BANKING PROFITS.

Press, Volume LXV, Issue 19508, 3 January 1929, Page 10

BANKING PROFITS.

GENERALLY ONLY MAINTAINED. ' "Money market comfortable, trade dull,'' is the summary of existing conditions in Australia. The effects of the poor harvest for 1927-28 and the patchy season in most of the eastern Stales are the immediate causes of such a situation. High costs and labour unrest have also affected industry adversely, and some restraint has been imposed upon Departmental x expenditure. The accounts for the year of many joint stock, financial, and industrial companies reveal that profits in general have either only been maintained or that, despite _ a larger turnover, a moderate shrinkage in net earnings has occurred. Several important liquidations have also afiWtpd groups of enterprises, particularly in the softgoods section. In the circumstances it is "not surprising to find that with the smalier J "hS-i J vest and with imports reduced I'bankers' profits for 1927-28 showed tittle; expansion. A return compiled "Australasian Insurance and Bankirra. Record" for Australia and New Zealand for tiie year ended September 30th gives the following comparison:— 1926 1927. 1928. £ £ £ Capital paid .. 40,145,549 41,721,118 43,800,036 Capital paid reserves and undivided profits 71,904,307 74,370,010 78,555,780 Dividends .. 4,740,664 4,864,179 5,213,456 Average Kate — Percent. Percent. Percent. (1) On capital 11.80 11.66 11.67 (-2) On capital reserves and undi Tided profits .. 6.50 6.43 6.63 From the foregoing table it will be seen, states a Melbourne paper, that when the full volume of funds employed by bankers is taken into account, the return is not large. In the circumstances it is not to be wondered at that bankers generally should have accepted with reluctance the arrangement of allowing foreign banks to establish open accounts in Australia with them. That privilege was denied for years, and was granted largely through the instrumentality of the Commonwealth Bank, although it might affect the exchange position adversely to Australian banks. Sufficient time has not elapsed to disclose the full effect of the innovation. It is not improbable, however, that restrictions imposed on the open accounts of foreign banks will prevent exchange business being interfered with to an appreciable extent. DEFROSTING BEEF. SUCCESSFUL EXPERIMENT. Directors of the Anglo-Australian defreezing Co., Ltd., are gratified at reports of the demonstration in London with the consignment of beef sent there to test the company's patent "in that market. The company had to obtain a supply of meat for the trial, o arrange refrigerating space on the steamer, and to provide suitable space for demonstrations in London. Arrangements were made with the Gladstone Meat Works of Queensland to supply the consignment of beef. The management of tne Commonwealth and Dominion line of vessels allotted a fecial chamber to the company in the turbine steamer Port Caroline to carry the beef, the temperature to be from 14 to lo deg. Fanr. As the Smithfield dealers took much interest in the demonstratidns, they gave the company space in the Smithfield market, so that the test has been carried out under the observation of meat importers and representatives of exporters. Advices received by the directors are that not only has the demonstration proceeded satisfactorily, but that Smdthfield tradesmen expressed satisfaction at the condition of the meat and bought it at enhanced prices. The company has now closed with an offer made by the proprietor of Palmer's Cold Air Stores, Deptford, London, to erect a plant at their expense. This firm will treat considerable quantities of beef under license from the Anglo-Australian company. Directors consider that this offer represents a very satisfactory commencement of London business. The experiment of the company is being followed closely by exporters in Australia because of the importance of any effort to widen the market for Australian meat abroad. The point to be settled is the testing of the market with full consignments. NEW ZEALAND BUTTER LIVERPOOL CAMPAIGN. (raoat ovb, own cobbesponpskt.) LONDON, November 22. This week the campaign in favour of New Zealand butter was begun at Liverpool., Ail the local newspapers have something to say regarding the Dominion produce and the show arranged by the Dairy Produce Board. "Despite the somewhat* pessimistic views of the Liverpool Chamber of Commerce on the question of direct shipment between this port and New Zealand," says the Liverpool "Echo," "the Government of that country has not given us up for lost, and on Monday next the Liverpool public will have an opportunity of seeing and sampling New Zealand butter and cheese at an exhibition arranged by the New Zealand Dairy Produce Board. "The exhibition is really a follow-on upon the Liverpool visit of Sir James Parr, the New Zealand High Commissioner, when he appealed for more support for the products of his country, and Liverpool consumers are now to be given an opportunity of testing the quality of the butter and cheese products, and also to view, by means of illustration and literature, the up-to-date and hygienic methods of manufacture now operating at the New Zealand dairies. Direct shipments of dairy produce have been arriving at Liverpool from Wellington, New Zealand, for some time now, and the innovation has the enthusiastic support of the local produce trade and the Mersey Docks and Harbour Board. "Unfortunately, the Liverpool housewife has not fallen into line so readily, and, with the object of educating her to the high quality of the New Zealand product, twopenny samples of butter will be on sale at the exhibition, and arrangements have been made with all the local retail grocers to stock quantities of the produce, in order to meet the increasing demand which it _is felt will be the certain outcome of the miniature *Wembbley' in Church street." Opening Ceremony. The Lord Mayor of Liverpool (Alderman H. M. Miller) opened the exhibition on Monday. At present only one provision shop in six sells New Zealand and the Lord Mayor's comment was that this state of affairs was neither creditable nor patriotic. "When Sir James Parr, the New Zealand High Commissioner, was here. recently, he said Liverpool was splendidly suited for supplying 20,000,000 people in the Midlands, but I don't think the overseas people quite appreciate the advantages that would be gained by making more use of Liverpool as a distributing centre. We have the accommodation. Nor do I think the citizens realise what they are doing when they give foreign goods preference over the goou* of our own kith and kin. _lf they would only insist on procuring Dominion goods it would not be long before a direct shipping line between here and New Zealand would prove a paying proposition."

METALS.

LONDON, January »I. Jan. 1. Dec. 27. (per ton). (per ton). Copper— £ b. d. £ a. d. Standard, spot .. 74 12 G 71 o 7| Standard, forward 73 6 3 70 3 1§ Electrolytic .. 77 0 0 76 0 0 to ... .. ■ 77 10 . 0 76 5 0 Wire bars ... 77 JO 0 76 S 0 Lead— Spot .. 22 0 0 21 G 0 Forward ... ... 22 6 3 21 11 3 Spfcltei— Spot .. .. 26 17 6 26 15 0 Forward .. .. 26 15 0 26 11 3 TinSpot .. 225 17 6 266 7 6 Forward .. .. 235 12 6 - 225 12 6 Silver — Standard, oz ..26 3-6 d 26 5-16 d Fine, at .. 28|d 2S 9-isd —Australian Press Association.