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15

Mr. Macarthy was asked for this information when before the Committee by the Hon. the Premier. Bank of New Zealand, Head Office, Wellington, 23rd August, 1895. Sib,— I have now the honour to furnish the following information required by the Committee : — 1. Number and classification of deposits in the Bank of New Zealand: See memorandum attached marked "A." 2. Number and classification of advances: See memorandum attached marked "B." (Will follow this evening.) 3. Number and domicile of shareholders and number of shares held. New Zealand 1,050 59,067 Australia 425 26,831 United Kingdom* 1,419 63,189 Non-resident ... ... ... ... ... 11 913 Total number of shareholders ... ... 2,905 150,000 4. Profit and loss statement herewith. 5. Number of persons employed by the Bank of New Zealand and the Estates Company in New Zealand — Bank (including President and Auditor) ... ... ... ... 421 Estates Company ... ... ... ■•• ■•• ■•• 858 1,279 I have, &c, The Hon. C. C. Bowen, W. Watson, President. Chairman Joint Committee, Houses of Parliament.

Bank of New Zealand, Wellington, Sib,— 23rd August, 1895. I have the honour to hand you herewith statement of the Bank's profit and loss account for the year ended 31st March last. In connection therewith I would point out that the profits last year were exceptionally low for the following reasons : — 1. Owing to the crippled state of the Bank's finances prior to the transfer of the Head Office from London and the consequent necessity of calling in advances, the business had been run down to a very low point. 2. The floating of the £2,000,000 of guaranteed capital in July, 1894, filled the Bank's coffers with money, for much of which either no employment whatever could be found, or only nominal rates obtained, as it had to be kept against debentures falling due, and lent at about f per cent, per annum, whereas we paid 5-J- per cent, on these debentures. 3. The Bank was paying the high rate of 5 per cent, on most of its deposits. The bulk of the money at this rate has now run off. 4. The heavy expenses of removing the Head Offices from London and Auckland to Wellington had to be met during the year. 5. On a number of accounts on which interest had previously been charged the new management decided it was inexpedient for the present to charge interest. This further reduced the Bank's earnings. 6. London exchanges during the year were adverse, chiefly caused by the Australian Banking troubles. I am, &c, The Hon. C. G. Bowen, M.L.C., Chairman C. G. Andeews, Banking Committee. Acting General Manager.

Appboximate Estimate op Additional Eabning-poweb of Bank undeb Amended Pboposals submitted. & Value of Inscription business, London, per annum ... . . ... 14,000 £1,000,000 A Stock now earning 3 per cent, if invested in general business of bank calculated to earn 4J- per cent. ... ... ... 15,000 Net profits of another bank £45,000, say ... ... ... ... 30,000 3 J per cent, on £1,850,000 now earning nothing ... ... ... 64,750 Saving in administration ... ... ... ... ... 15,000 £138,750 There will be a further addition earned on the amount paid up from the shareholders, which will increase as the calls are paid. In addition to this, there will be a saving to the Estates Company of If per cent, per annum on £1,500,000. W. Watson, President. * The larger proportion of the shareholders beyond New Zealand were formerly residents and maintain interests in the colony.