BANK OF AFRICA.

Auckland Star, Volume XXXIX, Issue 283, 26 November 1908, Page 3

BANK OF AFRICA.

POSSIBLE REDUCTION DS

SALARIES. LORD ST. ALDWYN OX THE OUTLOOK. (By Mail.) CAPETOWN, October 28. Lord St. Aldwyn presided over the ordinary meeting of tue Bank of Africa on September 30, and moved the adoption of the report. He said the general condition ox .-South Africa during the six months ended June 30 last did not show -any material change as compared with ihe previous half-year. The stagnation of trade had continued, and real property in the principal centres of population had almost been unsaleable. These causes had had a grave effect upon the profits of the bank. The expenses in the half-year ending last December showed a diminution of £5000, owing to the efforts of the directors: during the months under review the expenditure exhibited a further reduction of £7^pl.

The directors had felt themselves obliged, with very great reluctance, to give notice to members of the staff that they must be prepared, unless there was a very much greater improvement in South African affairs than could now be anticipated, for some reduction in their salaries from January 1 next. Generally speaking, institutions and companies of aJ] kinds in South Africa had been compelled to take steps of this kind. The directors, in face of the difficulties prevailing, had thought it right to pursue a very conservative policy. Prudence dictated that the shareholders should be content with a 5 per cent dividend on this occasion; and he did not think that the present position of South Africa looked as if the profits during the current half-year -\vpre likely to be better than those of the past six months.

While not liking to prophesy witli regard to the future, he thought he might venture to say that there were very good hopes, not merely that the dividend would not be less than 5 per cent., but that in future years they would be in a better position. In conclusion, he referred to the growing confidence in gold mining sharps in South Africa, which would have its effect on the trade of the country, the improvement in the conditions of thp farming industry, and also the gradual improvement in Rhodesian affairs.

Mr H. B. Rim seconded the motion, and it was carried.