of a Government audit of the banks in the colony, and, as such would give more confidence to the I public and prevent senseless panics, this bank ; would hail such legislation with great satisfaction. Indeed, I myself had in contemplation the introduction of such a measure., and procured certain acts, and papers from America, which, on learning of the Government's intention, I handed to the Colonial Treasure?;: offering him at the same' time all the information I had acquired regarding the working of the law on the subject in force in America. Reverting to the late financial crisis which swept over Australia, you will naturally expect some statement as to how it affected us. I am happy to ba able to tell you that through the arrangements we had with our various agents in the other colonies no inconvenience has been experienced by any of our customers, whose business with Australia was conducted without hitch; while so far as we ourselves are concerned, the total amount we have locked up owing to the crisis is a sum under £30, owing to us in balance of account by one of the suspended banks. With regard to the suspension of the New Zealand Loan and Mercantile Agency Company (Limited), we, as a bank, are in no way interested. We, however, deplore the trouble that has befallen them, and hope soon to see the institution iv active business again. From a return laid " before Parliament we find that we are very harshly treated in having to pay 40 per cent, of the whole income tax oollected from the six banks doing business in the colony. This certainly shows that a radical change in the law i* necessary, for surely, if any advantage is to be given, it should be on tha side of an institution that is purely a New Zealand one. With regard to our shares, though they have suffered the least depreciation of those of any colonial batik, still they are low. There is, however, no real reason for this, as our business is a good and liquid one, and the shares are now intrinsically worth more than ever they previously were With regard to the state of the colony, it is upon the whole prosperous. The rabbit pest, and' the" preferential demand for long wool have doubtless adversely affected some interests, but the vast majority of settlers have greatly benefited by the continued high prices of sheep and cattle. When we compare the;e prices with those obtainable only a few years ago, before meat-freezing superseded the boiling down of carcases for tallow, ifc is manifest that great praise and thanks are due to those who promoted and carried to its present state of success the great industry of freezing, exporting, and selling mutton and beef, these being products which New Zealand is so well qualified to produce. With these remarks, gentlemen, I beg to propose the adoption of the report and balance sheet

Mr 0. Haynes (Mayor of Dunedin): Mr Chairman, I have much pleasure in seconding the adoption of the report and balance sheet. Speaking as a shareholder, I desire to express

my gratification at the very excellent report •which has been placed in our hands as the result of the past half-year's business, and I think it is only due to the board that the shareholders should express their gratification at the satisfactory nature of the report. You, sir, have referred to the circumstances which have arisen in the neighbouring colonies, and I do not intend to refer to that further than to express the hope that those colonies are now at the end_ of their troubles, and that, for the future, instead of expressing our regret, as we have dene in the past, at their misfortunes, we shall be able to rejoice that, they have taken a turn and are on the road to prosperity. Although I am a very old shareholder of the bank this is the first occasion on which 1 have taken any part in the discussion at the meetiDg, but I have nevertheless carefully watched the management, and I have been pleased to note that there has been no attempt in the past to advance the bank "by leaps and bounds," such as we have heard so much of elsewhere. The management have pursued! a steady, careful, and prudent course, and. I have no doubt that if that course, which has been a special characteristic of the past, is continued in the future, we shall, backed up as we are by the boundless resources of New Zealand, be able to raise, oh tbe solid and firm foundation which has been laid, a superstructure that will last, we hope, for all time. Ido not know, sir, that I need say anything more. It is very gratifying to shareholders to receive such a balance sheet, particularly when it is accompanied by a dividend. No. fault can be found with it. We are all in the best of humour and on the best of terms with ourselves; and I trust this will always continue. I will content myself now with seconding the adoption of the report and balance sheet.

The motion for the adoption of the report and balance sheet was then put and carried unanimously. : COMPLIMENIA7IY. Mr W. Babbon: I beg to move a vote of thanks to the directors and staff of the bank: As a rule this is merely a formal motion, following as a matter of course upon the presentation of the balance sheet, but I think we should treat it as more than a conventional motion. We all feel that the directors and. staff of the bank deserve at our hands' something more than a merely formal vote of thanks, Considering the very critical times through which we have been passing, it is an excellent balance sheet which has been presented to U9. I would also remind the shareholders that the directors and stafi of J the bank are immediately under our personal' notice, and, as a rule, are , personally known to . us. We can therefore estimate their business capacity, and we all have opportunities of knowing whether.the institution is prospering or not, better than if it were managed by a board in London and by officers and directors about whom we know nothing. Sir, I haye 1 great pleasure in moving this vote. Mr John Weight: I have very much pleasure in seconding the motion. : The motion, on being put, was carried unanimously. .'.'■'■

The Chairman: Gentlemen, on behalf of the directors, the general manager, and the staff of this bank, I desire now to return thanks for this vote which you have given, more.especially on the present occasion because, gentlemen, you will naturally feel that to our officers and to all connected with the institution the severe panic which has been going on in the adjacent colonies must have caused considerable anxiety; and the manner in which all the officers have devoted themselves to the business of this institution is deserving of more than ordinary praise. It is true, as Mr Barron has said, that we are here before the public, and anyone can see what we are doing. We are now the only banking institution in this colony which is managed, directed, and,1 I may say, entirely owned in this/colony, and, gentlemen, let.me say this, that with your confidence in the.future as in the past, you will yet find this the leading bank in the colony. (Hear, hear.) Gentlemen, I thank you cordially for the vote you have just passed, more especially, because, as I say, in times like these more than at'an ordinary time, such a vote can be appreciated. The draft minutes having been read the meeting terminated.