Page 18 Advertisements Column 2

New Zealand Tablet, Volume XV, Issue 2, 6 May 1887, Page 18

policy which, when I last addressed yon, I reported had been adopted preferring in these times to maintain strong reserves rather than seek tnller employment for our resources. You will consequently observe a marked strengthening in varions items in the balance sheet, representing the immediately available resources of the Bank— a result obtained partly by contraction of advances, and partly by an increase of deposits. We are, therefore, in the best position to take advantage of the first opportunity which offers to augment business, and from present indications it may reasonably be hoped the opportunity will not be long delayed. The accounts received from branches generally favour the idea of an early return to more active operations, and that the cloud which has so long overshadowed business is gradually dispersing. Bucn a period of unexampled depression, however, cannot be expected to have passed without leaving a very distinct track behind it, and it is. therefore, a matter for congratulation that in past more successful years we have been enabled to build up a reserve fund which, accordine to the provisions of our deed of settlement, is specially meant to provide for occasional losses. This provision under the original deed of settlement was confined to 20 per cent, of the capital, which, on the present capital of the Bank would represent £200,000, and miebt be reduced to 10 per cent., or £100,000. The maximum amount was subsequently altered to £300,000, beyond which no addition was to be made to it, and later still all restriction as to amount was removed except that it shall not be reduced below three-tenths of the paid-uD capital, without appropriating ten per cent, of the net profits to brine the reserve fund up to £200,000. Past success, as you are aware has enabled us to bring this fund up to £625,000, and for the first time we are now obliged to intimate that an appropriation has been made to meet the exceptional losses which adverse times have entailed upon us, and to which I specially alluded in my address last half-year We had not then fully realised the extent of such losses, but the almost utter collapse of business in Adelaide, and failures which have occurred in our own Colony, have been unfavourable to the realisation of debts which we were then hopeful might prove good and has aggravated the loss which it was then anticipated might be inflicted on the Bank. The directors have, therefore, under the authority conferred on them by the deed of settlement, decided to t » ra ? Bf ™ from reßerve fond to bad and doubtful debt suspense account f inffi' - Which Will BtiU leave that fand at half • °>iltiou, or £200,000 in excess of what is required by the deed of settlement; and considering the ease with which the reserve has been ace umulated m the past we may look on a return to more prosperous times to have the opportunity of again making additions to it. World-wide as the depression has been, it could not be expected that any financial institution could pass through such times without loss, but we have at least, the negative consolation that reverses are not confined to this bank ; on the contrary we may express a conviction that we have fared at least no worse than most of our neighbours. I feel sure that shareholders will heartily endorse the policy the board has adopted, and that the result of the half-year will not be considered unsatisfactory, as the report shows we are fully justified in paying you *», ?? i/i /n i ? c , I ; d £ } 2 $ per cent ' leavin S the respectable balance of *, 14,594 lls dd to be carried forward to next account. With these remarks I beg to move the adoption of the report and balance sheet. The Hon. Jambs Williamson, in seconding the motion, said : It will be unnecessary for me to make any remarks after the very full explanation that our chairman has just given you. I may say however, that there is, perhaps, no shareholder connected with the Bank that regrets more than I do the necessity that has been forced upon us of interfering in any way with the reserve fund ; for this is one of the things in the management of the Bank that I have always strongly supported, and endeavoured to build up to its highest possible amount. I beg to second the adoption of the report and balance sheet. The report and balance sheet were carried, together with the usual vote of thanks to directors and officers . f the bank. (100 PRINCES ST., 1 ft - |97 GEORGE ST., J 1 Dunedin. I *l y \ Dunedin. } WILKINSON & KEDDIE'S GREAT BANKRUPT SALE OP ROSS & M'NEILL'S STOCK Will be continued for One Month only 1 SPECIAL BARGAINB in CORBETT'S BEST CHEESE PRESSES (Single and Double), CHEESE STOOLS. CHAFF-CUTTERS, TURNIP SLICERS AND PULPERB, RANGES, STOVES, AND ELECTRO- PLATE. This is your opportunity, as all the Goods MU6T BE CLEAKED by Ist June. WILKINSON <5c KEDDIE, Ironmongers. 100 Princes Street (Opposite Bank of New Zealand), i and 97 George Street, Dunedin.