BANK OF NEW ZEALAND.

Timaru Herald, Volume XLIII, Issue 3619, 7 May 1886, Page 3

BANK OF NEW ZEALAND.

(New Zealand Herald, April 29th.) The half-yearly meeting of the Bank of New Zealand was held at tho banking-house, Queen-street, Auckland, yesterday at noon. Dr J. I;. Campbell (Chairman of Directors) presided. Tho General Manager (Mr D. L. Murdoch) read tho report and balance-sheet as follows : — Forty-ninth Report of tho Directors of tho Bank of New Zealand, to tho Half-yearly General Mooting of tho Proprietors, held at tho B.inking-honso, Auckland, on Wednesday, tho 28th April, 18S6. Tho rosult of tho business of tho past halfyear ia exhibited m the following stateTho Net Profit for tho halfyear ended 31st March, after full appropriation, for all known bad and doubtful dobts, and m reduction of Bank Promises and Furnitnro Accounts, amounts to .£78,546 11 4 To which has to bo added — Balance from half-year ended 30th September, 1885 ... 27,102 17 8 Giving a total, availablo for division, of X105.G49 12 0 Which it is proposed to appropriate as follows : — To payment of Dividend at tho rate of 10 per cent per anannum ... .£50,000 0 0 To Bonus of 5s por share, eqnal to 5 por cent por annum ... 25,000 0 0 To Balanco carried to Profit and Loss Now Aooount ... 30,619 12 0 .£105,010 12 0 Tho Dividend and Bonns will bo payablo at tho Hoad Offico, Anoklnnd, to-morrow, Thursday, tho 29th instant, and nt branohea on receipt of advice. For tho Board of Directors. J. Logan Campbell, President. Aggregate Balanco-sheet of tho Bank of Now Zealand nt 31st March, 1880, inalading London Offico at 31at January, 188(i. Dr. Liabilities. £ s. d. Capital paid-np 1,000,000 0 0 EcsorvoPund G25.000 0 0 Notes m circulation 514,903 0 0 Bills payablo m oircnlation... 1,694,112 6 7 Deposits and other liabilities 10,081,422 15 11 Balunoo of profit and loss ... 105,6-19 12 0 14 6 Cr. '-' " Assets. £ . b. d. Coin and Cash Balances at Bankers 1,217,672 11 C Monoy on Bhort call m London . ... ... ...""..... 257,831 5 0 Bullion on hand and m transit 153,012 511 Government securities .., 72,735 8 0 Bills reoeivablo and securities m London ... ... 1,740,327 11 9 Bills discounted, and other debts duo to the Bank ... 10,875,617 12 5 Landed property, Bank promises, etc. ... 333,890 19 11 , : . .614,651,087 14 6 Profit and lobs Account. ' Dr ■ £ b. d. To dividond on 100,000 alines of .£lO oaoh at rate of 10 por cent por annum 50,000 0 0 To Bonus at tho rate of 5s ■ .■ ■ por share, equal to 5 per contperannnm .'.25,000 0 0 To Balance carried to Profit and Loss New Acconnt ... 30,649 12 0 .£105,649 12 0 Cr d. By Balanco from Half-yoar ended 80th September, 18S5 27,102 17 8 By Not Profit for Half-yoar ended 31st March, 1886 ... 78,516 14 4 X105,6t9 12 .0 Beserve Fund. Dr je a. d. Toßalanoe 625,000 0 0 .Cr £ b. d. By Balance from last Halfyear ... 625,000 0 0 Wo heroby certify that wo havo oxamined tho acconnts of tho Bank of New Zealand for tho half-yoar ended 31st March, 1880, and that wo have counted tho cash balances and oxamined tho bills and other seonritios held at the head offico, and compared the returns of tho branohes with tho statements m tho foregoing balance-sheet, and havo found tho samo to bo corroot. The Chairman, m moving tho ndoption of tbo report and balance sheet, said : Gentlemen, — Boforo moving tho adoption of "the report and balnnce-eheet which have juet been road, you will no doubt eipect mo os usual to offer what comment is called for by the figures put beforo you. Fully recognising the abnormal condition of business m the colonies, owing to tho continued and unexampled depression m prico of all our products m European markets, our policy has necessarily been of a restrictive character, as under existing circumstances there is no room for speculative business, and as a rule he is doing best who is doing least. Tho general desire, therefore, among tho mercantile classes, has been to confine transactions within the narrowest limits consistent with the efficient supply of tho ordinary requirements of their customers, and m this policy tho bank has lent its aid. Silll, the goneral turnover h&3 not been unsatisfactory, and, as the figures just rend will hare shovn-you, the averoge of profit for the last few years has boon well maintained. Wo still look hopefully for the long-expocted revival' m business, through recovery m prices of colonial products ; such revival, v?o feel assured, cannot bo much longer delayed, nnd though it may be taking a too sanguine view to expect a full return to prices wbioli ruled some years sinco, the present anomalous condition of markets, which leaves no profit for almost any product, can hardly be permanent. Turning to the figures of tho balance-sheet, it will bo seen that on the dohtor or liability Bide the only items which present any materiul alteration from tho previous statement is a slight decrease m deposits, which is more than accounted for m the operations of the Qovernxrenfc account. On the other side the cash equivalents, included under the headings of coin and bullion, money os short call, Government securities an. j bills

receivable, and securities m London, show some contraction, owing to tho more nctive employment of tho bank's resources' and some reduction m Government balances. It will no doubt be expected that some allusion should be made to our recent unfortunate experience m Sydney — an experience which came with as great a shock to the board as I am sure it did to the general body of shareholders. I need hardly say that Iho sensational rumours, to ivliii-li currency wns given m our public prir.ts, hud but a slender foundation. We will make a loss, but the extent of it cannot be defined until tho valuo of the defaulter's private estate i 3 tested j but, as far as we can at present judgo, the extent of onr loss ennnot exceed ten to fifteen thousand pounds, and may provo to bo much less. Tho bank m its career has been singularly exempt from such ca>"ee, and it is much to be deplored that the first serious instance Bhould havo occurred m one of tho most prominent and promising officers of the institution. As, however, his caso is still sub judice, I refrain from moro than these general comments on it. With these remarks, I beg to move the adoption of tho report and balance-sheet Mr J. M. Clark : Mr President and gentlemen, — I rise to second the ndoption of the report and balance-sheet, and m doing so I. will tako the opportunity of congratulating the shareholders upon tho result of the last half-year's operations. In tho midst of the long-continued and severe depression, results which enablo tho usual dividend and bonus to bo declared, and enablo tho balance to the credit of profit and loss account to be carried forward to be £35C0 m excess of that brought forward m tho report of the previous halfyear, cannot bo considered anything but satisfactory. Tho president m his remark?, and referring to the long-continued depression and to the prospects of a revivnl, says, that such a revival, ho hoped, could not bo much longer delayed. I think ho might havo put it a little stronger than that, and have said that this depression cannot possibly exist much longer. In this colony the depression for tho most port arises, os has been stated, from tho low prices as its mnin products. Thoso low prices cannot continue much longer, because for tho last two years thoso prices have left a loss to tho producers. Now wo may expect a riso m price from one of two tlrngs : cither from an increased consumption or a diminution m tho production. Although m soruo liltlo points wo might expect an increnso m tho consumption, such as m frozen mutton, if the arrangements were made complete rogarding selling it to the consumer at a price something like what the producer receives m tho wholesale market, with a profit addod, if these negotiations for the alteration of tl-c American tariff ii tho matter of wool come to anything possibly there may be slight inereaao m tho consumption ; but I look for an increase m theprico more from the production being lessened, All thoso who are m the worst condition for producing must abandon the business. Then how will New Zealand faro m this respect m the question of the survival of tho fittest? SJie is handicapped considerably by the heavy rate of wagoe, but even m that respect tho morcy docs not go out of tho country. She is handicapped also on acount of tho distance from market ; but other countries arc equally or more handicapped m Unit re?pcct, for m addition to a long water carriage they havo a long land ciniago, which is ovon more oxpensive than water carriage. But to niiiko up for tho points m which she is handicapped wo havo tlie soil and climate of New Zealand, we have the freedom frjm droughts, nnd wo have tho very large yield per acre. I believe Hint on account of the soil and climate |of New Zealand sho will not only hold her position a3 producer, but is destined to go forward as an agricultural country, and I believe that when the ri=o m prices takes place thut Now Zealand and tho New Zealand growers will be m a position to benefit and profit by such riso. I say again, that if your directors havo never a worso balance-sheet to place before you than the ono at this time, you will again and again have reason to be congratulated. I beg to socond tho motion for tho adoption of tho report and balancesheet. Mr F. Cherry : Boforc you, Mr Chairman, put the motion I should like to ask a question, and that is — Whether m the opinion of tho authorities, yourself and co-directors, a man who is apparently notorious as a bettor and racing man, is eligible for tho ofiico of manager of a bank ? I foil very much surprised that bucli a thing could have happened as has occurred m Sydney. The man wns notoriously engaged m betting and gambling transactions, and yet he held such an important office. I wish" to ask that question when all the directors aro hero. Mr D. L. Murdoch (General Manager) : By tho chairman's leave, I riso to answer Mr Cherry's question — Whether a gentleman who is a known bettor on tho racecourse is a !' proper man to bo on ofllcor of the bank ? I may say, Mr Cherry, that tho knowledge that Mr Holt was a confirmed bettor or speculator, if you can so put it, is wholly a piece of information since the default' was discovered. I hare on- moro than one occasion met gentlemen on tho street who havo told mo thnt they wcro aware long, long sinco that Mr Holt wns given to gambling and betting, and co "on. I think it it very much to be deplored that,, if that knowledge was within tho Ecope of shareholders they did not sound a noto of warning to tho directors ; but I for ono can say, although I was generally onco a year m Sydney, thnt I never heard a whisper — never saw an act on tho part of Mr Holt — tlmt would lead mo to supposo that he was. leading a life thnt the most trusted manager might not lend. That ho played a rubber at whist, that ho went to the racecourse and might put a five-pound note on a race, was quite within my knowledge j but surely that is not a bar to a gentleman occupying a trustworthy position, but I can assure shareholders that there was nothing, absolutely nothing, within the knowledge of tho board, or within tho knowledge of the nearest manager of tho bank to Mr Holt that would have warranted the executive calling him m question for any of his apts until this exposure. The riwtipn for the adoption of the report and balanco-shoot was pub and; carried unanimously. . . - THANKS. Bcv. Shirley Baker : I beg to movo that tho cordial thanks of this meeting bo given to the directors and officers of the bank. In doing so I can only rcitcrato what Mr Clark has so ably put beforo tho meeting with regnrd to the satisfactory position of tho bank to-day. I think it has taken some of us by surpriso that m these times of depression the bank stands so well. Not only have the usual dividend and bonus beon declared, but a largo amount hns been carried forward to credit of profit and loss account. I would also like t > observe, and I believo I do so not only for myself but on bclialf of somo of Itio sWroholdera present, that you, Mr President, nnd the directors, descrvo th inks for tho candid remarks you inado m tho report which has just been presented to tho meeting. There has been a feeling otit?itlo that all tho truth hnd not been told with regard to the defalcations of Mr Holt. I am pleased that it will go forth from this meeting that wo know now what is tho extent of tho loss the bank is likely to sustain. I think, m taking tliis course, the directors linvo not-only tho confidence of tho shareholders, but also their thanks. I should like also, if I may personally do so, to suggest something with regard to Melbourne and Sydney. In tho course of my travels I have frequently to go to tho adjacent colonies, and if I may bo permitted to throw out a suggestion for tho directors to tako into consideration, it is, whether it would not bo vfise, considering tho position we hold m these colonies, to havo a local directorate both m Sydney and Melbourne ; and, if I may say so, I hat thero bo more frequent inspection than I as hitherto, perhnpß, taken plnco. Wo cannot expect our worlhy general manager to bear all the heat and burden of the day. Could not the inspector's stuff bo increased, co tlmt thoro might bo moro regular inspection ? Wo havo the interest of llio bank at heart nnd tho welfare of this institution, and I consider that on tho success of this institution depends to a great extent the welfare of New Zenlnnd. If thero wns a moro regular inspection both of the Sydney and Melbourne branches, and I might also add tho London braich as well, it would afford great satisfaction to tho shareholders, and wo should feel that we were on a safe foundation. In anything I have said I do not wish to throw any reflection whatever ou the directors, the manager, or

officers of the bank. Considering tho depression that exists throughout the world very few could have expected such satisfactory results. llr G-. P. Pierce seconded tho motion, which was put and carried unanimously . Tho Chairman : On behalf of the directors I beg to return our hearty thanks for Iho voto which has just been passed. With regard to the observations which havo just fallon from Mr Baker, as that matter ib purely m tho executive department I shall leavo Mr Murdoch to reply, a3 he can do so with much more force than I can. Mr D. L. Murdoch (general manager) said : On behalf of tho staff I have very much plcasuro m returning to you our sinccro thanks for your vote. But on this occasion I must say that, m receiving the vote, I feel as if some apology wcro duo to to. the shareholders for the misconduct of ono of the staff, and one who had occupied such a very prominent position and been one of tho most trusted officers of the service. It is now twenty-five years since tho bank started, and this is tho first occasion on which we havo had a default of any magnitude, and it is all the more to be regretted that it should havo been tbo act of ono who, m other respects, I havo no hesitation m saying, was a man of singular qualifications, and who built up for us a business m Sydney such as under other circumstances wo had no right to expect. (Hear, heor.) It is all the more to be regretted, therefore, on that account alono, that he has been co templed, as not only to wreck his own life, but to deprivo us of bis sorvices. Ho has, however, put himself within the meshes of tho law, and no doubt just punishment will be meted out to him ; but I am sure I speak the minds of the board, nnd also of the shareholders, when I say there is no desire to import vindictivehc33 into the prosecution, and that we would to content with such a punishment as will prove to wrongdoers that they can Fcarccly expect to escapo the result of their own acts. (Hear, hear.) With regard to the Bey. Mr Baker's remarks as to more frequent inspection and tho appointment of a local board of directors m Australia, tho question of local boards has frequently been under tho considcra' ion of tho directors, but after tho most careful deliberations and inquiry we have found that boards as a rule are a detriment to institutions (hear, hear); that the public havo very much greater confidence m dealing with banks who havo no boards, and that for various reasons which I need not take up your time by recounting ; but it hag appeared to the board of this bank that it would be a disadvantage to havo local boards m Australia. As to tho question of more frequent inspection, I am very glad Mr Baker has referred to it, as it enables me to state that tbat step has already been taken, and Mr Stewart, the recent manager m Melbourne, has been appointed assistant-inspector for Australia, nnd his duty will bo periodically — as frequently ns ho feels it necessary — to visit tho various Australian branches. Mr J. M. Clark : And ho was appointed prior to Holt's misconduct. Mr Murdoch : Tbo individual appointment was mado beforo this occurred m Sydney, but, from a difficulty m filling up the managership m Melbourne, tho absolute appointment wns deferred, although Mr Stewart has for the past two or three months been doing the duties of Australian inspector. I therefore hope tbat tho minds of share holders will bo quite satisfied that every Btep posiblo iB being taken to havo ndequato inspection. As to the suggestion of Mr Baker about London, you can well suppose that thnt is a difficult matter— that wo cannot well appoint an inspector for London ; nnd it is not always convenient that an officer from the colonies can proceed to London to make an inspection, the travelling taking up so much time. But I may sny, when 1 was m London last year, I mado a most exhaustive inspection of tho branch, nnd found every thing m the most perfect order ; there was not an item that was out of order— (hear, hear) — and no doubt opportunities will from timo to timo arise to enable us to have other inspections. With these remarks, -.1 bog again to thank you most sincerely for the kind voto that you have passed, and I trust it will bo a long timo before wo have nDJv further misconduct on the part of tho staff to alludo to. Tho rough minutes wcro then road, and tho meeting terminated.