The Timaru Herald. SATURDAY, JUNE 21, 1924. THE BANKER’S BUDGET.

Timaru Herald, Volume XCVIII, Issue 18084, 21 June 1924, Page 8

The Timaru Herald. SATURDAY, JUNE 21, 1924. THE BANKER’S BUDGET.

Although the review indulged in by the acting-chairinun oi directors of the Bank of New Zealand, at the annual meeting of proprietors, yesterday, is somewhat less pretentious than in the days of Sir Harold Beauchamp, the statement issued by Mr Watson is worthy of the closest consideration. Undoubtedly, the Bank has enjoyed a record run of profitable times, and the congratulations should bo mutual, the Dominion’s financial stability being reflected, notwithstanding what Mr Wilford may say to tho contrary, in the success of the financial institutions. Mr Watson had some really opportune remarks to make in connection with the general business outlook. He warns the public to go carefully. “I would urge one and all,” Mr Watson declared in his concluding remarks yesterday, “not to lose sight of the very important fact that economy in its wider sense is absolutely necessary to the welfare and prosperity of this country. Wo have in New Zealand, most things suitable to healthy life, but, unless our exports can be produced as cheaply as those of other countries, and unless we avoid excess of luxury in our imports, it stands to reason that, considering our heavy obligations, ultimate prosperity will not be ours. No one should idle or go slow in . his working years, the fertility of our lauds should be carefully maintained. We have one of the finest countries in the world; let us keep it so by showing example to those who will inherit it after us.” The Bank, on its part, has an important role to play in domestic and national affairs. So much depends upon the attitude of the Bank towards agriculutral and industrial development, and the- financial and commercial prosperity of the country. The Bank of New Zealand is less conservative in its policy than some other financial institutions, but the leading financial concern in the country lias large responsibilities thrust upon it, both to the customer and the nation. As the chairman declared at the annual meeting of proprietors yesterday, the Bank of New Zealand lias “for many years been steadily accumulating internal reserves to provide for the effects of any exceptional set-back which might overtake the Dominion. As this country is dependent for its welfare on the conditions of overseas markets —the course oi which we are powerless to shape —these large internal reserves against unforeseen contingencies are essential to the maintenance of the credit of the Bank and the country.” The Bank, of course, has built up large reserves by writing down its landed property, bank premises, etc. “As this asset,” the chairman stated, “it is represented in the balance sheet at very much less than actual value, we have thought it preferable to add rather more Ilian usual to the Reserves Fund and to carry forward, instead of writing down ethe value of th property and buildings.” It is interesting to mention, by way*of comparison, that, although the landed properly, bank promises, etc., are stated in the balancesheet as being worth £'352,474, at 31st March 1920, the value was given as £422,339. Undoubtedly a very large sum should have accumulated by the annual writing down of the Bank’s property. The Bank, however, has proceeded along strictly sound banking lines, and the very hand.some profit which has ••.'■uiltrd from the venr’s operations has given the Bank a stnhili t.v which should enable this s!Tibstnuti;d bankino 1 institution to weather all the s+nrme bkc.lv to descend upon Now Zealand s financial shores.