NATIONAL BANK'S YEAR

Taranaki Daily News, 26 August 1931, Page 2

NATIONAL BANK'S YEAR

CAPITAL AND EXCHANGE. . REDUCED BONUS TO STAFF. London, July 16.Reviewing the accounts of the National Bank of New Zealand at the annual meeting, the chairman, the Hon. W. Pember Reeves, said the balance-sheet showed a strong and liquid position. He mentioned that the staff bonus, which ..was £16,000 in the previous year, had. been reduced to £9OOO. Having regard to the very, few increases in salaries, the directors did not wish to cut out the bonus altogether, but unless conditions warrant it, the bonus may not be continued. ' A note appended to the balance-sheet states that “at exchange rates., current at March 31, the capital employed in Nexy Zealand and Australia shows a depreciation of' approximately £2169,000.” “This was appended for public information;- ffiiit it need not disturb you,” Mr. Reeves explained. “It can only have any practical effect if the bank were to go into liquidation and our assets at the antipodes had therefore to be realised and brought to London, and if at that time —say, a few centuries hence—the exchange rate was still standing at 10 per cent. “The' state of the exchanges in New Zealand has led to a depreciation—in theory at any rate—of the New Zealand pound as compared with the value «> of sterling in London. When I say that this depreciation is largely theoretical I mean that the purchasing power of the New Zealand pound for’internal business in the Dominion has not depreciated. On the contrary, it has become distinctly greater there during the last 18 months.” The valuation of landed property, premises and furniture in the balance-sheet is £653,215. Mr. Reeves said this value remains very greatly below both the Government tax valuation and the fair value as estimated by the bank’s managers. Rents received are equivalent to 6 per cent, on, say, £200,000, so that premises account actually used for the bank's business is about £450,0000. Replying to questions by a shareholder, the chairman said the directors were certainly not going to attempt to meddle with the pensions fund, which made all the difference to the life and health of the staff They were not going to cut down the staff, and they would face a reduction in salaries when it was necessary and not before. At present it was not necessary. The figures quoted showing a slight increase in directors’ fees were explained by an increase in income tax. The fees had remained the same.