BANK OF NEW SOUTH WALES

Otago Daily Times, Issue 24630, 11 June 1941, Page 2

BANK OF NEW SOUTH WALES

EIGHTIETH ANNIVERSARY IN DOMINION To-day signifies another important milestone in the history of the Bank of New South Wales in New Zealand. Eighty years ago to-day the bank first opened for business in New Zealand in the. Oriental Bank Corporation's premises, Auckland. The first manager and inspector was Mr D. L. Murdoch. Branches were subsequently opened at Lyttelton on July 18, 1861, Christchurch on July 19, Invercargill on July 24, Dunedin on August 8, Wellington on September 2, and Wanganui on September 3, all of the same year. The early history of the bank was largely concerned with developments in the South Island, as the Maori Wars, which began in 1860, checked pastoral expansion in the north. Indeed, the North Island was so disturbed in 1863, only two years after the Auckland branch was opened, that the scope for banking services was limited, so it is not surprising that no branches were permanently added to the original three in the North Island until 1873.

Business, however, increased rapidly in the South Island, especially during the gold rushes in Otago and Westland. Branches and agencies were quickly opened to meet the very necessary gold-buying service 'to miners. Although gold buying on the whole was profitable to the bank, yet keen competition from other banks kepti charges low, and the risk of loss was always considerable. On two occasions the bank lost substantial amounts by highway robberies on the West Coast. When the gold rushes subsided "some South Island branches were closed, but many new branches were opened in the north, for business was expanding rapidly there and large areas of land were coming into cultivation.

The bank came safely through the severe financial crisis of 1893 in Australia and New Zealand, which caused the failure of many financial institutions and suspension of several banks in both countries. Conditions in New Zealand improved from 1900 onwards, with a minor relapse about 1908, until the outbreak of war in 1914. Rising prices then encouraged greater production, facilitating the change-over from extensive farming to the more intensive and profitable dairy and mixed farming. The bank contributed its full share towards the progress made during this period, increasing its business- and expanding its services. Between 1900 and 1914 the number of branches in New Zealand increased from 35 to 52, most of the new branches being in the rapidly-developing dairying districts in the North Island. From a very small beginning—the first ledger of the Bank of New South Wales, still in existence, shows- that when it commenced operations at Macquarie place, Sydney, in 1817 its paid-up capital amounted to £3625 the bank is now the oldest and largest bank in Australia and New- Zealand, and ranks thirteenth among the banks in the British Empire. Capital, and reserves amount to £ 14,930,000, and total assets exceed £143,000,000. The bank has 875 branches and agencies throughout Australia, New Zealand and London, Fiji, Papua and New Guinea, with agents throughout the world. The first president was Mr J, T. Campbell, a position now occupied by Mr R. W.. Gillespie. The present general manager, Sir Alfred C. Davidson. K.8.E., has held the chief executive position since 1929, and the bank's activities in New Zealand have been under the charge of Mr R. C. Addison since 1928. The Dunedin branch of the bank was first -under the managership, of Mr John A. Douglas, who was transferred from Sydney in 1881. The present manager is Mr J. R. H. Caiman.