The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, JULY 18, 1894.

Pahiatua Herald, Volume II, Issue 176, 18 July 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, JULY 18, 1894.

The extremely small dividend of 6 per cent, per annum declared by the Union Banks gives an indication that depression has overtaken the Banks. There is plenty of money in these institutions, and that unfortunately is the trouble, for gold, as we have pointed out time and again, is a commodity, and secures a value when put to use. \Ve regret to see the Bank rate of dividend reduced, for the reason that it signifies dullness in trade. The Union Bank has steadily curtailed the amount paid to its shareholders, and the dividend for 1894 is nearly sixty per cent, less than that paid for 1891, when the amount paid was 14 per cent. ; in 1892 it fell to 12 per cent. ; in 1893 the fall was more marked, owing, no doubt, to the financial troubles of the year, and the dividend paid then was 8 per cent; this year, as we have already noted, it is further reduced to 6 per cent. At this rote it would be much better to be a depositor in a bank than a shareholder. The bank rate for deposits is, in the caso of the Union Bank, 4J per cent., while the shareholder gets 6 per cent., but for this larger interest each share carries a contingent liability of £SO; and it is this reserve liability that is held out as an inducement to depositors. Taking the respective returns on capital invested by shareholder and depositor, the latter stands on a pedestal of comfort and safety.