BANK OF NEW ZEALAND

Wanganui Chronicle, Volume XII, Issue 945, 7 November 1868, Page 2

BANK OF NEW ZEALAND

(From the Auckland Express, October.) The half-yearly general meeting of the proprietors of this bank was held at the bank-house, Queen-street, on Thursday, at noon. T. Russell, Esq., occupied the chair, and there was a good attendance of shareholders. The advertisement convening the meeting and the minutes of the last halfyearly meeting, in April last, having been

read by the Inspector, the following report was submitted to the meeting : The directors beg to submit the following statement of the result of the past half-year s operations, and considering the many causes which have combined to lessen banking profits during that period, they trust the statement will be deemed satisfactory. The net profit, after making liberal provision for every bad or doubtful dependency, and the customary appropriations in reduction of bank premises and furniture accounts, amounts to £38,012 5s 9d ; to which has to be added —balance of undivided profit at3lst March £8,042 10s 7d, leaving now available for division £46,054 16s 4d ; of which the directors recommend the following appropriation -To payment, of dividend at the rate of 10 per cent per annum £25,000 ; bonus of 5s per share, equal to 5 per cent per annum £12,500; balance carried to profit and loss new account £8,554, 16s 4d. The Chairman said it now became his duty to move the adoption of the. report which they had just heard read, and its satisfactory figures would show for themselves and did not call for any lengthened remarks from himself. He must congratulate the proprietors on the very satisfactory state of the bank affairs. The profits were increased and were this half-year about £IO,OOO more than in the preceding one, and this was in spite of causes operating to lessen banking profits. Although they had got over the immediate effects of the commercial panic of 1866-7 they had only just got through the legacy of bad and doubtful debt then bequeathed to them, and the manner in which the bank had come through the heavy strain put upon it was subject upon which he could most cordially congratulate the proprietors. This panic came upon them suddenly without notice, and was followed by a lengthened depression. At the time it reached them in New Zealand the bank was doing, as it is still doing, the largest banking business in the colony, and the operations of the bank then, as now, spread over a large area, yet, notwithstanding all this, the Bank of New Zealand came out of this severe ordeal unscathed, without the loss of one single shilling of capital, and had paid its dividends of 10 and. 15 per cent. This, too, in the face of an oppressive Stamp Duty, which tended to lessen their operations, and which cost them no less than j£6,000 per year, which was of itself a sum almost enough to raise the present dividend to 17 per cent, as it used to be. They had, therefore, ample proof of the strong position of the bank, and its good management. The profits would have been larger if they had riot had such a large balance lying in London, where money was just now very cheap, and producing but small interest. He mentioned this not by way of apologising for the present' dividend not being larger, nor with a view of holding out prospects of largely increased dividends in the future, for the directors proposed to proceed in their mode of carrying on the business with caution and safety. The directors, no doubt, by pushing and pressing the business of the bank might temporarily raise the dividend to 17 or 20 per cent., but then some fine morning they might find they’d have to write off a large sum from the reserved fund, and he thought the safe and cautious mode of doing business far better. The figures set down in Die report would, as he had said, speak for themselves, and required him to say very little. Since their last meeting, one of their number who had been an old friend .of the institution since its foundation, Mr. Ridings, had been removed by death, and the directors had nominated’in his place Mr. W. C. Wilson. He now moved the adoption oi the r6 Mr. G. B. Owen seconded the motion, which was put and carried. ... Mr. Mackelvie was elected director m room of Mr. Stone who retires. Mr. Stone, the retiring director, was then elected without opposition to the post of auditor, vacated by Mr. W. I. Taylor. _ Mr. J. O’Neil then moved, and Major Paul seconded, a vote of thanks to the chairman, directors, manager, and officers, of the institution, which was put to the meeting and carried unanimously. The meeting which appeared to be a most satisfactory one, then terminated.