COMMERCIAL & FINANCIAL

Evening Post, Volume XCVI, Issue 17, 19 July 1918, Page 10

COMMERCIAL & FINANCIAL

iivemug Post, Thursday. The following details of British banking amalgamations and absorptions have been taken from the Economist of latest dates to arrive. Since 1914 there have been 17 banks absorbed and recently in Australia two, and in Canada two. Joint stock banks in England in 1890 numbered 104; in 1914, S8; 1915, 37; 1916, 35; 1917, 34. In Scotland in 1909, ten; in 1917, eight. In Ireland there has been no reduction since 1890, when thcro wevo nine banks. Private banks since 1895 have dwindled down from 38 to 7. The Economist remarks on the gratifying increase of deposits in the banks—"to those who still believe that it means a corresponding increase- in our nation of wealth." A year ago the increase shown in deposits was £200.000,000. This year it is £261,000,000. Capital and reserves of British and Irish banks amount to £114,989.400, an increase of £4,243.300 over 1916-17. Current and deposit accounts :iro £1,705,842,200, an increase over 1916-17 of £261,415,400. Profits of the. banks during the financial year were as follow : — . £ English .- 11.167,481 Scottish '2,049.576 Irish 1,185,065 The percentage oE profits distributed to shareholders in English banks has shrunk from 90 per cent.—paid out eight years ago—to 46 per cent., suggesting that bankers are keeping their balance-sheets as strong as possible for after-war trade requirements. The returns to investors in English bank shares range from 5£ per cent, to 6j per cent. The Scotch banks yield is more regular, and tho Irish banks average 5 per. cent. M2UTRAL BANKS.—"To banks in the neutral as well as in the belligerent countries," writes the "Finanstidende," of Copenhagen, "the years of war have been a period of prosperity as no other period in former times. Most of.tho banks got over the shock caused.by tho breaking put of the war very quickly, and the time immediately following this was a period of continual success to the banks. As lato as 1915 the annual reports bore the marks of old conditions which necessitated tho writing off of considerable amounts, but the yoiir 1916 showed clean accounts and allowed of a consolidation unheard of in the history of the banks. Tho year 1917 has further strengthened this development, and apparently created a most healthy .banking situation. It lams money every day, and money is abundant everywhere So there might bo every reason to ask why tho rates of interest are not reduced. That the banks do not proceed to such a reduction of rates is surely due to tho general unsettlement of tho times, .which makes it necessary/ to keep the national financial resources as available as possible. That day may unexpectedly come when tho abundance of money has vanished into air, and the banks must mobilise all resources to meet tho claims of thciv customers." DAIRY PRODUCE—Discussions with the Minister in ' Charge of Imperial Supplies will be had by producers relative to tho disposal of next season's output of butter and cheese, and especially with regard to equalisation of returns so far as supplies to tho local markets are concerned. Under tho terms of contract in regard to the sale of the surplus butter production of the Commonwealth to the Imperial Government for tho season just ended, tho Federal authorities retained from shippers 3 per cent, of the valuo of butter handed over, in order to cover administration and incidental expenses. It now appears that there is a large sum available for distribution amongst tho shippers concerned, and tho executive committee in Melbourne has recommended to the Fnrlora.l Butler Committee that about £50.000 should be paid over accordingly. While the total may possibly reach £80,009, tho payment would work out at only about £2 10s per ton. "No announcement had boon made when the Sydney mail loft as to whether the Imperial Government will accept the present Australian season's surplus at ISO? per cwt. The last cable message received advised that tho Home authorities were first of all enquiring in to the freight position, and until this is thoroughly gone into no decision may be expected. Subsequent to thecessation of the Imperial Government's operations m Australian butter, large quantities of butter had accumulated in tho cool stores of the principal producing States, and negotiations wore opened for tho disposal of those stocks. Cable messages from London now adviso that Groat Britain will accept tho accumulation to 30th' June at tho rates hitherto in forco, namely, on the basis of 151s per cwt, f .o-b. for butter grading 90 points. By mail advices from New York, dated Ist May, it is learned that tho British order for 12 million pounds of American cheese had been filled and that further tenders at 24 cents per pound had been made. HEMP.—Everything in connection with the disposal of hemp is in suspense,' for the market has hardjy recovered from the blow'consequent on the U.S. Government's fixation of the price of sisal, its competition in tho States. But very littlo fibre is now coming along, so that there is no pressure on tho part of millers to sell. In the circumstances no good purpose would bo served in naming prices. WOOL.—There is comparatively little doing with respect to wool except contemplation of" tin. large quantities held on Imperial Government account, and wondering if any material clearance of the stores will be effected in time for the next clij. Otherwise to find room for its adequate display in Wellington will be rather difficult. Levin and Co. are building at Kaiwarra. an additional store to take 12,000 bales, to bo ready by October. It is expected that every square foot of suitable floor space will be required in the city for wool coming in next 6eason unices a considerable quantity of the old clip is lifted. TEA.—Tho catalogue for this week's Colombo salo amounted to barely a million pounds instead of the customary offering at this time of year of three millions. It is thought hero that the British Tea Controller has been securing large quantities for tho Army and Navy and civilian requirements. Prospects of Ceylon tea business for New Zealand are unfavourable. No through bills of ladingfor this country a-ro now being issued, and shipments are ma.de only to Melbourne and Sydney. Afterwards buyers have to I make _ their own arrangements to meet, transhipment and other charges. There was no Australian buying in. Colombo last week, and prices wore slightly easier. A. steamer left Colombo for Australian ports rathor hurriedly, lifting only about half the quantity of tea that had been arranged for, consequently there is some 3,000,000 pounds lying in Colombo that has yet to bo disposed of. Calcutta prices wero cosier*at last sales, except for pekoes and orange pekoes. The next Calcutta salo will bo on 23rd July. The announcement that tho Federal Government has decided to allow the, importation into Australia until June, 1919, of Java tea, to the extent of 50 per cent, of tho quantity imported by each importer during- the year 1915-16, had a depressing effect upon the Sydney market. Buyers believed that with this new source of supply opened prices would decline, but, on the other hand, ijnporters think that no Java lea can be landed in Sydney ' for _at least six weeks, and that in any caso immediately tho Dutch people wero advised that the embargo had been lifted they advanced their prices. A well-known brand of New Zealand-packed tea, formerly sold at 2s retail, and for some time past at 2s 3d, has now been advanced to 2s 6d. GENERAL GOODS.—An advance of £1 per ton on tapioca is reported by cable. Poppers aro easier by id per pound, according to a report, from Singapore. Hongkong preserved ginger has firmed -Jd per pound.