BANK OF NEW ZEALAND.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 11961, 12 December 1919, Page 8

BANK OF NEW ZEALAND.

The half-year general meeting of shareholders in above was held at Wellington to-day, Mr J. H. Upton, acting Chairman of Directors, presiding The Chairman remarked that the profits were of the usual satisfactory character and the Board is declaring tlie customary dividend of G per cent. He also referred to the appointment of Mr R. W T . Gibbs as Chief Auditor, and'the retirement of Mr W. Oallondar as general manager, to be succeeded by Mr H. Buckletou, whose capacity as a banker, combined with his energy of character, justified anticipating fpr him a success equal to that of his predecessor. The report referred to other changes m the 'staff and revision of salaries to meet the increased cost of living, also to the call off£3 6s 8d per share to be made on 9th January. It noted that Jthe conditions of industry and trade throughout th« Dominion remain for the moat part satisfactory. All the primary industries are thriving, and prices for products are good. A rather severe drought in portions of the North during the autumn and winter, and an excess of moisture in parts of the South, resulted in a scarcity of feed, and as a“consequence some losses of stock occurred, and stock in those districts generally have - come through the winter in poor condit’on. Lambing, as a result, is expected to be below the average. In Canterbury, severe snowstorms during the winter months are known to have resulted in serious stock losses, the fall extent of which will not be ascertainable until mustering and shearing are complete. Notwithstanding these drawbacks, however, the pastoral industry, owing to the good prices obtained under the Government purchase, is prosperous, and most-of those engaged in it are doing well. Dairying is also prosperous. Olimatifc conditions in the dairying districts both last season and this (so far as it has gone) have been favourable: and prices being also satisfactory, those engaged in the industry have thriven. Speaking 'generally, evidences of prosperity are to be found everywhere. The people apparently have plenty’of money to spend, and are spending it freely. Wholesale and retail traders admit that they are doing exceptionally well and making good profits. One cannot but be struck by the

contrast between the conditions prevailing here, and those in a large part of the civilised world which has been devastated by the greatest war of history, and where the populations of those stricken lands are absolutely destitute and on the verge of starvation ; and the thought not unnaturally arises to ask whether our happy condition can be regarded sound and likely to be lasting. Sound it certainly is, and will be, so long as the country continues to produce to her utmost capacity ; and lasting it will be, if our resources of every kind are developed with energy and intelligence, so aa adequately to be prepared to meet whatever contingencies may arise. One result of our prosperity, —and a result which I cannot hut regard otherwise than as unfortunate—, —is an accentuated upward movement in the price of land. In some districts, land is changing hands at prices that, immediately before the war, would have been regarded as reckless. A fnota of warning was sounded in the last address from (this Chair; and we feel it our duty to repeat and emphasise it. Clearly, some agriculturalists and pastoralisrs are basing their calcuia-

t ions on a continuance of the present'high prices for produce, or a possible further improvement therein. Wo cannot but regard this as too optimistic. Operators should not close their eyes to the possibility, or even the probability, of a fall, and should so restrict their liabilities that they will not be seriously hampered should a fall in prices, and a corresponding shrinkage- in laud values taka place. A most important question is that of freight facilities after the Government purchase ends. Owing to the shortage of insulated ships, it would seem necessary that early steps should be taken with a view to ensuring that the necessary amount of insulated space shall he available to carry our exports to market, otherwise our producers will be in a very unenviable position. One Freezing Company has been so impressed with the prospective difficulties of the position that it has made the experiment of purchasing a steamer, which it proposes to insulate and utilise to relievo the pressure, so far as its own particular works are concerned. She will also carry wool or other produce in her non-insulated space. The results of tins experiment will, no doubt, he watched with interest by other Meat Freezing ompanies. j

What the course of prices will be after the cessation of Government purchase is largely a matter of conjecture. Some linos, owing to scarcity of supplies, may temporarily advance, and others recede. But whatever the immediate result may bo, producers will do well to keep the ’probability of an ultimate recession in prices, and base their business calculations accordingly. The report also referred to exchange difficulties and . possible solution.

[ free sure on space compels ns to hold over till next edition same interesting remarks on the State Bank suggestion. ] #