THE BANK OF NEW ZEALAND.

West Coast Times, 20 June 1912, Page 3

THE BANK OF NEW ZEALAND.

TELEGRAMS.

ANNUAL MEETING. lER PRESS ASSOCIATION.—COPYRIGHT.]WELLINGTON, June 19. The chairman of tho Bank of New Zealand, Mr Martin Kennedy, in moving tho adoption of the report and balance-sheet at the annual meeting, said they had had a good year, the profits being tho highest yet earned by the bank since the commencement in 1861. Tire deposits were less by £2,052,878 than tho figures of a year ago, the decrease being duo to the reduction in government credit balances, which in the last balance-sheet were abnormally high. Tiro ordinary deposits, both fixed and free, show a satisfactory increase. Money at short call, government and other securities in London stood at £3,316,159. That amount compared with tho previous year showed a decrease of £3,394,080, attributable to tho reduction previously mentioned in government balances, and to tho withdrawal of funds from London to meet the active demand for accommodation in the dominion. The reduction In liabilities rendered the maintenance of a high cash reserve last year uncalled for. During the yea ■ there had been a strong demand on tho banks and other financial institutions of the dominion for accommodation, and although adopting a restrictive policy for some time past, they had responded reasonably to tho

call. The present policy was to main-

tarn themselves in a position to moot the legitimate requirements of their established connections, and the dominions industries and trade. The Realisation Board’s assets had been further reduced to £136,356, as against £216,354 in 1911.

Dealing with general matters, the chairman said the reserve fund, which in 1906 stood at £81,294, to-day. after tho proposed trasfer of £20,000, would stand at £1,200,000. This accumulation had been made practically in tho last six years as a consequence of their adherence to a cautions policy. Tho bank’s losses had been exceedingly

light during tho past year. Six now branches and seven now agencies had been opened. In view of the increased cost of living and the good services by tho staff, the hoard granted a bonus of 5 per cent on their salaries. Ho concluded by commenting upon the present gratifying state of the markets for the staple products of the dominion ; wool, frozen meat, dairy produce all commanding satisfactory prices.

Mr. W. Watson seconded tire motion for tho adoption of tiro report. In a speech endorsing the views of the chairman ho said he would stand for election to tho directorate again in December.

Mr. John Mill congratulated Mr. Martin Kennedy upon his election as chairman, and tho good report- qf the year’s working. Ho also approved of tho Hoard’s treatment of the staff. Ho said living had gone up, and the officers had to wear their Sunday clothes every day in the week. The motion for tho adoption of Hie report and balance sheet was carried

unanimously. Votes of thanks wore passed to the directors and staff. hi reply to shareholders regarding the Bank’s obligation to the Govern-

ment, Mr. Kennedy said that many shareholders were under the impression that tho guarantee was money ow-

ing to tlio Government. It was nothin;; of the sort. It was money due in London on guaranteed stock, and redemption would not put any more

money in the coffers of the Gcwernment. Still the question of a renewal, giir.rauteo, or paying it off, had to be dealt with. If it were paid off it woidd limit the Bank’s power of lend-

ing.