BANKS AND THE PUBLIC.

Press, Volume LXVI, Issue 19986, 22 July 1930, Page 13

BANKS AND THE PUBLIC.

TO THE KDITOB OF THE PRKSS, Sir,—As a constant reader of your, journal, T desire to state that while T am not exactly enamoured with its politics, I do appreciate the clearness and straightforwardness of its editorials. Therefore, believing that a straight out opponent is preferable to a false friend, I respect it accordingly. I am not writing though, for-the purpose of paying compliments, but- to ask whether you would .be kind enough to give some information. In to-da.v's issue thpre. U a report pf an. interyiew with an' English visitor, who, in, the oQurise .of Ijis re&arks, states: '^Things in Australia- are ■ terribly bad • ; . . the hanks are isqueeaing .everyone ds "ean.^~'--'r--If that statement can be'taken at

its face value, it makes one wonder to what extent this squeezing by the banks affects the position in relation to unemployment, etc. I have a notion that Australia is not the only country where the banks are "squeezing everybody as hard as they can," and firmly believe that the shareholders in the banking institutions of New Zealand are vec* fortunate individuals. When perusing the bank's annual reports and noting the percentages paid in dividends year aiter year, and the amounts added to reserves, etc., I am inclined to think, that while the poor "cocky" slaves from daylight until dark, seven days a week, all he gets is the skim milk, while those who handle the currency get away with all the cream. What "applies to the farmer can be applied generally to all industry. If the banks were to be satisfied with a modest return on capital invested, especially when times are hard, there would not be so many hard things said about banks and bankers. It is quite commonly asserted that instead of the banks being as helpful as they might be in times of stress, they more nearly resemble a leech. '<

Would you be kind enough to give vour readers some information in reference to the dividends paid each year on paid-up capital, and the amounts ndded to reserves, sav over a period of five vears. of the banks, operating in New Zealand. In other words, give the public as briefly as possible, a clear idea of the earnings'of these institutions Evervbodv will then be able to iudge whether the soueezinc that onr visitor mentions is effective in obtainin<* the iuice. —Yours, etc., HIRAM HUNTER. Dalhngton. July ..17th, 1930. [We give below as many of the particulars our correspondent asks for as we have been able to collect 'since las letter reached us: . BANK OF NEW ZEALAND.

p er Amount. Reserve. £ 1926 1927 1928 1929 1930 °13 3 " 14 3 771.814 " 14 3 793,344. •• 143 814,893 ' " 14 3 817,969 299,769 219,277 122,870 310,066 125,000 BANK OF NEW SOUTH WALES. pp r Amount. Reserve. £ 1926 1927 1928 1929 "o'.' •• \%\ 886,797 1 Si 936,905 10 750,000 349,559 339,450 248,038 244,825 UNION BANK. Paid to Per Amount. Reserve:' 1926 1927 1928 1929 : c ®^ t - . 525,000 ' -*e 525,000 •• 15 562,500 " 15 600,000 1 t52,611 ■t62,426 11,465 Dr. 13,068 buildings and £&5,000 for bank guarantee and provident fund in 1929.

BANK OF AUSTRALASIA. Paid to Per Amount. Reserve. cent. • £ £ 1920 .. 14 560,000 52,62! 1927 .. 14 500,000 44,060 1928 .. 14 595,000 T 193 1929 .. 14 630,000 47,183 t £80,000 appropriated for depreciation of premises. NATIONAL BANK. Paid to Per Amount. Reserve. cent. £ £ 1926 .. 14 277,741 25,340 1927 . . 14 280,000 2,725 1928 . . 14 280,000 f Dr. 10,197 1929 .. 14 280,000 fDr. 10,418 ■t : Pension and gratuity funds: £10,000 in 1928 and. £11,000 in 1929. COMMERCIAL BANK OP AUSTRALASIA. Per Amount. Reserve. cent. £ £ 1926 . . . 15 119,359 t298,751 ■ 1927 .. 15 149,726 t315,619 1928 15 185,937 t308,726 1929 . . ■ 15 223,438 t303,704 t Including premiums from shares— £233,876; £204,917 ; £233,328; and £250,212 respectively.