BANK OF NEW ZEALAND.

Taranaki Herald, Volume XLII, Issue 9652, 20 March 1893, Page 2

BANK OF NEW ZEALAND.

A RECORD OF STEADY PROGRESS. The half-yearly goneral meeting of the proprietors of th-j Bmk of New Zealand was held in London on the Ist February, the Right Hon. Sir James Fergusson, Bart., M.P., presiding. The Chairman, after a few preliminary remarks said :— Our half-year has been one of quiet work, marked by no remark able features, but it nas also been attended by a considerable increase in our regular banking business, and, in fact, by general steady progress. Our finances have In en easy, at.d our credit has been improving. We have not been involved in any way in the recent failures in Australia, nor have we had any considerable loss of our own to record. — (App'ause.) It is true that, owing to the state of commerce and finance in Australia, we have been obliged during the half-year, as a matter of prudence, to retain in hand a larger amount in coin, money at c til and at short notico, than would have otherwise been necessary, in orJer that wo might be prepare! for any emergency, the amount at the close of the half-year reaching the largo sum of nearly a million and a half. That, of course, caused [some diminution of the money whicu might have beea otherwise more profitably employed ; but the necessity for retaining such large balances seems no longer necessary, and, therefore, I hope the present half-year will be even more productive than the last. I eh uld notice, as a further feature which indu es our increased confidence, that our deposits are steadily increasing For a long time they fell off largely at this end, but now they havo been for a number of weeks steadily increasing, and I think I may say, and my colleagues v> ill agree with mo, Hiat I do not think the high rate of interest we havo been giving for deposits for long periods can bo continued. j It \\ould be unnecessaiy, and it is undosir : able; but it is also, I think, a gratifying an I satisfactory feature, that in the phces where the bank is most known the deposits fell off the least, and have increased more rapidly. In New Zealand confidence in the bank was little, if at all withdrawn, and the deposits there have gone on iucreasing in a larger ratio. Even in tho far Dorth of Scotland, where men arc more cautious — I see a frienl who shakes his head, and who, I suppose, Uiinks tliey are liable to plunge now and then— but, at all events, when once they aro frightened, it is difficult to obtai.i the r support again. But even they are thawing, and the amount of the deposits from Scotland is satisfactory. THE POSITION OF NEW ZEALAND But, after all, tho prosperity an! pro gress of the bank largely depends upon the position of the colony with which we are chiefly connected, and I am sure that these who are even bettor acquainted with New Zoaland than I am will enfirm my statement that the present position of the colony is most encouraging. It has not shared in tho severe dronghts, or in the commercial depression of Australia, and if ! in times past its administration was liberal and perhaps lavish, I think it has learned prudence by experience, and its adminis tration is now conducted by men who have raised the credit of New Zealand very high (Applause.) In fact, friends of mine intimately acquainted with affairs in that colony toll me they never had bo prosper ous a year as that which has just expired (Renewed applause.) Wo hear of population now increasing rapidly Late accounts speak of 1000 persons having arrived over those who left the colony in three days, and wo hoar, what is still hotter, that many of the3o people come to remain, as land is being freely taken up, and homesteads being erected in some of the fertile parts of the colony hitherto unoccupied, Our last telegram from our general manager in the colony, dated 25th January, siys: — " Advances and deposits are increasing; harvest and pastoral prospects fair; trade healthy; revenue coming in well ; population flowing in ; land settlement active." Well, gentlemen, we may hope and trust that the colony will continuo to be administered with prudence and economy 1 hope that the public men will ba so self-restrained that they will be able to Btem what may be rash currents of public opinion, so that they will not alarm capital from still resorting to tho colony. In times past it has gone there largoly, and its advent has been attended with admirable results for all classes, and especially the working classes. Anything which would deter further influx of capital would bo disastrous, and measures that we sho'iltl think in this country empirical and hasty would havo a bad effect, Considering tinposition of tho colony and its advantages, L think we may look forward to its achieving a great position, and to the prosperity of institutions which are lound up in its welfare. Our bank has p<issod through a period of great depression. At one time, from tho confidence o'' having large resources, and adopting too widely the system of what is called bunking iv Austra Ha, it advanced tco freely on real propeily, and when times ef deprepsion came these properties fell into our hands. Ido believe there was no need for the bank to bo put in a corner, aa it were, and that oven the largo lock up of its finances would tot havo brought about a result, which was nearly disastrous, had it not been for the unfortunate bickering and jealousies which besot what was them tho head quarters of the bunk — (Applause). Thero wo Id I aye been then no occasion to have in curred tho great expense of setting up the Bank of New Zealand Estates Company, and tho considerable diminution ot flic realisable profits which that has entailed upon you. Wo now know that these estates are coming out well, tint the liberal expenditure and prudent management which Lave boen exercised arc leading to great profile, while tho loss desira.de properties are being got rid of. Therefore, we may say with confidence that tho bunk has now emerged from its difficulties, and tint wo can look forwaid to a future of steady and substantial progress. — (Applause). Dr. Drysdalc in proposing a vote of thanks to tho Chairman said : There ie great advantage is knowing that the colony of New Zealand is doing so well New Zealand has had none of tho dro.ights of Australia. It is tho healthiest country in tho world, ani has the lowest death r.ito with which I am acquainted, being o .l\ one half that of our own illustrious island, ao that the people who go thero are in no danger of having malaria or nnyth ng of tho kind, 'lhoy have plenty to eat, bo cause they havo about 19,000,G00 sheep as far as I know, and a very large number . f cattle aud pigs. Thoy huve plonly to eat, and the climate is extremely wholesome, and I have no doubt that if this bank ontinues to ho well managed, us I mil mre il is now, thire is no necessity why there should bo any danger in the future. — (Appluuso). Mr C.t tor seconded tinresolution, which was put and ca lied by acclamation. Tho Financial Times, refoiring to the meeting, says :— The Bank of Now Zealand has reformed, and is making tteu >y progress tow rdR regaining tho pluco in the front rank which it onco he'd Wo have much more pleasure in putting thoso opinions on record than wo should havo in slating that the smaller fry of tho Australasian press had become civil to I lie Financial Times. There was a certain irony of fato in Sir James Fcrfiuston'h presiding over yesterday's mooting of the Bank of Now Zoiilnnd, and this fact he seems to have rccoguibed. " I wus at n mooting," lie Haid, "much les salisAx-lory when wo lesolved to take over the head office. I told you then that I would not I )ea.ve the bank until it was in belter

circumstances, and I now have the pleasure of presiding in happier times. " Sir James Fergusson, we imagine, was prctnnl at not only one but several meetings when the position was less satisfactory, though tbo fact had not been publicly acknowledged : but we are glad to see bo prominent a member of the old board taking the chair now, frankly admitting bygone errors and with these in his mind, speaking hopefully of the future. Wo do not expect the Bank of New Zealand to go ahoid rapidly. We should be sorry — very torry — to see it do so. Tho only means by which under the present circumstances, an Australasian bank can make any sensational advance is by overborrowing from British depositors, and this result can, under the same circumstances, be obtained only by offering excessive rates for fixed deposits. At the last meeting of tho Bank of Now Zealand Mr Glyn gave the satisfactory information that the deposits lost in this country were being replaced by deposits from local sources. At yesterday's meeting Sir James Fergusson said that the deposits were now steadily increasing, and that a reduction of the rate of interest would Boon have to be made, adding that the deposits in tho colony have gone on increasing in a largor ratio than lure. These facts are very gratifying to all interested In the bank ir in the colony, and we feel some reason for confidence that the present directors will not fall into the old mistake of offering unduel attractions for British depositors in order! to inflate tho volume oi their total! business If statistics would be published! of the proportions in the various Aus-| tralasian banks of British to colonial I liabilities, the re i ult would bo startling. ' We do not question tho statement that these banks must come here for a consider - able proportion of their money. But they have no right to m .ke that proportion an overwhelming one. This hae been recognised long ago by tho older backs and those which have transgressed in that respect hava suffered accordingly. Amongst tho latter class has been tho Bank of New Zealand, but the announcement of its having now seen the error of its ways is none the less impressive, because it is made in guarded terms by the Right Hon. Sir James Fergusson — a gentleman who has the very beat reason for knowing that the former methods of the bank did n t lead into paths of pleasantness."