STRONG DEMAND FOR CREDIT

Press, Volume XCIII, Issue 27988, 7 June 1956, Page 17

STRONG DEMAND FOR CREDIT

BANKER REVIEWS RECENT TRENDS

EFFECT OF MONETARY MEASURES

(Special Correspondent N.Z.P.A.) LONDON, June 6.

Strong pressure from the bank’s customers for increased overdrafts for several years had been resisted by the National Bank of New Zealand, Ltd., which had actually reduced its advances by £1,770,000 in the year ended March 31 this year, although ''it was not until February that higher interest rates had. been authorised. This is stated by the chairman of the bank (Mr Arthur H. Ensor) in his report' to be presented to the annual meeting on June 28.

‘‘There has been the strongest pressure from our customers for increased overdrafts for several years, and the chahgeover in financing of the meat industry from bulk buying by the British Government to private trading necessitated a considerable increase in financial support for industry from banks. The reduction in bur advances has been achieved only by exercising strongest'pressure upon all borrowers and upon those desirous of increasing their commitments. Banker’s “Unpleasant Duty”

“This continued pressure upon our customers, although at the moment necessary, is not a pleasant duty for a banker to pursue. Until February last no change of Government policy was forthcoming by way of permissive increases in the interest rates banks were allowed to charge on overdrafts: if it had been' conceded earlier this might have acted to some extent as a deterrent to borrowers,” said Mr EnSOr - ... • -KT The general position in New Zealand was one of prosperity, but still inflationary, with over-full employment, strong demand for goods and services, and lack of personal savings. ‘‘There are signs, however, that the financial measures taken over the last 12 months’are beginning to have some effect in damping down inflationary trends, and’ conditions are tending slowly to assume a more healthy form. “It is clear that present financial policies will have to be continued for some time if relative stability is not only to be achieved, but is also to be maintained.” MELBOURNE WOOL SALES CROSSBREDS FULLY FIRM (N.Z. Press Association—Copyright) MELBOURNE, June 6. The market was strong and buoyant again today at the Melbourne wool sales with sustained general competition from Central and West European buyers. Japan and local mills. There was a particularly strong inquiry for finer wools while prices for crossbreds were fully firm. The offering of 12,600 bales was fully cleared. Crossbred prices were:—6o/64’s, super, 103 Jd; 56’s, super. 83d; 50’s, good to super, 69d. COLOMBO TEA SALES (N.Z. Press Association —Copyright) COLOMBO, June 5. At this week’s Ceylon tea sales 6,500.989 lb were offered. The market was active, with appreciably dearer rates, particularly for useful liquorings. Prices:—High-grown broken orange pekoe, 320 cents per lb; good medium broken orange pekoe, 240; medium liquoring broken orange pekoe, 202; medium liquoring orange pekoe, 225; medium liquoring broken pekoe, 175; medium liquoring pekoe, fanning, 235; low medium broken orange pekoe, 200; low medium pekoe, fanning, 220 cents; low medium orange pekoe, 210; low medium pekoe, 190; low medium dusts, 175.

MINING SNOWY RIVER DREDGE (brunt Out Own Hennrteri GREYMOUTH. June 4. The return from the Snowy river dredge for the fortnight ending May 31 was 38 ounces of gold from 42,000 yards of spoil, excavated in 252 hours.