CHEAPER MONEY.

Press, Volume LXVIII, Issue 20619, 8 August 1932, Page 12

CHEAPER MONEY.

AUSTRALIAN RURAL CREDITS. NO ALTERATION IN EXCHANGE. (UKWBD PKBSS ASSOCIATION—BY ELECTSIO TELEGRAPH— COPYBIQHT.) MELBOUBNE, August 6. Sir Bobert Gibson (chairman of tlie Commonwealth Bank Board) announced a reduction in the rate of advances from the Eural Credits Department from 5 to 4J per cent., in a statement at the close of the Commonwealth Bank Board's monthly meeting. He said: "In announcing that there will be no change in the rate of exchange on London this week, I take the opportunity of stating that the Board has given this matter the fullest consideration, and, taking all the factors into consideration, it sees no justification for any alteration in the rate at present. The balances in favour of Australia at present held in London are ample to meet normal demands for London money, and we are now within a few weeks of beginning the new season's wool sales, when funds will again begin to accumulate in London." BANK OF NEW SOUTH WALES ACTS. NO LOSSES ON TRANSACTIONS. SYDNEY, August 6. The Bank of New South Wales announces that it is making a further reduction of one-half of one per cent, in the rates of interest charged on individual advances, to date from July Ist last. ' Sir Bobert Gibson added: "It may be interesting to note that since the creation of the Eural Credits Department an aggregate sum of £45,211,124, in the form of advances, has been availed of by wheat and other pools, the maximum amount in any one year being £8,634,863. No losses have been incurred by the bank in these transactions." TRUSTEE SAVINGS BANKS. ASSOCIATION FORMED. The announcement that an association of trustee savings banks had been formed was made at the monthly meeting of the trustees of the Auckland Savings Bank. The association was formed as a result of a recent visit to Wellington of Mr H. E. Vaile and Mr T. N. Smallwood, president and manager, respectively, of the Auckland institution. At, a conference with representatives of other similar banks there, endorsement was given to objections already raised by the Auckland bank to the legislative reduction of the rate of interest. Various other details in connexion with recent legislation were discussed, and attention was also given 1o •the question of revising the Savings Bank Act. These matters will shortly be brought under the notice of the Government. Mr Vaile was appointed chairman and Mr Smallwood secretary of the new association. EMPIRE MARKETING BOARD. EFFECT OF ECONOMIES. The fact that the National Expenditure Committee in England recommended the abolition of the Empire Marketing Board is commented upon in the Board's annual review for the year 1931-32, ending in May, 1932. "In the summer, the Board was involved i" drastic economies which had to be effected in public expenditure," the report states. "The Committee of National Expenditure had, indeed, recommended the abolition of the Board. The Government informed the Dominion Governments that it did not contemplate giving effect to that recommendation. But they had to reduce the money available for the Board, and decided that for the year 1932-33 their net vote would be £300,000, instead of £560,000. For the year 193132 the Board were called upon to surrender £IIO,OOO by effecting rigorous economies. Research has proved, naturally, the least elastic of the Board's activities from- the financial point of view. Work has to be planned years ahead, and cannot be abandoned in the later stages without obvious and grave Waste. Much of the work is dependent upon other work being continued at some other centre. In addition, the practice of the Board has been to make grants in conjunction with other bodies and it is seldom free to withdraw. Nevertheless the goodwill of those in charge of the research work and in receipt of grants and their zealous cooperation in the quest for possible economies enabled reductions in research commitments, ranging from 10 to 25 per cent.,'to be effected throughout the range of the Board's commitments. Similar reductions were effected in publicity work and in office expenses." FORTUNE IN SEVEN YEARS. Again and again fascinating details are revealed of how advertising in the newspapers has developed huge businesses from small beginnings. The latest instance concerns a civil servant, who made a garden roller out of scrap iron and cement, and a colleague who borrowed it in the usual neighbourly way. Between them they made some more to add to their incomes, and in this way began a venture which has succeeded beyond their wildest expectations. The roller, improved by experience and ingenuity, was given a registered name and a few modest advertisements in the London "Daily Mail." The rest or the story is told by Mi" J. G. Stephens, whose advertising agency has been associated with the amazing progress of the concern from this point. "To-day those two young ex-civil servants are the heads of the great firm which bears their names. Scoffin and Willmott, Ltd.'? Mr Stephens said:— , "In seven years, with the aid or consistent advertising, they have sold many hundreds of thousands of the now well-known Ironcrete EoUer. In contrast to their first modest efforts in a disused garage, thev have now a huge modern factory on a nine-acre site at Barking. Messrs Scoffin and Willmott are emphatic that their success on n m> scale dated from their decision to nationally in the | 'Daily Mail.' "