TRADING BANKS' PROFITS

Press, Volume LXXII, Issue 21808, 13 June 1936, Page 11

TRADING BANKS' PROFITS

| EFFECTS OF RECENT | LEGISLATION curtailment predicted [THE PRESS Special Service.) WELLINGTON, June 12. The loss of the London exchange in connexion with exports of dairy produce will make unprofitable the working of some of our branches, the existence of which has only been justified because of dairy connexions,” said Sir George Elliot, chairman of directors of the Bank of New Zealand, in his address to shareholders to-day. The speaker mentioned that some of the new legislation would restrict the profits of the trading banks. The Hon. W. Nash, Minister for rmance, who is also Minister for Marketing, is hopeful cf securing a market for all New Zealand’s surplus dairy produce by reciprocal agreements with Britain and other countries,” said Sir George Elliot. “He is shortly to proceed to London with this object in view, and his efforts to expand New Zealand's markets will most certainly have the sympathetic support and goodwill of the public. “One effect of the Primary Products Marketing Act will be that, as from August 1 next, the financing of all dairy produce exported from New Zealand will be undertaken by the Reserve Bank of New Zealand on behalf of the New Zealand Government instead of by the trading banks on account of the dairy companies as in the past, ~ “Thf trading banks have played an important part in financing ahd developing the dairy industry from the inception of the co-operative scheme in New Zealand, and it is not too much to say that but for the assistance given by the banks, the dairy factories as a whole would not bo in