THE BANK OF NEW SOUTH WALES

Otago Daily Times, Issue 22904, 11 June 1936, Page 5

THE BANK OF NEW SOUTH WALES

SEVENTT-FIFTH ANNIVERSARY IN NEW ZEALAND

This-day marks tlic seventy-fifth anniversary of the extension to New Zealand of the operations of the Bank of New South Wales which came into existence in 1817. The Oriental Bank Corporation, with Australian headquarters in Melbourne, had opened branches in New Zealand in 1837, and in 1860 Mr Falconer Larkworthy arrived in Auckland on behalf of the corporation, which was considering discontinuing its business in New Zealand, as its deposits were . insufficient and “ too much loan money was required.” He was instructed not to extend the business, and in May, 1861, ho received word to close it up. Mr D. L. Murdoch was sent over by the Bank, of New South Wales to take over, the Oriental Bank’s premises and such business, of the bank as was considered suitable by the Bank of New South Wales. Power-to extend the activities of the latter hank beyond Australia had been taken by an alteration in the constitution of the bank which was made at the annual meeting held in Sydney in April, 1860. Early in the following year arrangements were completed between the bank and the Oriental Bank Corporation, a London company, the interests of which lay chiefly in.lndia and the East, for taking over the business of the bank in New Zealand.

On dune 11, 1861, the bank first opened its doors for business in New Zealand in premises which -the Oriental Bank Corporation occupied in Shortland street, Auckland; The corporation discontinued its operations simultaneously with the opening of the Bank of New South Wales and announced that all legal claims against it would he met by the new institution on demand. The first manager of the bank was Mr D. L. Murdoch; who was also the bank’s inspector for New Zealand.

In the same year branches were opened at Lyttelton on July 18, at Christchurch on July 19, at Invercargill on July 24, at Dunedin on August 8, at Welling-ton-on. September 1, and at Wanganui on September 3. The branch at Lyttelton has since been closed. The Otago Witness of August 3, 1801, contained announcements by the Oriental Bank Corporation and by the Bank of New South Wales. The former intimated that its branch would be discontinued for general business after August 7 and that. Mr A. G. Anderson, its manager, would continue to represent it at Dunedin and would collect on its account all bills and other debts due to the bank iit their maturity. The announcement by the Bank of New South Wales intimated that its capital was £750,000 and its reserve fund £212,500, and that a branch would be opened in Dunedin on August 8.

The original Christchurch branch promises were rented from Mr William Sefto.n. Moorhonse, Superintendent of Canterbury, and the first manager was Mr Charles Wesley Turner. The first premises in Invercargill were acquired from the ©dental Bank and comprised a small cottage in Tay street. The first manager was Mr Thomas Matson, whose services' were transferred from the Oriental Bank. The Dunedin and Wanganui branches were opened in premises previously occupied by the Oriental Bank, while the Wellington branch first opened its doors in Manners street’ "The Dunedin branch first commenced business on the site now occupied by the Dunedin Athenteum, but was shortly afterwards removed to the corner of Princes and Rattray streets, where the offices of the New Zealand Government Tourist Department are situated. The building at present occupied by the bank, in Princes street was completed in 'September, 1860. The position of manager- of the Dunedin branch was first occupied by Mr John Douglas. Mr C. W. S. Cox holds that position at

present. ' The bank’s activities in the early Otago goldfields covered a wide field, and mention of some of its branches, such as those at Dunstan (Clyde), Cromwell, Lawrence, Waipori, Arrowtown, Hogbnrn (Naseby), Queenstown and Harailtons, will recall to surviving “old identities” memoirs of stirring days in the past. As already indicated, the history of the.Bank'of New South Wales dates back for more than a century. It was among the earliest of all colonial banks, being established in 1817, and was the first bank to open its doors in Australia. At that time the population of Sydney was, about 5000 inhabitants, while the total'white.,population of Australia numbered only 15,000. The bank first commenced operations in Mary Reiby’s house in Macquarie place,. Sydney, on April 8, 1817. Its formation was due to the fact that an urgent need was felt by the people of the young colony for overcoming the confusion and disorder that had arisen through the lack of any settled and acceptable currency. The first ledger, which ,is still in existence, shows that operations were commenced with a paid up capital of £3625 expressed in dollars, the British sovereign not then having assumed its lawful sway in the currency system of the country. The balance sheet which was presented to the shareholders on January 21, 1818, was of a character that is not nowadays issued by banking institutions. On one side of the account were shown notes, in circulation £5035 8s and 1 personal balances £1859 4s Bdj bank subscriptions received, £3025; and discount. £250 13s, and premiums £3O 14s sd. On the other side appeared the items: Bills in Treasury, store receipts, and specie on hand, £3013 2s lOd; bills of exchange, £5093 5s Id; mortgages £1381; office goods and furniture (cost), £340 10s 4d; and bank expenditure for salaries, wages, stationery, etc., £373 Is lOd. The discounting business of the bank speedily assumed considerable proportions, the bills increasing from £12,193 in 1817 to £81,072 during 1818, and £107,230 in 1819.

The early prosperity of the bank aroused powerful opposition and competition, and in 1820 its very existence was seriously threatened.. These difficulties were, however, successfully surmounted, and in 1850, to meet the developing conditions of the colony, a new company was formed and incorporated by Act of Council.

In the great financial crisis of 1893, the Bank of New South Wales was one of the four banks that did not close its .doors. The most important events in its mjore recent history have been its acquisition of the Western Australian Bank in 1927 and of the Australian Bank of Commerce, Limited, in 1931. Its authorised capital is now £8,780,000 with a reserve fund of £0,150,000, and its assets total £115,000,000. The bank has 705 branches and agencies throughout the Commonwealth of Australia, New Zealand and London, Fiji, Papua and the Mandated Territory of New Guinea, with agents and correspondents throughout the world. The establishment in the Dominion now totals 80 branches and agencies. The first president of the bank was Mr J. T. Campbell, and that position is now occupied by Sir Thomas Buckland. The present general manager, Mr A. C. Davidson, has* held the chief executive position since 1929, and the bank’s activities in New Zealand have been under the control of Mr R. C. Addison since 1928.

The Bank of New South Wales is the largest hank in Australasia and ranks thirteenth among the hanks in the British Empire.