BANK OF NEW ZEALAND.

Star (Christchurch), Issue 17568, 19 June 1925, Page 11

BANK OF NEW ZEALAND.

THE ANNUAL MEETING. , REVIEW OF FINANCIAL CONDITIONS. (Special to the “ Star."! WELLINGTON, Juno 19. The annual meeting of tho proprietors of the Bank of New Zealand was hold to-day, the chairman, Sir George Elliot, presiding. Moving the adoption of the report and balance sheet, the chairman said that the issue of the new capital, 375,000 Preference “B” shares and 750,000 Ordinary shares of £1 each, had been successfully carried through. The amount, £551.105, appearing under the heading of “ New •Share Account” in tho Balance-sheet, represented the purchase money of new shares applied for up to March 31Thc Application List did not close until April 1, and allotment could nothe made until a, certain time had elapsed. Unfortunately, u small number ol shareholders had neglected either to take up the chares to which they were entitled, or to dispose of their rights.” and, as the directors iver; ah a id there might have been some misunderstanding in the matter, they had decided to extend until Juno 30 the period in which the option to pure ha to or dispose of new shares might bo exorcised. So far, 713.417 ordinary shares had been applied for. Shares not .applied for by June 30. and the fractional shares, would bo offered by tender to holders of ordinary shares on tbo register on July JO. " When the new shares were allotted and the pas" year’s profits are dealt with, capita! reserve fund, and undivided profits would stand thus:— £ Preference capital held by Ihe Government of Ncw Zealand .... 1,875,(100 Ordinary share capital . 3,750,00 J A per cent guaranteed slock 529,988 Reserve Fund . . . 2,575,000 Undivided profits 9 . 513,299 Total . 9.248.287 The profit earned from the ordinarv operations of the Bank (or tho pa.A. year amounted to £819,285. In comparing this profit with that of the previous year, it should be. remembered that thb year under review was the first complete year during which they had had tho use of the £1,125,000 of new capital paid up on October 1, 1923, and tho accretion io tho reserve fund of nearly £500,000 made a. year ago. Tho deposits at the balance dale totalled £30,079,282, as compared with £30.501.719 in 1921- a decrease ol £122,437. Deposits fi'ovn* tho public showed a, satisfactory increase, but Government deposits were £1,923,003 less than in tho previous year. Of ihe increase made bv the public, amounting to £1.500,560, about half was on fixed deposit and the other half was in current account balances. This increase might he regarded as satisfactory. It reflected to some degree tho prosperity experienced by farmer cusduring the past year. New Zealand Government securities showed an increase of £887.477. Tbo £1,125.000 received from tho sale ol flic lien- shares issued to shareholders durintc tho year, was lent io the (iov. ernment a-ainst Inscribed Stock. War. !n K interest at 3$ per cent until a currency of ten years. This transaction, and tho maturing of certain other Government securities, accounted for tho fluctuation. Advances amounted to £19,329 IBS as compared with £18.787.100 at March’ 31. 1921. It, might, perhaps, have hcou expected that tho causes which brought about the increase in our deposits would have led to a shrinkage m our advances, hut this, has not boon n.?ne2li ‘V (IOUr K° Sa ' d “ AVhito many old advances have been paid off or materially reduced, fresh advances made during the year bring tho total up to a. slightly higher level than it stood a t a, year ago. It will be noted however, that deposits exceed advances by a larger amount now than tbev did h dem T n ae "i ' T, ’ e ™°vcment nk t-f S , ( ° ,’ ,er than Government deposits) find advances of the six b-n,k<? that did business in New tv, 1* ' i were disclosed by the Government q,larteriy return for tho past the .ears which were as follows: " ’ M'rcb. Deposit, Advance, aSSSSI DM 47,193,000 52.1t5.000 5.201 000 £ !2S ««.«>.«» 6,131,t00 | 102., 43.460.000 43,821.000 JS'M 47.053.001) 44.403.000 " San'S! 1025 40.897,000 43,730,000 O.'tGLOOO -Vftcr reviewing the financial and commercial position the chairman deoutkL EO,ne aUellUon to the general “ For the year ended Alarch last.” no. said, “our imports amounted t » £1,9,821,005, While „nr exports totalled *04,,, 1,138, the difference in our 1 arcin' being £4.930.003. It must be obvious that this surplus is quite inadequate to meet the amount which is annually requ,,-ed to pay interest on loans raised by the Government and Local Authorities outside tho Dominion. | . 15 G;ue that towards the end of the financial year there was •, j s"ierable. slump in tho prieo of certain ! '.’ f . oul ' primary products, and that, a I lair proportion of our exports was held over in the hope of a better market ,lc j rclping in the near future: h,„ ‘even i if prices had been maintained and all I '}>e gocKl.s in store been shipped, though ; ,iIC! rein, n o position would have been ! improved, the final balance- would have | still been insufficient to justifv an opj timistio view of the position at tli» present moment. Any advice as to j the. need lor general economy is tin j palatable. It has been given‘so often I that T a in, all-aid it falls on deaf ears In New Zealand there is not the slight! i p ‘ t dmlbt IhM. in private life, people s ™ spending 100 much on imported , luxuries, and ~ is time to. call a halt ! Jind consider Ihe position. “ Xew Zeahniders parliculnrl.v disi ■'•'O tlie ol trusts find combine*. : an<l rightly so ; hut wc must not, for ! Be* (hat anything in tho nature, of j a. trust, is also disliked in Great Brit- i I am. It would he unfortunate if the I formation < >t pools for th® management [ and sale ol all our products were c ir- | ried to such extremes as to impress „„r j customers across the seas with the idea. that, whatever the conditions were in New Zealand, we intended, cither by flooding the market or bv keeping ii hare, io extract tlm la^t penny possible tor our wares. Let me say again, that the United Kingdom ; is our great, marker, and by ordinary j methods -wo Tia.v* built up an i n . • creaMng business there: but. if t| ie i idea gained currency that 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 I heir attention to other lands for their requirements. They have grown accustomed to the ordinary rules of supply and demand, and th®.' bear with j equanimity soaring prices when supply ( is short, but they expect the natural ,

fall in values when the supply is nlontihil. Tho proper storing, shipping and marketing of our wares is essential, but the greatest care should l>e taken to avoid even tho appearance of price-fixing or market rigging, more especially at the pcrscnL time, when everything from New Zealand is popu3av v in the Mother Country, and when attempts are being made to draw the bonds of Empire closer, economically as well as socially. •• 'When I was in tho Old Country recently I noticed with much gratification tiie high esteem in which New Zealand and New Zealanders were held. Without a doubt, this favourable impression is io be traced to the men who went overseas to light iho battles of the Empire, to the wav they lived, and to the way they died, ami ii behoves us that, we should he extremely careful in the future that we> uo nothing to alienate the goodwill so engendered. “We are gradually settling down i to ihe even tenor ol our ways; bit. | by bit. we arc gelling back to conditions which prevailed prior to 1914. New Zealanders possess a great inheritance: a prod country with •til equable climate, where extremes arc unknown; a land of fertile plains and smiling uplands: a people of fine British sleek as pur«* as that to ho iound in the heart oi England. "Wo have many valuable assets, and if, minding our own business, wc exerc-Tv-ordinary wisdom in ihe general management of ovir affairs, the future welfare of our country is assured. We .•dial] naiurallv have ups and downs like- ol hors, lull if we work and strive with a due regard to the unity and well-being of all the varied sections of our mighty Empire, we in New Zealand must, in 1 lie general prosperity of a united people, reap an abundant harvest 4he report and Kalanof rheet. were ad<*pted without discussioti A vote of thanks to the director" and staff was unanimous!v passed.