SUCCESSFUL YEAR

Taranaki Daily News, 16 April 1935, Page 9

SUCCESSFUL YEAR

POSITION STRENGTHENED NEW PLYMOUTH SAVINGS BANK. a INCREASE IN DEPOSITORS SHOWN. ANNUAL REPORT TO TRUSTEES. A further strengthened financial position and an increase in the number of depositors was disclosed at the 85th. annual meeting of the trustees of the New Plymouth Savings'Bank yesterday, when there were present Mr. R. Cock (chairman), and the Hon. J. McLeod, Messrs. G. W. Browne, C. E. Bellringer, W. C. Weston, R. H. George and L. A. Nolan. “It must be considered very satisfactory to note that, notwithstanding the most trying year this bank has never .been in such a strong position,” stated the chairman's report. “In spite of the economic depression the confidence of the public has increased. The balancesheet shows the balances, due to depositors at £693,089 13s lOd, an increase of £77,045 10s 7d for the year. To have gained over 900 new depositors during the year is convincing evidence of the popularity of the institution.”

The total of deposits for the year was shown'at £408,815 4s Bd, against £368,878 14s 7d last year, an increase of £39,936 10s Id. The withdrawals, £350,267 15s Bd, showed an increase of £20,449 12s Id, but the deposits were £58,547 9s in excess of the withdrawals. The interest credited to depositors was £18,744 12s sd, an increase of £1782 15s on last year. Although mortgages on farm lands had to some extent become unpopular investments with the general public, continued the report, the trustees of the bank felt that their funds should be available for advances on good freehold securities, and it was felt that this policy had been appreciated by the general public. The sum of £72,021 had been advanced on new mortgages or as further advances during the year, and at the close of the year the total of first mortgages held on freehold securities amounted to £557,335. Loans repaid amounted to £7201 Ils 6d. LIQUID RESOURCES. Under the Savings Bank Act it was necessary for the bank to hold 10 per cent, of its total funds in liquid resources. The accounts showed the total funds of the bank to be £743,685 8s 2d. The cash held was £42,197 2s Bd, and New Zealand Government inscribed stock (at cost) £87,824 6s 4d, making a total of £130,021 9s, almost twice the amount required by the Act. The position had never been as sound as it was to-day. On March 1 the Post Office Savings Bank decided not to allow the bank interest on more than £2OOO. It therefore became necessary to withdraw £lB,OOO from that bank and to keep that amount as liquid cash. The board decided to invest the greater part in New Zealand Government inscribed stock, the amount so invested being £15,839 6s 4d. The interest collected on mortgages and investments was £27,599 4s 3d, an increase of £2254 13s Id. Taking all things into consideration, the interest on mortgages had been paid very well. The low price ruling for dairy produce had made it very difficult for many mortgagors to carry on, but on the whole they met their accounts very satisfactorily. With decreasing income many mortgagor farmers found it impossible to provide as much top-dress-ing as they desired. In many such cases close inspections and investigation of the position had been made by the trustees and ways frequently devised to ensure production being fully' maintained' and depreciation of the securities prevented. MORTGAGES SATISFACTORY.

At the present time the bank had 407 mortgages. Only eight were causing any anxiety. Some were in arrears, but all were doing their utmost to meet the obligation. On March 1 407 interest notices were sent out and 375 payments had been made. This fact was in itself a matter of congratulation to the board and was a guarantee to the public that the utmost care had been exercised' in selecting securities.

“On a previous occasion,” said the’ chairman, “I impressed upon the farmers the value of the pig industry. Many of the mortgagors have taken my advice, much to their benefit, and I still maintain that it is a very valuable addition to the dairy farmer.” The profit for the year was £4105 17s 7d. This amount had been placed to the profit and loss appropriation account and after making provision for £892 Is Id income tax, the bank’s reserve now stood at £43,135 3s 3d. The chairman thanked the trustees for their unanimous vote in assisting him in granting the New Plymouth Savings Bank scholarship. It had been won by a lad attending the Uruti School. The trustees hoped he would make full use of his opportunity to go through the university and qualify for some position that will assist the farming community. “The reason I have been so keen on the scholarship,” said Mr. Cock, “is that I am firmly convinced we will find a man in the making who I hope wjll follow in Lord Rutherford’s steps. ’ I want him to become a profe'ssor in the university and devote his time to lecturing on the primary industry in New Zealand.” FITZROY BRANCH. Very good work was being done at the Fitzroy branch. The deposits this year amounted to £25,927 14s 7d, and withdrawals to £20,447 14s, the surplus of deposits being £4480 0s 7d. “I would again appeal to you to consider seriously having a home of our own in this locality,” said Mr. Cock. “I am satisfied the business warrants it, and I am sure a building could be erected and equipped at a cost not exceeding £2OOO. This would be a good investment for our money.

“I take this opportunity of thanking you for your able assistance and careful consideration of the bank’s affairs, and would like to express my appreciation of the manager’s services, the staff and auditors for the efficient manner in which they have carried out their duties. I am sure we can look to the future with every confidence.” Seconding the report, Mr. Browne congratulated the chairman and the manager on a very satisfactory year’s work. Regarding mortgages. Mr. Browne said it appeared the bank’s policy of lending on broad acres had been vindicated, and he expressed the belief that the greatest of the difficulties that had faced the institution had been overcome. Mr. Browne said the trustees fully appreciated the great interest the chairman had taken in the affairs of the bank, and paid a tribute to the loyal and efficient services of the manager and staff. Congratulations, he said, were warranted, as the figures of the year showed. It was to be hoped Mr. Cock’s health would improve and he w'ould be able to guide the affairs of the bank for a long time to come.

Messrs. Weston, George, Bellringer and Nolan also added congratulations to the chairman, manager and staff, and referred to the pleasing increase of business transacted by the Fitzroy branch of the bank. Mr. G. E. Dinniss, manager, thanked the trustees for their reference to the efficiency of the staff. Messrs. Duff and Wynyard were reappointed auditors and Mr. Bellringer was appointed the bank’s representative on the Mayor’s Relief Council.