The Half-Yearly Report.

The Chairman called on the Manager to real the balance-sheet and report for the past six months.

Mr Beal read the report and balance-sheet, which will be found over our leading column.

The Chairman had only to regret to day that the hom gentleman, who was President of the Bank, was not present in the place occupied by him (the Chairman), to give them the satisfactory intelligence that the Bank was progressing in every way that they could desire—in fact, beyond their anticipations. He had only to call their attention to this balance sheet and the former one to show them the progress the Bank was making. On the 31st December, after the Bank had been in operation three months, the total note circulation was L8560. Now the amount of notes in circulation was L31,862. The deposits on the 31st December were L52,619 15s 9d. Ou the 30th June they were L182,707 17s 10d. Of that amount L125,000 was bearing no interest, and there was only an amount of about L59,000 on which the Bank was paying interest. The accounts to the 31st December numbered 400; now they reached nearly 1600. He thought that was sufficient evidence to show them how substantially the Bank was progressing throughout the Colony. Apart from Dunedin, at each locality where the Bank had been established it had met with the greatest encouragement, and it no doubt would grow with the future prosperity of the Colony—and it was sure to grow with it—and be a great success. In fact, it would require only ordinary careful management to ensure it to be what the promoters originally promised—a substantial and useful institution in the Colony. The number of shares taken up originally was over 169,000, upon which calls of 30s had been paid, which amounted to L254,000. He might tell them that out of that large sum there was only about L14,000 of unpaid calls at the present date, and that amount was being reduced every day. No doubt if the Directors had pressed every shilling would have been paid, but it was not considered prudent, and they had had no difficulties where people had been requested seriously to pay their calls; so at the present period there was only an amount of about L14,000 or L15,000 unpaid calls. The balance-sheet showed them that they had 10 establishments, including the sub-branch at Green Island, and they were all promising to do satisfactorily. It was contemplated, in the course of a few days, that there should be two more branches of the Bank in operation. Arrangements had been made to open a branch at Oamaru, in the north of the Province, and one at Outram and Mosgiel in the West Taieri; and in these localities, from the number of local shareholders, he thought they would have every support and do prosperously. Oamaru is a most thriving district, and from having secured a gentleman well known in that district to take the management there, there was no doubt that under his management the Bank would get a large amount of business—at any rate, would get its share. They were also aware that the Directors found it necessary to take steps to open a branch in London. The business of the Bank was increasing so fast in Dunedin, and the accounts were becoming of so important a nature, that it was found absolutely indispensable to have a Loudon branch, to do justice to customers in Dunedin—importers and others who had to pass bills through their Banks, and no time had been lost in the way of opening a branch in Loudon. The Directois made arrangements with Mr Morris, and he was now on his way to commence operations. Mr Morris was also authorised to place shares on the market in London, and he (the Chairman) had no doubt that, with the name that the Bank had achieved for itself, there would be no difficulty in selling the shares in London to useful shareholders. It was anticipated that Mr Morris would open the branch by the end of the year, and the Bank would then take over accounts which it was at present not desirable to take, from not being able to give those facilities which it could not afford until the London office was in operation. So that, by the end of the present year, it was anticipated that the business would be increased by a very paying addition—that of exchanges, which was carried on so considerably in London. It was anticipated that their branch opening in London would enable them to acquire an extra capital, of perhaps a quarter of a million, by the amount of shares which they would be able to float there, and also through the aid of one of their large accounts (the Harbour Board), whose debentures they were entrusted with to the amount of £100,000, and they had already evidence that these debentures would be taken up. By thai step alone the Bank would have an increased capital, without taking into account increase of deposits of nearly a quarter of a million; and notwithstanding the growth they had already made, they anticipated like compound interest to be growing larger in a short time. Every step they took save them additional strength to take farther and larger strides. They would notice in the balance, and perhaps it occurred to many of them, that the preliminary expenses of the Bank were large. It had been thought prudent to give them in detail, and they now appeared in this state. When they took the amounts for advertising and the commission on the sale of shares—items which the Directors had no control over, and were compelled to submit to in order to force the Bank into a position—and take the balance, the meeting would not consider them unreasonable. He might tell them that since the 30th of June no less than 66 new accounts have been opened with the Bank, and that in four weeks. In fact, the only thing now keeping the Bank from doubling its strength, and which was in the way of its progress, was the want of more capital, and capital could only be acquired by time. The promoters made the promise to the shareholders that the calls would only be made by certain dates. The Directors were aware of this; and while they would have studied the shareholders' interests to make calls now, they would not do so, as it would be a breach of faith, and calls would only be made in terms of the prospectus. However, another call could be due in about three months, which would give an addition to the capital of about L50,000; and when this sum and the L100,000 he had already referred to came in, the business of the Bank could be considerably extended. And it was not only the business that the Bank had already, but promises had been made to it of the best accounts in their midst, apart from those in other localities. It might be well for him to point out to them that both on the 30th of December and on the 30th of June the Bank was very strong in coin. Now, it might be supposed that the Bank might have made more if it had not not kept so high a reserve; but it was deemed prudent—considering it was a new institution, and might meet opposition—to have a strong reserve and not invest too much. That was the reason why the Manager and the Directors considered it advisable to work slowly but surely. If they calculated the difference between the dates of the 31st December and the 30th June, with the comparatively small amount of money that the Bank had at the former date to use and to invest, and compare it with what the Bank had at the present time, it would give them, even at seven per cent., the difference between £8000 and £25,000 per annum, so the enormous strides the Bank had taken showed clearly that at the next half-year they might fairly anticipate a dividend. He thought the meeting would quite agree with the Directors that at the present time it was prudent to reserve the profits accrued Although the profit seemed small, the Bank had done a careful business, and was not anxious to push it at first. The profit had been small, but he thought on the whole they would reasonably consider it was a fair profit. The only bad debt was a very small amount. It amounted to L250, and he thought this fact reflected credit on the Manager, and the shareholders would have no cause to find blame on that score. He did not know there was anything else he had to say to them. Really things were going on so satisfactorily that it was only taking up time to keep the meeting to further explain. He might mention that a vacancy occurred at the Board by Mr Morris going home, and the Directors, as they had power to do by the deed of settlement, had invited Mr Strode, who had had previous experience in that way, to a seat. Mr Strode would be before the meeting for re-election, and was the only candidate. It might be interesting to them to know that the Bank had sent home for note forms. The first note forms were printed in Dunedin. The first instalment had arrived from home, and they would be issued as soon as a proper supply arrived. They did credit to the Bank-they were a very nice note—and he hoped all those present would be able to obtain lots of them. He begged to move the adoption of the report, and should be glad to answer any questions.

In answer to Mr. Walter, it appeared that the interest chargeable on overdue calls was 10 per cent.

Mr Reid, of Merton, seconded the motion.

The report was unanimously adopted.