THE COLONIST. Published Daily.-Morning. Nelson, Wednesday, July 10, 1901. THE BANK OF NEW ZEALAND.

Colonist, Volume XLVI, Issue 10143, 10 July 1901, Page 2

THE COLONIST. Published Daily.-Morning. Nelson, Wednesday, July 10, 1901. THE BANK OF NEW ZEALAND.

The b&lanea sbset of the Bank of New Zealand for the yeir which ended on th« Slit March last has now been presented to Parliament, and it muat be gratifying to every one to observe that the institution is makiDg steady progre33. Tbe gross profits for the year were £469,291. or £55,215 more than in the previous year, and £89,960 more thtu in the year before that, while the net profit shows a still larger advance. For the year ended with last March the net profit was £300,242, as against £242,520, in tne previous year, and it was only £191,420 in tha year 1898-9, so that the net profit last 5 ear was £57,722 more than in the previous year, and £108,822 more than in the year before that. It may be pointed out that the expenses of management for the last year show a substantial reduction of some £2,5001 Of the net profit of £800.242, a sum of £80,000 w»s payable as interest on guaranteed Btobfc, this being an annual charge, while; a further sum of £9,677 was paid as interest on preferred shares till" time *of purckaso. (lii the pre-

ivious year £17,500 was paid as interest on preferred shares.) Deducting the £89,577, there was £210,665 available, as compared with £145,020 in the previous year, and the sum has been devoted as follows : — To extinguish debenture Conversion Account . . . . . . £35,360 i

Ti;e comparison shows how considerably the Bank has strengthened its position, and at the same time how materially it has lessened the contingent liability of the Colony. That the business of the Bank has extended is shown by the fact that the deposits have increased by nearly £100,000, and the note circulation by close on £50,000, while the discount business has largely increased. The liabilities, including the two million Government guarantee and £50,000 balance of profit to be paid the Assets Board, amount to £13,509,463, and the list of assets, which speak for themselves, show that the advances have increased by nearly £150,000, and the coin, bullion, and money at short call is also considerably larger. In his speech at Gokitika early in May the Premier intimated that the net profits of the Bank of New Zealand for the year amounted to about £300,000, and he remarked that although the shareholders might be some time before they got interest on the old and new capital, still their capital was saved. Me proceeded to say that to those entrusted with the management of the Bank he would suggest that after paying the interest on guaranteed stock, and the amount due to the Realisation Board, and in payment of the interest on preferred shares, they should this year, out of the net profits, wipe out the Colonial Bank goodwill, debenture conversion account, the Colonial Bank premises, contingent deficits of the Assets Company, and make reduction of the value in premises, fiir.iitni-e, <feu. x \Yiua thid has been

done, he said, they will have a clean balance sheet, and thereafter, out of their net profits, can pay off the difference between the actual value of the Kealisation Board's assets and the amount of debentures issued. The balance sheet shows that the institution is being steered in a safe course, and the day is rapidly approaching when the troubles of the past will be entirely surmounted.

Extinguishment of Colonial Bank goodwill 60,000 Written off Estate Co.'s assets . . 17,000 Written off Colonial Bank Property 10,000 Written off Bank property . . 38,395 Assets Eealisation Board . . . . 50,000 Total £210,665 In the previoii3 year the balance was devoted to the following purposes : — Written off Estates Co.'s assets . . £70,371 „ Debenture Conversion Account 14,649 Written off Colonial Bank Purchase Goodwill Account . . 10,000 Payment of Assets Realisation Board 50,000 Total £145,020