SATISFACTORY YEAR

Southland Times, Issue 21849, 28 October 1932, Page 3

SATISFACTORY YEAR

PERMANENT INVESTMENT ASSOCIATION. EIGHTEENTH ANNUAL MEETING. The eighteenth annual general meeting of the Permanent Investment and Loan Association of Southland was held last evening, the chairman (Mr C. J. Broad) presiding over an attendance of fifteen. “The depression which commenced in 1930 and continued throughout 1931 has been very acute during the past twelve months and has adversely affected all financial institutions to a more or less degree,” said the chairman in moving the adoption of the annual report and balance-sheet. “The economic disturbance which is world-wide has particularly hit hard those countries dependent upon primary production, such as New Zealand and Australia. While there is an improvement in the outlook at the moment, it is evident the Dominion is not yet clear of its difficulties, but there is reason to hope that the improvement will continue. The benefits anticipated as a result of the Ottawa Conference should soon be in evidence. “The slump in the building trade has restricted the operations of the association during the year, the amount advanced on mortgage being £28,466 14/4. The campaign inaugurated by the Allied Building Trades to stimulate building and renovations, with the object of providing work for unemployed tradesmen, comes at an opportune time, and has the hearty support of the association, the directors being prepared to make advances, and assist shareholders and others in every way. “During the year the National Expenditure Adjustment Act came into operation, and this has had the effect of considerably reducing the amount of interest that would have accrued had circumstances been otherwise. The result of this recent legislation accounts for the lesser profit shown this year in the balance-sheet under review. For only six months the reduced rate of interest operated, but next year the full twelve months will apply, and will continue till March 31, 1935, on all advances current on March 31, 1932. Next year, and in subsequent years, the reduction of interest income, however, should be counterbalanced by the lower rate of interest now ruling for deposits as enacted by Parliament. In every case the directors are honouring current obligations to depositors. “The result of the year’s operations, notwithstanding the difficult times we are experiencing, cannot be regarded as other than satisfactory. The profit and loss account shows a credit of £5,113 17/1 as against £5369 12/3 last year. It is proposed to apportion this as follows: Dividend of 6£ per cent. on Capital “A” shares £2722 10 6 To credit holders of “B” and “C” shares 6J p.c. 827 2 0 £3549 12 6 To transfer to Security Depreciation Reserve 634 10 9 Balance carried forward 929 13 10 £5113 17 1

“Our reserve fund has been maintained at £15,500, any losses sustained during the year having been met from Security Depreciation Reserve Account. In this connection it is pleasing to note this fund was built up entirely from profits derived from purchase of Star Bowkett Societies, and from premiums obtained on sale of Capital “A” shares, so that any writing off to date has not been at the expense of shareholders. “I sincerely trust that during the coming year business generally will improve to the benefit of all classes of the community. I am pleased to have this opportunity of moving a hearty vote of thanks to the members of the staff for their loyal and efficient services during the past twelve months. From Mr Pilcher downward, each and all have done their work faithfully and well, and have the interests of the association at heart.” In seconding the motion Mr W. A. Oft said that it was most satisfactory to note that the association had approximately £9OOO in liquid cash. This was due to the judiciously conservative oversight of the directors. The motion was carried without further discussion. The two retiring directors, Mr R. A. Anderson, C.M.G., and Mr J. S. Baxter, were re-elected unopposed. Messrs C. E. Borne and F. A. Webb were re-elected auditors.