BANK OF NEW SOUTH WALES

Dominion, Volume 22, Issue 80, 28 December 1928, Page 12

BANK OF NEW SOUTH WALES

PAST YEAR REVIEWED

BUSINESS IN DOMINION FULLY MAINTAINED

The report presented by the directors of the Bank ot New Somh Wales at a meeting oi the. proprietors in byuney on Noveniuer 2i stateu tnat during me past year urunclies oi the bunk were opened at Comiouolin, King's Cross (S.vmey), "Tutteisalf branch (130 Casiiereagn Street, Sydney), in New Soutli Wales; Tully, in Queensland; Greuiell Street (Adelaide), m South Australia; Gnowangerup, Kojopup, Hay Street (Perth), maraets branch (Perm), Victoria Park (Perth), in Western Australia; aud at High Street (Christchurch), and Lower Hutt in New Zealand. The agencies at Armadale, Dangin, Koorda. Mount Lawley and North Perth, in Western Australia; and at Ruatoria, in New Zealand, were converted iuto branches. The branches at Tweed Heads, in New South Wales, and Mount Morgan, Queensland, were closed. The bank's branches and agencies now number 535. The board placed on record the loss by death of their esteemed colleague, the Hon. Reginald James Black, M.L.C., and their great appreciation of the services rendered by him to the bank during his long connection with it. The board also recorded with regret the death of the Hon. R. J. Lynn, who was a member of the local Board of Advice at Perth, and of Mr. Alfred George Milson, who acted as one of the bank’s auditors for various periods extending over 40 years. The vacancy on the board caused by the death of the Hon. R. J. Black.

M.L.C., has been filled temporarily, in terms of the deed of settlement, by the appointment of Mr. James Burns, who, ns a duly qualified proprietor, is eligible for election to the position and offers himself accordingly. In moving the adoption of the report and balance-sheet the president, Mr. T. Buckland, pointed out that the bank’s note circulation had decreased by £40,000, which, he said, was a normal lluctuation of their note issue in New Zealand. "Deposits,” said Mr. Buckland, “are higher by £2,960,000, which represents an increase throughout Australia and New Zealand of our general commercial business, The Government deposits remain very much the same as-last year. Bills payable, etc., are lower by £1,657,000. Capital has increased by £16,560 by collection of balance of our last new issue, which is now fully paid, and with the appropriation to reserve fund recommended this year, our figures will stand as follow: Capital, £7,500,000; reserve fund, £5,900,000; making a total of £13,400,000. The grant total, including the reserve liability of shareholders of £7,500,000, is £20,900,000. Profit as per balance-sheet shows £41,000 lower than twelve months ago. This variation is more than 'accounted for by advances being £2,055,000 less and deposits, as mentioned before, being higher by £2,960,000, •or in other words, last year our total advances stood 86.76 per .cent, to our total deposits, whereas at the present time they stand 79.60 per cent., and for a portion of the year were running lower still than that. In addition to our usual dividend of 10 per cent., we arc adding a bonus of 10s. per share, but this bonus is only in recognition of a good year and is not to be regarded as of a permanent nature. On the assets side, liquid assets have increased by £3,522,000. There is an increase in coin, notes and cash balances of £990,000; in Treasury bills of £1,500,000; and in Government securities £2,730,000. On the other hand bills receivable in London and remittances in transit are £967,000 less; money at short call £500,000 less; and due by other banks £235,000 less. Advances, as before mentioned, are £2,055,000 less than this time last year, and I would state, gentlemen, that this is not brought about by any restrictive policy on our part, but is a normal fluctuation in our very large business. , Premises show an increase of £125,000. During the . year we have erected and have in course of erection 25 new branch premises extending throughout Australia and New Zealand, and we are also, as you are probably aware, engaged in an extensive new building for our head office in Sydney and also a new chief office for Queensland in Brisbane.

“Our business in the Dominion,” proceeded Mr. Buckland, “is well balanced and fully maintained. The primary production in this favoured country continues to grow and although its public debt, like our own, is very large, its exports, which reasonably balance its imports, are on tlje increase. The season in Australia on the whole may be regarded as fairly normal. A variety of conditions is inseparable from a. Continent of such magnitude and variation of climate as Australia, and although it may be droughty in parts, we usually find compensating good conditions in other parts, as is the case this year. Altogether the prospects of this country should be excellent, but I wish I could harmonise more with the financial policy of our Governments. At a gathering of prominent citizens recently we were told by an eminent Cabinet Minister that if we are to achieve the prosperity of which this country is capable we must spend money. I quite, agree with that, always provided the legitimate revenues of the country make such expenditure justifiable, but I do not hold that our Governments are justified in exceeding their incomes or in keeping up their revenues by excessive taxation. An examination' of public finances, both Federal and State, clearly reveals that our indebtedness has been increasing out of proportion to our production, and unless such a condition is checked it must lend to disaster. From time to time, great wastage is shown in the. expenditure on Government undertakings, and if better value were obtained by the various Government Departments while spending the taxpayers’ funds the necessity for this ever-increasing load of taxation would disappear. . “If people were flocking into the country in millions, as was the case at one time with the United States of America, and those millions were being absorbed and utilised in general production as theirs were, then I would agree to some justification of bur present policy, as our liability would be extending over a rapidly increasing population with its attendant production. Our population, however, is not i.creasing as it should, and the chief factors opposing that progress are our increasing burden of taxation, excessive cost of production, and our strikes, which are becoming notorious throughout the world. m giving vent to my feelings in this way I trust I shall not be misunderstood and create the impression that I am pessimistic in regard to the future of Australia. Nothing could be more foreign to mv thoughts, ns must be so with any thinking person having a knowledge of the great possibilities of this country under proper management. Permanent success. however, is never going to be achieved bv discouragement of the two great essentials of national progress I refer to the confidence nnd individual enterprise of the peonle. which the .notions of some of our Governments would appear tn discourage rather than encourage through the .application of overbearin" taxation, greatly intensified by the maintenance of industrial and/or constructional undertakings from -which neither the State nor country is receiving adequate benefit.”