NATIONAL BANK OF NEW ZEALAND.

Otago Witness, Issue 3101, 20 August 1913, Page 6

NATIONAL BANK OF NEW ZEALAND.

PROSPERITY OF THE DOMINION,

MR ROBERT LOGAN’S REVIEW

(From Oub ow.\ Cokkespondent.) LONDON, July 4. Presiding over ths iom-fiist ordinary general meeting of the National Bank of New Zealand on 'I uesoay, Mr Robert Logan told the shareholders that tioni the results shown it was obvious tiiat trade iji New Zealand had been extremely goodin proposing riie adoption ct the report and balance snect the Chairman said that the

authorised capital hud boon raised from £1,725,000 to ±13,000,000 in accordance with the resolutions passed at tnc previous general meeting, fjince March 31, ihe date ot tho balance sheet, they had issued 100,000 shares °t__ £3 15s each, making an acid.non of £570,000 to c;aniral and reserve, so that the paid-up capital would in future be £750,000 and tue reserve fund, inc.uui..g me £20,000 being added this year, wouia be £646,000. It wus wilii a certain amount of trep.elation that the directors came to the conclusion that such a largo issue of shares at 50 per cent, on the already paid-up capital was advisable, but they’ thought tne-y could employ the money tully, and tho result ol the issue more than surpassed their expectations. Shamholders were given the option ot paying up m full and getting the lull di vice net, whatever it might be, from April 1, instead of Irom the dates of tho instalments, and in the first few days ot April they got in fully 80 Ik'r cent, ol the total amount, or close upon £boo,ooo. This was the best possible proof ol the confidence the shareholders had in tho board, particular.y as it was a very bad time for issuing further capital. The deposit and current accounts • had been reduced by £127,000. The reduction in cmre.it accounts was probably merely the result of active trade, and as regarded the fixed deposits such deposits in Now Zealand had been stationary for a number of ymrs, and in a good many instances had shown a tendency to diminish. The stagnation, however, in the fixed deposits of the bank had not in any particular way affected them, seeing that in the last few years the character of their business had been changing a good deal. ’lheir exchange business had increased enormously, and in order to work tins they did not require such very largo fixed deposits. Bills payable and other liabilities had gone up by about £220,000, a natural result of their exchange business increasing. ’1 HE CREDIT SIDE. On tho credit side of the balance sheet coin and bullion had decreased by £77,000, and cash at bankers by £199,000—a total of £276,000. Part of this • was accounted for by the increase in investments, and the rest had gone into bills discounted, bills receivable, and advances on securities. Generally speaking, they would have felt disposed to reduce tho advances, because they did not like to see their liquid coin go ng down, but they knew they were going to get a lot of money in from new capital, 111141 as they received close upon £300,000 m the first few days of April it was clear that the reduction in cash had no real effect. The gross profits had gone up by £22,500, and the net profits by £15,000, the gross disposable balance being practically £21,000 up It was proposed to pay tho usual dividend at tho rate of 12 per cent, and a bonus of 1 per cent., adding £20,000 to reserve, and increasing the grant to pension and gratuity funds from £3OOO to £4OOO. They were carrying forward £36,756, or £10,500 more, tho aim of the directors being to carry forward eventually w hat would amount to a half-year’s dividend. NEW ZEALAND’S EXTERNAL TRADE. it was obvious from the results shown that trade in New Zealand had been extremely good. Instead of the imports into New Zealand exceeding the exports, us in previous years, the exports of produce had exceeded tho imports by between £1,300,000 and £1,400,000-—not a very large figure, but still a move in tho right direction. The exports amounted to about £22,600,000 last year, and the imports to £21,300,000, which meant that New Zealand had the extraordinary external trade of some £44 per head of the population. It was most astonishing what a million of people could do—how they could raise the quantity of stuff which they sent out of their country. Their industry, intelligence, and knowledge were remarkable. It was a pity from their own point of view, that they wore obliged to import £21,000,000 of goods from this side, but they were well able to pay for them, and they considered it cheaper, having regard to labour troubles and tho ample manner in which their capital was already employed to import their motor cars, pianos, gramophones, and various other luxuries from this country rather than to build thorn themselves. Probably they were the best judges of their own business. The amount of money that was poured into New Zealand was perfectly astonishing. Tho valuo of wool exported last year was something like £8,000,000, and for the first time, tho value of dairy produce exceeded that of frozen meat, being £4,000,000. Of course, New Zealand had had the advantage of very high prices for wool, dairy produce, and frozen meat, but there was no reason why these features should not continue; indeed, he thought it quite likely that they would, especially with regard to dairy produce, as there scorned to be an unlimited field for whatever amount New Zealand was able to export in that direction. They had finished the construction of their premises at Dunedin, and the Bank Chamber was said to ho the finest in New Zealand. Tho Chairman admitted that it was wise advice not to invest much of their money in bricks and mortar, but those who know "Dunedin had to acknowledge that tho old bank building was a most inconvenient and unsatisfactory building. Mr E. C. Morgan seconded tho motion for the adoption of tho report and accounts. In reply to Mr Lubecki, tho Chairman said that if the Government determined on a state note issue tho bank would regard it as a matter of very little concern. The report having been adopted, the Hon. Henry Stuart Littleton and Mr Robert Lo trail were re-elected directors. On the proposition of Mr Acton Adams a vote of thanks was passed to the staff in Now Zealand and London.