RECORD DEPOSITS

Evening Post, Volume CV, Issue 106, 7 May 1928, Page 12

RECORD DEPOSITS

BANK OF AUSTRALASIA (From "The Post's" Representative.) LONDON, 3rd April. Air. John Sanderson presided at the annual meeting of tho Bank of Australasia. In his address to the shareholders I he chairman ».id that the figures in the bal-ance-sheet showed, compared with the previous year, that among the assels there Avas a reduction in British Government securities roughly equivalent to tho increase of Government securities of Australia, and that bills receivable and remittances wore slightly increased; but, of course, these Avcre constantly iluctuating. The main alteration Avas an increase of nearly two millions in advances, following upon a previous increase of over two millions. Deposits'had increased by over two millions, and there had been a further considerable increase since the date of the balance-sheet, the amount of deposits up to date constituting a record. There was much satisfaction in the knowledge that a very large portion of these deposits ivas held in small sums, and that during the past year the number of fixed depositors had increased by nearly 1200. An important event during the past year had. been the conclusion of a financial agreement, to which the Governments of the Gommonivealth and of all the States had subscribed, for submission to their respective Parliaments. The Commonwealth House of Representatives and four of the State Parliaments had ratified the Bill, under which all Government loans were to be negotiated through a loan council, and in this way control would be established over the rather confusing multiplicity of issues iv the past. Some concern had been expressed in various quarters about Australian loans, but considerable reductions in expenditure had been announced, and were being enforced by the CommonAvcalth and various State Governments. The adequate development of such a vast continent as Australia must always require expenditure of capital, but so long as it was reproductive expenditure, Aviscly administered, and accompanied by sufficient increase of production iv the country districts, one need not be 100 greatly concerned about the result; it must be borne in mind, however, that the cost of production in primary industries Avas a very important consideration. A DISTURBING FEATURE. A disturbing feature of Government finance ill Australia had been the proclamation of a moratorium by the Government of Victoria over portions of that Stale. The alleged cause of this Act was that, owing to the drought prevailing in certain districts, the land settlers, many of them returned soldiers, had been placed in such a position as to be unable to meet thenliabilities. It Avould appear that inadequate consideration had been given to the restriction of credit Avhich followed upon such precipitate—however well-intentioned —legislation, and, in the interests of debtors and creditors alike, it was to be hoped that steps would be taken to minimise the effects of the Act. In the New Zealand Budget for the year ended 31st March, there was a surplus of £587,----142; the total imports were valued at £44,782,926, and the exports at £48,496,354. The increased value of crossbred avool, combined with the variety of other exports, should result in considerable benefit to tiiis Dominion. The report and ac■counts were passed, and the following directors were re-elected:—Mr. Frederick V. C. Livingstone-Learmonth, D.5.0., Mr. Harold Nelson, and Air. Charles E. Barnett.