THE BANK OF AUSTRALASIA.

Wairarapa Daily Times, Volume 2, Issue 294, 20 October 1879, Page 2

THE BANK OF AUSTRALASIA.

The half-yearly meeting of shareholders was held at the offices, No. 4, Thread-needle-street, London, on Monday, Aug. 10; Mr Martin R. Smith in the chair,

The notice calling the meeting was read by Mr Prideaux Selby, the secretary. The report of the directors, which was taken as read, was as follows

"The directors have the pleasure of informing the proprietors that, since their annual report in March last, the business of the bank has progressed to their satisfaction. Continued caution has however been necessary, and the prudence and foresight of the superintendent enables the directors to congratulate the proprietors on the fact that, up to present advices, the transactions of the bank are free from losses of any importance, The directors are also glad to be able to report that rain had fallen generally throughout the colonies, and hopes are entertained that the season will be favorable for pastoral pursuits, Mr Badcock having accepted the management of another institution, the directors regret to have to announce his resignation of the office of secretary of the bank in London. They have in his stead appointed Mr Prideaux Selby, one of the Colonial Inspectors. Mr Selby has an intimate knowledge of the bank's affairs; he possesses the entire confidence both of the directors and of the superintendent, and is well qualified for the position. The distribution of profit will be at the rate of 12| per cent, per annum,_ or £2los per share, and the dividend will be declared at the usual time, and be payable free of income-tax in London and the Colonies on the 7th of October next."

The Chairman said he should detain them but very few minutes on the present occasion, inasmuch as this was only a half-yearly meeting, and was not considered of so much importance as the annual general meeting, at which the directors gave a balance-sheet, and rendered a much more full account of their stewardship. But at the same time he considered these half-yearly meetings ol great importance, inasmuch as they enabled the board to report progress, to afford information, and sometimes to correct misunderstand ings._ For his own part he valued these meetings very much, as bringing the directors face to face with the shareholders, and enabling them to give information in reply to questions. No doubt the principal point on which they were anxious for information at the present moment was the general condition and progress of the bank. As the shareholders were aware, the last accounts were made up to October, and he was happy to tell them that he was fully able to confirm the statement made in the report—namely, that up to the date of the latest intelligence the business was progressing satisfactorily. Since the last meeting they had passed through a period of anxiety and difficulty, but during that period they had made no bad debts of any importance and no loss which could in any way affect the dividend which they were now in progress of earning. This was a satisfacfactory statement, for no business could be conducted in this country, and certainly not in the colony, without occasional heavy losses. The business of this bank in Australia was especially subject to such disasters, as it was so widely spread, and the multitude of branches required a corresponding nnmber of wise and sagacious men to manage them, and it reflected the highest credit upon those gentlemen, collectively and individually, when the general manager could report, (as he was able to do) that no blot of any importance had been discovered in the branches since the date of the last account. (Cheers,) Mark Twain had observed that" No one but a fool prophecies unless he knows," and certainly at a distance of 15,000 miles from the scene of the bank's operations, and three • months to run before the date at which the books were closed, he certainly should not pretend to prophecy; but he did not see why he should not give his own private view on the subject of the next dividend; and therefore he would say he believed that, barring unforeseen accidents, at the next annual meeting the directors would be able to make the shareholders as good a return as on the last occasion. (Cheers.) He could not, however, give them an altogether favorable report of the general progress and prosperity of the colonies. They all read the newspapers, and no doubt had formed a pretty accurate opinion of what was going on there, and therefore lie would not detain them with any statistics regarding prices, or of imports and exports. As regarded the prospects of the pastoral and mining interests they were very chequered : insome places they were very good, in others indifferent, and in some few bad, and undoubtedly this must affect a bank; but at the same

time, if a bank were wisely managed, a partial depression of trade need not severely affect the result. (Hear, hear.) If a bank be improvidently and carelessly £ managed, the result must necessarily be disastrous; but a well-managed bank did not necessarily suffer from any partial depression of trade; on the contrary, it was very possible that it might prosper by the very circumstances which led to the ruin of weak banks. A tight money market, with inevitable failures and heavy losses, meant to a strongly managed bank a time of dangor no doubt, and fiomo i*creased risk of loss, but it also meant Ift employment for its funds at its own ratJfW and on securities selected by itself. It also means a lessening of competition, and a weeding out of worthless accounts, and above all, it meant the acquisition of much good business which weaker or less wellmanaged banks could not retain. There fore, unless the disasters were very wide spread, a like this need not eipect influenced. (CheeraHffiSraQ&ers would observe from MgHpfthat tney had lost the services onSfflS late secretary, Mr Badcock, who had accepted a post of great importance in another banking institution, He could not blamo Mr Badcock for the step he had taken, however much the directors might regret that gentleman's loss, for Mr Badcock had received a very brilliant offer, in excess of what he could ever have expected to receive from this bank, and which also gave him a far larger amount of independence, •, and much less severe and continuous labor. Mr Badcock had served the bank with untiring zeal and much ability, and had given groat impetus to certain branches of the business, and altogether, during the time he was in their service, Mr Badcock had worked for the bank loyally and most faithfully. Whilst regretting the loss of Mr Badcock, the directors were pleased to report that they had been worthily able to fill his place by the appointment of Mr Selby, who had been in the service of the bank in the colonies for twenty-one years, during which time ho had served in every grade, and for some time past had filled the important post of inspector of branches in Australia; and it was scarcely necessary to point out that there was hardly any position throughout the whole bank in which a gentleman had an opportunity of seeing so thoroughly the position of the different accounts and all the details of the business. (Hear, _ • . hear.) He might mention that Mr Selby * came with the warmest recommendation of the superintendent, who confirmed the directors in the opinion that in Mr Selby they had one of their most efficient officers. (Hear hear.) In conclusion, the Chairman moved the adoption of the report.

Mr Alderman Mac Arthur, M.P., seconded the resolution, Mr Minton congratulated the directors on the satisfactory report they were able to present, He thought the directors had acted wisely in appointing as secretary a gentleman possessing so much colonial banking knowledge as Mr Selby. A shareholder asked whether the chairman could give them any information about the charter 1 The Chairman said 110 doubt the shareholder, in asking the question, had in his mind the short bill recently brought Parliament respecting the chartefrof Australian banks. He had every reason for believing that that bill had been withdrawn, and that wa3 the reason why he had not made any reference to it. Referring to the fluctuations which had recently taken place in the shares, he said that no doubt the slight depression in the price of the shares had been caused by a considerable number of shares from deceased proprietors having come on the market, After a few remarks from Sergeant Caselee, who also expressed his satisfmion ' with the report, the resolution for the adoption of the report and accounts was | put and carried. I

On the motion of Mr Minton, seconded by Mr Johnson, a vote of thanks was passed to the chairman and directors, and the meeting broke up.