INFORMATION WANTED.

Stratford Evening Post, Volume XXXIV, Issue 84, 4 December 1912, Page 6

INFORMATION WANTED.

BY THE BANK’S SHAREHOLDERS (Per Press Association.) Wellington, December 4. At the Bank of New Zealand meeting a discussion took place on the question of the reserve securities held in London. The matter was introduced by Mr Macintosh, who asked the following questions: “What is the exact nature of the British Government securities held to the value oi £500,000 as part investment for reserve fund?” “What was the cost uf these securities,- and what is the market value to-day?” “If there has been any depreciation, has full provision been made?” “When was the purchase made, and at whose instance did it have approval of the London Board?” The chairman said it would be most undesirable if such detailed information were given, not that there was any difficulty in replying hut the establishment of such a precedent would he a very bad one. Mr Kennedy added: “May 1 ask Mr Macintosh to accept. my assurance that on all securities held by the bank ample provision has been made at the end of each financial year for such depreciation as has occurred in the value of such securities during the year. . That course had always been followed.” Mr Macintosh thanked the chairman for such informat-on as be bad given, but the point was, Should the Board invest in speculative securities? It did not matter to him whether the question was answered or not, hut shareholders ought to know whether the. course adopted should have been followed. '

The chairman added that he supported the course. Ho was in London in 1907, and saw a good opportunity for investing in Government securities and the Board here authorised the Loudon Board to do it. To the bank It was better than stock at current rate in an ordinary market. A shareholder asked whether British stock was highly speculative stock. —The chairman said there is scarcely a bank in Australia that does not do it. If any one calls consols highly speculative, the probability is that we have some of them. No doubt they had taken a downward tendency, he added, but he' pointed out that they got the same rate of interest.