BANK OF NEW ZEALAND.

Timaru Herald, Volume XCVIII, 20 June 1925, Page 13

BANK OF NEW ZEALAND.

ANNUAL MEETING OF PROPRIETORS. ANOTHER PROSPEROUS YEAR, (Special nto thcr “Herald” ).r.... -'• 1 - WELLINGTON, Juno'l9.. annual meeting of the proprietors' "of “‘tho Bunk' of New Zealand tvas'held to-day, When tho annual report and balance sheet were adopted without discussion, and a vote of thanks to the directors and staff was carried unanimously. In moving tho adoption of the report and balance , sheet, tho Chairman of .Directors (Sir- George Elliot) delivered ' a verylengthy speech, in which lie reviewed tho principal features of the ■ Bailie’s pper'itions, and also discussed exehango• and currency generally, tho current position pertaining to the Dominion’s primary products, imports .anti exports, and tho final phase of tho moratorium!' YEAR’S OPERATIONS. The chairman said the issue of the new capital, via., 375,000 preference “ B” shares and 750,000 ordinary shares of £1 each, which was contemplated last year, has been successfully carried through. Tho amount, £551,405, appearing under tho heading of “new skaro account” in tho balance sheet, represents the purchase monoy of new shares applied for up to - 31st' March last. So far, 743,447 ordinary .shares have been applied for. Shares not applied for by 30th. June, and the fractional shares, will bo offered by tender to-holders of ordinary shares on the register on the 10th of July next. , i /AVhen fiie new shares' are allotted-and the.'' past .year’s profits are ■ dealt with, capital, reserve fund, and undivided pro-fits will Stand thus: —Preference capital held by Government of New Zealand, £1,875,000; shard Capital, £3,750,000 ; 4 per cent, guaranteed stock, £529,988; reserve fund, £2,575,000; undivided profits, £513,299 ; a total of £9,243,287.

A APRGFIT AND LOSS ACCOUNT. ; The profit egrned from the ordinary Operations of the Bank for the past year amounts to £819,285. In comparing this profit with. that &-of . ..tho previous, year, it should ,be? remembered that' v the»‘''yf>ar under .review is the first complete year during which weA hayo had tho use of tho £1,125,000 of new capital paid up on Ist Octobor, 1923, arid-tiro accretion- to 'jthb reserve fund df. nearly "--£500,000 made h year ago. Note circulation shows an- increase of £96,743. deposits. Our deposits at tho balance date totalled £30,079,282, as compared with £30,501,719 in 1924—-a decrease of £422,437. Deposits from the public showed a satisfactory increase, hut Government deposits are £1,923,003 less than in tho previous year. Of the increase made by the public, amounting to £1,500,566, about half is on fixed - 'Shd tho other ' balft.y is Vdri; ■current acCpunt b,alanceS'; ;Th is'increase may bo regarded as satisfactory. It reflects to > sonic degree tho prosperity experienced by our farmer customers Muring the past year. The. increase-- of? £349,490 in bills payable find other liabilities is an ordinary fluctuation. Coin, cash balances, and deposits with bankers shows a srgall reduction of £140,028 on the previous year,’s figures. Moneyrat-gcall and short- notice,rGovernment securities, and other securities in London' are also less by £50,009. Bills receivable in London „and in transit jre - less . by £344,349.': ... New Zealand Government securities show an increase pf £887,477. ■ . The £1,125,000 received ’ from the sale of the new shares' issued to shareholders during tho year was. lent to the Government against inscribed stock, .‘bearing .at with acili-reiiey of ten years. This transaction, and tho maturing of certain other Government securities, account for this fluctuation. Australian Government securities at are less by £540,1 ; 38, owing partly to'the sale- of some’ of our securities in order to ease tho .difficult exchange position tliat -prevailed.' in Australia during the year under review. Municipal securities show a small increase, of £55,385. Advances amount to' £19,329,186, as compared with £18,787,100 at 31st March, i 924. It might, perhaps, have been expected that the causes which brought about the increase in our deposits would have led to a shrinkage in our advances, but this has not been the case. many old advances have been paid oft or materially reduced, fresh advances made during the year bring the total up to ,a slightly higher level than it stood at a year ago. It will ho noticed, however, that deposits exceed advances by a larger amount now than they did twelve months ago. Jn landed property, premises, etc., there is an increase of £84,365, caused by tho erection of new buddings, and by necessary alterations and additions made during the year. THE OUTLOOK. Sir George concluded Ins gddress with the folloiyung reierencc to me .present outlook from tiie point of view irom unanac® and trade :

’“For -the -year- ended March -last our imports amounted to £-19,821,095, wiide our ...exports, totalled £64,7V 1,138, tho difference in our favour being £4, y0u,063. ■ . It must be obvious mac this surplus is - quite inadequate to- meet tlio- amount "which is annually requ-red to pay interest on loans raised by the Government and local authorities out-o.-de the Dominion.

“It is' true that towards the end of eur liiguncuil year there w r us a considerable sunup in tho price of certain of our primary products, and that a funproportion of our exports was held over in the hope of a better market developing in the near future; but even if prices had been maintained, and alt tho ,-oods m store been shipped, though the relative position would have been improved 1 , the final balance would still nave been insufficient to justify an optimistic view of the position at tuo present moment. Any advice as to the need, tor general economy is unpalatable..., It has been given so often that I am afraid it falls on deaf ears. In .New Zealand there is not tho .-.lightest tiiwn that, in private life, people are spending too much on imported luxuries, pud it is ; time to call k halt, and consider the position. ... , , , “Ivew Zealanders particularly dislike .'fho-idea-' of., trusts and combines, and rightly so -. but wc must not lorgct that anything-'in the nature of a trust is also disliked in Great ISnuuu. tt would be unfortunate U the iormauon of pools for the management and sale of all our products were carried to such extremes as to impress our customers across the seas with the idea that, whatever the conditions were in Now Zealand,-ive-intended, cither by flooding itlio market "qr. keeping it bare, to extract the'last penny possible lor our ’Wares. " liet nio say again, that the United Kingdom is our great market, and - by-ordinary methods wc have built up an increasing business there ; but if tho idea gained currency th.afc wo intended to exploit it for all wc were worth, it is conceivable that the people generally might refrain from buying New Zealand products, and turn their attention to other lands for their renuirements. They hpvo grown accustomed to tho ordinary rules .of supply and demand, and they bear with enuahimit.v soaring prices when the supply is short, but they expect the natural fa'll in ■ mines when tho supply is plentiful. The proper storing, fih.pp’ng, and marketing of our wares is

essential, but tho greatest care should bo taken to avoid even the appearance of price-fixing or market rigging, more especially at tho present time, when everything from New Zealand is popular in tho Mother Country, and when attempts are being made to draw the bonds of the Empire closer, economically as well as socially. “When I was in tho Old Country I noticed with much gratification the high esteem in which New Zealand and New Zealanders wero liekl. Without a doubt, this favourable impression is -ttv.be.i-traced, to the men., lyho wont overseas-to’ fight the battles of tlio Empire, to tho way they lived, and to 'tfio way they died, and it behoves us that wo should be extremely careful in the future that wo do nothing to alienate the goodwill so endangered. “Wo are gradually settling down to the even tenor of our ways; bit by bib wo arc getting hack to the conditions which prevailed prior to 1914. New Zealanders possess a groat inheritance; a productive country with an equable climate where extremes are unknown; a land of lertiio plains and _ smiling uplands; a people of fine British stock as pure as that to he found ' in tho heart of England. Wo have many valuable assets, and if, minding olir own business, we exercise ordinary wisdom in the management of our affairs, the future well are of our country is assured. We shall naturally have ups and downs like others, but if we work and strive with a duo regard to. the unity and well-being of our mi«hty Empire, we in New Zealand in list, in the general prosperity, -of a united people, reap an abundant harvest.” The adoption of tlio report was seconded by Mr William Watson, and carried unanimously.