BANK OF NEW ZEALAND

Timaru Herald, Volume XIC, Issue 13462, 7 December 1907, Page 6

BANK OF NEW ZEALAND

HALF-YEARLY meeting,

Per Press .Association,

WELLINGTON, Dec. 6.

At ihe half-yearly meeting of the Bank of New Zealand, the chairman referred to fall in wool, hemp, mutton. tallow and pelts, but did not consider that- tlia values obtained left • much cause for complaint, The fall -was probably in sympathy with the disturbed state of the xnor.ey market, and rates, would improve with it. Adverting to the financial crisis, lie predicted if the H per cent. Bank of England rate were maintained for long, money must harden in New Zealand also. The crisis in America was attributed to the New York bankers trading on a narrow margin of gold and their encouragement of vast credit. He issued a note of warning in connection with the system in New Zealand of several large trading concerns competing for deposits, and allowing interest on current bank balances. He had recently examined the published balance-sheets of t~even companies, and found that their indebtedness in "this respect was £535,516. If by statute banks were compelled to keep securities to the value of 6s 8d in the £ on their liabilities, payable on demand, it was only right that a similar obligation should ba cast on these companies; It was gratifying to say that the business and tue profits of the bank, so far, had been well maintained, and prospects were encouraging. Mr Martin Kennedy, who had just'returned from Home,, had made himself thoroughly acquainted with their business- in London, and they would be pleased to hear that they had passed practically unscathed through the recent trying times. During the year realisations ' of properties taken over from the Asset,jj Beard had been effected to the extent of £332,646, and the total left now stood at £585,565. The Board proposed to pay an interim dividend of 5 per cent, on both classes of shares. Mr Martin Kennedy, being unopposed, was declared re-elected to the Board, Air Martin Kennedy quoted particulars of • the capital and reserves of the other banking institutions doing business in the colony with, a view to showing that if £150,C00 wa3 added to the reserve, the time had arrived for an increase of the dividend. - In reply to this the chairman of directors quoted the amounts of paid up capital and reserves of other banking in.vtitutions. As a set off to Air Kennedy, he declared it was inadvisable to attempt to increasa the dividend until such time us the reserves of the Bank of New Zealand had fairly approached those of other institutions with which it competed. Mr Kennedy said that while the reserves of other institutions exceed these of the Bank of New Zealand it had to be remembered that their brsiness consisted of operations which extended largely throughout Australia, where there was always a possibility of big losses through drought. It- was in Australia that the

Bank of' New Zealand had lost largely in the past and while it still carried on business there, it now dealt in a giltedged class of business. Tha meeting passed a vote of thanks to the staff