The Taranaki Herald. (DAILY EVENING.) FRIDAY, JUNE 27, 1913. BANK OF NEW ZEALAND.

Taranaki Herald, Volume LXI, Issue 144130, 27 June 1913, Page 2

The Taranaki Herald. (DAILY EVENING.) FRIDAY, JUNE 27, 1913. BANK OF NEW ZEALAND.

The balance-sheet of the Bank of New Zealand for the year ended March last bears favourable comparison with the. best in past years. The profits wore not quite so large as in the previous year, but the falling off was only £13,652, and this does not affect the return to the shareholders—the transfer to reserve fund is £25,000 less, but there is a larger balance carried forward to the current year than was the case in the previous year. The liabilities of the bank amount to £21,976,401 as against £21,232,316, an increase of, £74.4,085, while the assets amount to £22,259,518, an increase of £721,614. The coin and cash balances, with bullion on hand and in transit are greater by £44,416. The money at call and short notice, Government and other securities in London are greater by £764,878 and the bills receivable in London and in transit are greater by £440,860. 'lnvestments in the colonies, on the other hand, are less by £307,979, the policy of the directors having evidently been to strengthen the position in London, while some of the colonial securities have been realised. Bills discounted are rather larger, while other advances and securities and debts hold by the bank are less by £163,673. The landed property and premises show a greater value amounting to £47,389, chiefly due, as Mr. Beauchamp explained, to the purchase of new premises in Sydney and a new site in Palmerston North. Of the increase in liabilities £200,000 is accounted for by the growth of reserve fund and the balance by increased deposits. The notes in circulation were £36,286 less, while the bills payable and other liabilities remained at the same figure within a few hundreds of pounds. It will thus be seen that the directors have pursued a careful, if not a conservative policy, their aim being to maintain a thoroughly sound and strong position. In the course of his lengthy and able address, the chairman (Mr Harold Beauchamp) explained the causes which have led to the existing stringency of monetary conditions, but he was not able to hold out much hope of an early relaxation of this stringency. The causes are'too world-wide to be overcome immediately, though it is some satisfaction to know, that, next to the demands of the Balkan States on. account of the war there and of the great Powers for military and naval expenditure, the chief cause of the present condition of the money market, and of the probable continuance of that condition, is the enormous demand for money for developmental purposes, for settlement of the land in new countries and for industrial and commercial undertakings in old and new. The money spent in warfare is lost for ever, but that expended in developing natural resources gives good returns and adds to the wealth of the world, so that it is a good sign to see an active demand for money for this latter purpose. It may be that there has been a great hoarding of gold in Germany and other countries, due to the unsettled state of international politics. Ji .thatia sa is likely

to be relieved more rapidly tban would otherwise be possible, now that the horizon is clearing. Much, however, depends upon the outcome of the still disturbed Balkan situation. Mr. Beauchamp speaks very hopefully of the prospects before this Dominion. The State finances, he says, exhibit a healthy condition and the market prospects for our staple products are good. Ho offers no comment on the continued heavy importation, contenting himself with pointing to the .significant fact that the imports for the year ended March last were £6,535,867 greater than those for 1910, while exports were only £1,175,878 greater. Neither had he much to sny about the proposals to increase the capital of the bank, which are agitating the minds of shareholders at the present moment. This is a question upon which we have no space to touch to-day. For the present, however, we may heartily congratulate the management and the shareholders upon the very successful nature of the bank’s trading during the past year. i * =—=======