THE BANK OF NEW ZEALAND.

Otago Witness, Issue 1927, 26 October 1888, Page 13

THE BANK OF NEW ZEALAND.

(From Our Special Correspondent,) Auckland, October 22. The halt-yearly general meeting of shar holders of the Bank of New Zealand was held : the Banking house, Queen street, at noon to day. There was a fairly large and represent; tive attendance. Mr George Buckley, presidei of the Board of Directors, presided. The fifty-fourth report of the directors wi submitted in priuted form and taken as read. ] was as follows : — The result of the half-year's operations Is as fo lows:— Net profit for half-year ended 29th September 1888 ... ' ... ... J832,607 2 To which has to be added the balance from half-year euded 31st March 1888... ... .„ ... 25,861 8 Making a total available 0f... ... £58,468 10 Which it is proposed to appropriate - as follows : To the payment of a dividend at the rate of 7 per cent, per annum ...£24,500 0 Balance carried forward ... ... 33,968 10 Total „. ... £58,168 10 The Chairman, in moving the adoption of th report, said : On this occasion we present to yoi our half-yearly report under exceptional cir ! cumstauces. The bank has undergone a tryiiij ordeal, and while the result in certain aspect has been reassuring and even encouraging, thi conditions have been in some measure paralysinj to our ordinary operations, and therefore un favourable to the earning of a profit. You will no doubt, scan the figures of the balance shee with more than ordinary interest to see foi yourselves how the bank has fared undrr th' experiences of the last 12 months, and I now without further preface, review those figures bj way of eluoidation. An all-important featurt r in the bank's balance Hheet is the cash resources s it is known to command. In this respect 1 ; think you will agree that the position is strong , and theroforo satisfactory. Our coin in the ' colonies and cash balance with London bankers f amounts to £2.300,000, and the mon"y at short ; call iv London to £460,000, in all £2,760,000, besides £350,000 of bullion in hand or in transit. Such figures speak for themselves. I will only add that as eorflpared with the last half-year there is an increase in the cash resources of £400,000. In deposits there is a decrease of £300,000 which by itself is no doubt a considerable sum, but upon a total of some £9,000,000 is insignificant, and iv view of the circumstances in which the bank has been placed such a result ip, I venture to say, gratifying and even surprising. Bills receivable are less by £800,000, which is a fluctuation due to the loss active half of the year when there are few or no bills current. Ordinary advances are less by £150,000, a matter rather of chance than of necessity. The larger apparent decrease shown in the balance sheet is caused by the amount written off. On the whole we have been doing less business and keeping a larger cash reserve, — a policy imposed on us by a prudent regard to existing condition?, but which as I have already said necessarily curtails our earning power, otherwise lessened by the lowered valuo of money and less active trade, of which most of us are in one form or another personally cogniaant. The net profits for the half-year amount as you see to £32,607 2s sf), out of which we propose to declare a dividend at tho rate of 7 per cent, per annum, absorbing £24,500, and leaviug £8107 2s 5d t,o be added to the amount carried forward^wbieh will then stand at £33,968 10s Bd. The sum available would have admitted of a higher dividend, but it must be borne in mind that we are yet in the convalescent; stage J and will do well to go soberly. This outcome I of so large an aggregate of business as our balance sheet shows would be discouraging if our assets were available for earniug a profit, which unfortunately they are not. If they were we should have much more satisfactory results to set before you, and we hope ere long to attain that gratifying position, because it will be our immediate care to realise these unproductive assets as speedily as it may be done with advantage, and make tho proceeds available to the very material increase of your returns. Wo believe we shall be assisted in this by better times and brisker trade, of which, there are already palpable signis. You will have observed that settlement on public lands has of late been more active than for many years past. There is a noticeably increasing inquiry for property, while sales have taken place at prices something more than encouraging. From any such improvement in the general state of the colony you may hope to profit in a double sense — more of your resources will be let f res for legitimate

employment, and employment for them will be more remunerative.- I need hardly add that we shall not neglect to see what can b« done to jacreese the net profits by judicious retrencbSfeafc and concentration, jfrm are aware that it is proposed to increase the capital of the bank, and jro a have been fully iufowoed of the reasons for this step. We are glad to fee able tossy that we have satisfactory assurance that the capital will be readily taken ;ip.

Sir Frederick Whitaker seconded the inotiou for adoption of the report asd balances .sheet. He thought that shareholders might fairly be congratulated upon the report tbafc bad been read* and the observations of the chairman. There was no doabfc that the bank "had gone through a great ordea), aud he questioned if there were many other institutions of a similar character that would have faced the same ordeal, aud Come out of it with the same success. [ There were one or two questions in respect to which he would like to draw attention briefly. The first was with reference to the profit and loss account. They would find then that the neb profits during the half-year amounted to £32,607 2s sd. This sum would have enabled the directors to declare a much larger dividend than thatgiven, but on the whole ho thought they would agree with him Mat it was most prudent to pay a smaller dividend and carry a larger amouut forward to the next half 'year. The anxnint carried forward was £33,968 10s Bd. If they would look at the statement of accounts they would find that the coin and cash balance at the bankers, money at short call in London, and bullidn on hand and in transit — which meant assets to hand when required— represented a much largef sum, and placed the bank io a stronger position. Tlietfe facts were worthy of consideration.

A lengthy discussion eusued, and Mr Law moved — " That the report be not adopted uutil a full and complete list of the Josses of the bank has be'eu laid beforo the shareholders in accordance with clause 118 of the deed of settlement."

Mr Cherry seconded the amendment. After a further discussion the amendment moved by Mr tiaw wns then put to the meetings and negtatived by about 30 to 7. Mrßoardman moved, re clause 05— #t That the whole of clause 95 be omitted and the following substituted thereto?:— 'The auditors need nob bo members; but no person shall be eligible as an auditor who is at the time of such election interested otherwise than as n member in any transaction of the company ; aud no director or other officer of tlio company shall be eligible during his continuance fa office.' "

Mr O'Neill seconded the reflation.

The motion was withdrawn on the understanding that the directors would consider the matter with a view to amendiug the method in vogue before the next annual meeting.