WEDNESDAY, JUNE 12, 1907s THE BANK OF NEW „' ZEALAND.

Taranaki Herald, Volume LIV, Issue 1350, 12 June 1907, Page 4

WEDNESDAY, JUNE 12, 1907 THE BANK OF NEW ZEALAND.

Good as was the balance-sheet of the Bank of New Zealand for the year ended March 31st, 1906, that for the year ended March, 31st, 1907, was even better, the profits, after providing for expenses oi management, all bad and doubtful debts, and after making provision for annual' donation to the Provident Fund and for bonus to staff) having amounted to £3^o; 880, as against £330,329. *AfW .wMting" down Bank* premises ;and furniture, meeting interest on guaranteed stock, and pacing interim dividends of five per cent, ori preference and ordinary shares, there remains a sum of £244,880 available for distribution, which the directors propose should He* disposed of as follows : — Payment of dividends at the £gte:qf Wo and a half per cent/ on .preference shares and' five per cent, on orxlin* ary shares, transfer to reserve, fund £168,705, and grant to officers' provident fund £7,0p0* leaving a balance of £31,675 to be [carried forward. It will be noticed that there i 5 no payment to the v Assets Realisation Boarcff which in former years has absorb bed bo large a share of the banking profits. This is due to the 'fact | that the remaining assets were transferred to the Board during the year, the Board being dissolved as the law provided. The assets taken over are seVdown "in the balance-sheet, at £758,,19$* r of which £43&, 654 represents^balances owing by purchasers and £322, 544 unrealisedlassets. The latter, it is hoped, .wil^be all disposed of during the next twelve .months and then the Bank will be clear of the old liabilities, which so nearly wrecked it. / The ordinary business of the institution shows a

tfatisfab^Qiy feifmnsiioft, "and tlie position as disclosed by the statement of assets and liabilities is very strong.,, iuo less a sum thai* £2,379,618 being held in coin and cash balances and bullion on hand in transit, wjiile what may be called liquid assets in London and in the. colony represent a very "large sum. Thorough soundness has been the aim of the directors, and they have achieved it, while" a,t the same time an exceedingly profitable business .has been carried on', enabling a profit of £350, 880 to be made upon a total capital, including the million of guaranteed stock, of two millions sterling. Two years ago Mr. Martin, Kennedy, one- of the directors, suggested at the annual that the dividend should be limited to five per .cent." in any one year until £100,000 had been added to the reserve fund, until that fund 'reached a million.' In" his.* most sanguine, moments lie eauld-scarce-ly have expected that it would so soon be possible for the $ank to pay a dividend of ten per cenik. on its ordinary shares and to pla,cei £168,705 to the reserve fund as the result* of a year's operations. The reserve fund now amounts to £250, 00Q,' and it is possible to rely with] almost absolute certainty, evehil the nekt few years are' not quite so prosperous as recent ones, upon this fund exceeding by 1914 the million which will then be required to pay off the stock]: now j guaranteed by. the colony. The remarkable prosperity enjoyed by the colony has" of course enabled the.se results to .be achieved, bujb to j the careful, yet enterprising', pplicy of the directors, and:to the,very capable services of the general manager and the staff under him must be given a large share of (the dredit/ In this connection, it is satisfactory -to uptime 4b&t the i)ro<'Ddrtiq^ < of working j to- i Yr^As i profits - '(&T ' hoi^afccr^ ijhajrj pfOsrperity, .i§ enpaufagmg*' any-j tMng of the nature .'of. extravagance .in the management. • 4:s long as ordinary prudence is observed in the selection of business land us long as due economy is practised in the management there is

■* r - no reason to fear that the Bank

will ever look back upon the road of adversity .whick it ;has traversed. Rather is it -likely that every year will see its position improved.