BANK OF AUSTRALASIA.

Press, Volume LXV, Issue 19611, 6 May 1929, Page 12

BANK OF AUSTRALASIA.

ELEVEN YEARS' PROGRESS.

The 06th annual general meeting of the above bank was held in London on March 21st, Mr T. R. Johnson presiding. The total figures in the balance-sheet showed an increase of £3,024,000, of which the increase in the capital and reserve fund accounted for £1,100,000. Specie, bullion, Government notes, ca&h balances, and loans at call showed an increase of £740.578, and at balance date were 19 per cent, of liabilities to the public. Their position in Australia in this respect still compared very favourably with that of any of the other banks. *

The gross profit was greater by £76.157, but as charges of management are up by £15,320 —largely due to the opening"of new branches, and increased salaries due to Arbitration awards—and rates and taxes both in the Dominions and London were up by £39,700, the increase in net profit was brought down to £21,133. This result was not unsatisfactory when it is remembered that parts of Australia were affected by severe drought conditions during the year. The chairman compared briefly the position in October, 1917, with October, I 19158—it was eleven years since he had presided at the general meeting of the bank. The capital was £2.000.000, as compared with £4,500,000. The seserve fund was £2.905,000. compared with £4,450,000, and this did not tell the whole story, for in 1920, £1,000,000 of the reserve fund was capitalised. Deposits in 1917 were £20,891,000. In October last they had reached £33.876,000. On the assets side, British Government securities were £1,142,884, as compared iwith £3,641,294. and other investments have also increased. Advances on securities and other assets were £20,219,000, including bills receivable, whereas, in October last, they had reached £31,564.000, without bills receivable, which alone stood at £3.300,000. On the capital, increased to £4,500.000. the shareholders would receive the final half-yearly dividend at the rate of 14 per cent, per annum. Over and above the subscribed capital on which the dividend was declared, there was a large amount of other capital in the form of reserves, set aside from time to time, employed in the business of the bank, and, taking this into account, it was quite evident that they were not making more than a fair trading profit. Directors were re-elected as follows: —Lord Aldenham, Mr Kenneth Goschen, and Mr Horace Peel. The chairman referred to his visit to Australia and New Zealand in 1927, on other business, but he availed himself of the bpportunity of visiting all the branches in the Commonwealth cities, and in Wellington and Auckland, and he could testify, therefore, from personal observation, to the good work the Dominion officers were doing. DRAPERS AND FINANCE

REVIEW OF TRADE. OPTIMISM WITH CAUTION. Attention of business men is directed by the New Zealand Drapers' Federation organ to the advertising columns of the daily papers of the Dominion, because they are of intense interest to business men. In them can be seen "a march of events which should result in the improved position about which so much has been said." Reference is made to mortgagee tales, as denoting that many people are unable to meet obligations contracted while prices were high and the mortgagor is foreclosing. "How long this process will take cannot be estimated, but it should not be long before we reach a reasonable value all round, particularly in urban properties. People have had their lesson and most are too anxious to get out to insist upon fancy prices. "Another section of the advertising columns to which attention is drawn is that relating to loans, including that for hydro-electric and general municipal work. The total runs into millons and a great deal is being raised for the reorganisation of businesses or for 'floating into companies private enterprises which have a future to offer. A readjustment of finance is taking filace, and although this may result in oas to the over-o"timistic, yet caution has been so well impressed upon the people during the last three years that we feel sure every enterprise Will be more closely scrutinised than at any other period of our industry, so that there is very little to fear from this natual expansion."

Money in the Banks. It is pointed out that the banks have on fixed deposit about £30,000,000, earning a comparatively low rate of interest. "Its owners are satisfied that this should be so until they have investigated securities or enterprises which will show them a better return. There have been complaints that this money does not go out, and probably from a patriotic point of view it should be in circulation, but after all it is private money, and if the owner does not desire to use it otherwisej we see neither moral nor legal obligation upon his doing so. . . . "It seems certain that by a roundabout process this money will go into circulation at ari accelerated rate, and far from being disquieting, it would seem that the situation is full of hope. There is nothing to argue for undue optimism, but the country is prosperous or would not have this large amount of money tied up. and with returning confidence those who have it will spend it . . The sooner that we get back into our old routine the better, provided that our optimism is tinged with a continued measure of caution."

IMPORTED FRUITS.

REQUEST FOR INCREASED DUTY

The Canterbury Fruitgrowers' Association, at its meeting last month, decided to communicate with the Minister for Customs, in the matter of increasing the duty on imported fruits. At Satcrday night's meeting the reply of the Hon. Mr Taverner was read as follows:

"I have to acknowledge yours of April Bth, in reference to your desire for me to meet a deputation from your Association, when I am in Christehurch, in connexion with the question of increased duty on imported fruits. In reply, I have to inform you that I shall be pleased to make a note of the request, and if arrangements can be made I will let you know. In the meantime, however, the representations of the petitioners will have consideration.

"I may say that during my recent visit to Central Otago, the Otago Central Fruitgrowers' Association approached me on the same matter.'' Mr F. W. Cone said that he had got Mr R W. Hawke, MJ?., interested in the matter and Mr Hawke was also bringing it before the Minister. The letter was received. LINSEED. The Department of Apiculture has received the following cablegram, dated 2nd instant, from Landale and Clark, Ltd., Calcutta, with reference to the Unseed market: "We quote £l6 10s for linseed per ton not c. and fe Sydney, for immediate t&ipaaat. Market stead/."