NEED FOR ECONOMY

Taranaki Daily News, 14 April 1932, Page 16

NEED FOR ECONOMY

POLICY OF NEW ZEALAND.

MORTGAGE COMPANY’S YEAR.

(N.Z. Herald Correspondent.)

“It is to be hoped that the Government and local authorities in New Zealand are economising to the same extent as the trading concerns, and are reversing the policy of the past—the far too-free expenditure of borrowed money with the consequent levying of undue taxation,” said Viscount Hampden, chairman of directors of the National Mortgage and Agency Company, Limited, addressing shareholders at the annual meeting in London last month. The past year, Lord Hampden said, had been the most difficult on record. The reserve fund, now standing at £293,684, showed a decrease of £72,750, being the difference between the premiums on the further issue of B shares of £2250, and the sum of £75,000 which had been .transferred, to profit and loss account as an additional provision for doubtful debts. Debentures were decreased by some £lO,OOO. Loan against securities showed an increase of £25,000. There was also a new item, loan against produce documents, £40,000. It would be noticed on the credit side that the cash on deposit at the bank in New Zealand stood at £210,000 —an increase of £190,000 compared with the preceding year. In view of the cost of transferring funds from New Zealand owing to the present rate of exchange, the directors had considered it advisable for the time being to obtain accommodation from their bankers in London. “At the present time,” said Lord Hampden, “we are pursuing a policy of caution, and are conserving our financial resources against the return to rhore normal conditions. I do not think I am being unduly optimistic in taking encouragement from the wonderful recovery that has taken place in a few short months in the financial position of this country, and with which the fortunes of New Zealand are so closely allied.” The company showed a loss of £56,700 on the year’s operations, which was met with a transfer of £7'5,000 from reserve. The dividend was reduced from 7i per cent, to 5 per cent, for the year.