NATIONAL BANK OF NEW ZEALAND.

Otago Daily Times, Issue 13673, 16 August 1906, Page 2

NATIONAL BANK OF NEW ZEALAND.

MEETING OF SHAREHOLDERS. (From Oun Qwh Coreisponukst.) LONDON, ilnlv &. On the 3rd inst.. at Winchester House, the annual meeting was held of the National Bank of New Zealand. Mr Logan was in the chair. By a recent mail I was able to send you the report which had been issued. In moving its adoption, together with the accounts, the Chairman, before proceeding jo tho business of the ban!;, „aid they desired to express their great regret at the death of Mr Seddon, who had always shown himself n good friend of the bank, and tile prosperity which New Zealand enjoyed under his administration was the true cause of llm bank's excellent posilion.

The past year bod been, on the whole. a prosperous one in New Zealand. The main factor had been the enhanced price prevailing for wool—the htrgest article of export. The rise in price had been extraordinary, and had now reached a figure unknown for many years. The dairy industry continued to expand, and, for tho first time, the export of dairy produce Imtl, oxceeiletl £2,000,000 in value. Krozcn meat and relative products bad not lieen quite so satisfactory, and rather a lesser quantity had been available for export. The harvest in Otago and Southland had also not been so good as usual, but, on the whole, trade and business had been brisk. A succession of tears of prosperity had resulted in a morit liberal internal expenditure, which had latterly been very much evidenced in the import's of New Zealand Tho standard of comfort had been rising steadily. There liatl been a considerable surplus of immigration over, emigration during the past five years, and the cost of living was a good deal higher now than it. was "in the old times." Farm lands changed hands at high prices, the cities were being improved by handsome and commodious blocks of buildings, but residential areas and lands in many parts were selling at prices which appeared to be excessive, and it was a Question whether these prices could bo maintained. However, with such general prosperity, it follows that the bank had a very good year— in many respecis tho best tiioy bad ever experienced. After making full provision for all bad and doubtful debts, their gross profits amounted to £144.930, a very considerable increase over last year's fierires. The expenses had gone up. as was to bo expected, but they did not much exceed 50 per cent, of the gross profits. Including the amount brnuirht forward, the net profit worked out at the satisfactory figure of £76.167, out of which they paid the usual interim dividend in January last, and llioy now proposed to pay the some final 'dividend and bonus as were paid a year ago. They had transferred £10,000, instead of tho usual £5000, to the premises account, in view of the cost of their new building at Wellington. They had also transferred £3500 to pay a bonus to the staff, and the.v proposed to allorale £20.000 to the reserve fund, which would then amount, to £250,000—a sum equal to the company's paid-up capital. Fimillv. it was proposed to contribute £3500 to the pension fund,. as was done a year ago. If these suggested allocations were approved there would remain £9167 to be carried forward. The issue of the new capital moro properly belonged to the current year, though a sum of £24,292, representing advance payments, appeared in the balance sheet. The new issue was most popular in New Zealand, and. indeed, among alt their shareholders. When the instalments wore complete, as they would bo next October, the company's capital would stand at. £375,000 and the reserve fund at £300.000. The board looked forward with confidence to u continuance of tho bank's progress. There might be—must be. in fact—a pause in tho great prosperity which had been enjoyed in New Zealand for many years, but, with increase of population and accumulation of wealth, and the steady strengthening of the bank's position and reserves, they could afford to regard any such pause without tho least apprehension.

The motiun for the adoption of tin; report and accounts was seconded V>y Mr Morgan.

Mr James Gould said lie had just returned from the colony, and the chairman had not exaggerated (hp pros|y.>rity of tho hank?. Tim prosperity of New Zealand was not speculative. There wight be fictitious prices in regard to a little suburbait land, hut the amount: involved was hot very considerable. He would have liked to see the bank increase its business twice as much as it had. and he hoped t.hr> capital of the bank would be increased still more. The bank had a magnificent, staff. Tlio report was adopted, and the proposed dividend, at Ihe rate of 10 per cent, with a bonus of 2 per cent., was also agreed to. The retiring 1 directors having been re. elected, Air Could moved a hearty vote of thanks to the general manager and the staff. Mr Hetmiker, who said ho was acquainted with all parts of Now Zealand, seconded this. He was glad to sec the si aft' pension fund was hpinir raised. aJid he hoped there would be bonuses. The motion having been agreed to, the proceedings were brought to a close.