TRADE AND BANKS
"BIG-FIVE" BETUBNS WHAT THEY REFLECT "Evening Post," 28th April. In the ably-edited Bulletfci of Imperial Chemical Industries, Ltd., for March, the figures of the Big Five British banks are reviewed.' These banks are Barclay's, Lloyd's, the Midland,- National Provincial, and the Westminster. Their reports for 1927 show that Great Britain has recovered from the upheaval of 1926 and has "sufficiently recuperated to make steady progress possible in 1928." Reference is made to the healthy exchange throughout the year, particularly ■ in dollar-sterling which is regarded as "the most hopeful sign on the horizon." Yet on the whole bank profits continued to fall as a result of the lower money rates current during 1927. The deposits with the five banks as ,i whole show-a substantial increase, ljut those of the Westminster are rather less than for 1926. The deposits for 1927 were as follow:— ' ... £ • Barclay's 318,373,472 Lloyd's 358,662,544 Midland ' 376,122,881 National Provincial 274,460,629 Westminster 231,839,154 Total £1,559,458,680 In British banking circles, it is reported, a number of definite opinions are coming to be generally accepted; as, for instance, that the slow recovery of trade at Home and the increasing purchasing power on the Continent will combine to re-establish mdre or less normal conditions in all branches of econmic activity; that, while banks are only too anxious to aid industry, there is no desire on their part to follow the example of the German banks and participate in directing industry; that the •prudent and conservative policy of the vast, which has established an unshakeable confidence in the English banking system, is to be maintained; that the burden of existing Imperial and local taxation on business is heavy, and therefore hinders business expansion; and last, though not least, that British trade and British banking should have regard to the possibilities of the Empire as an economic unit. ..... , That this last piece o£ advice is already lieing followed is evidenced by the proportion of British capital which is loaned to different parts of the Empire. A number of compilations have been received by ' Imperial Chemical Industries in regard to this matter, oue such, which has the advantage of comparing 1913 with 1927, shows . the following figures of British lending overseas:- jg^ m 3 Million Sllllion .£ P.C. £ P-C. British Empire .... 100 S3 100 50 Europe -|0 2« '■• ' America* 24 1> SO 4U China ~ ~ _' __•"_ Total 131 100 202 100 'Includes United States, Central and South America. , , T . , For the year 1027 the largest Imperial borrower was Australia (£52 million); India came next with £18 million, and the Union of South Africa with £7 milIf' additional proof were necessary in eupport of the soundness of British banking it could be found in the mid-February weekly return of the Bank of England, m which the gold reserve was 38 per cent, of the Bank's liabilities. This figure was higher, than in any other week since 2S)tli July, 1914, 10 points higher than mid February. 1927, and nearly 16 points higher than at the time when the gold standard ■n-as reintroduced in April, lW<.u. <
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19280428.2.118.1
Bibliographic details
Evening Post, Volume CV, Issue 99, 28 April 1928, Page 12
Word Count
507TRADE AND BANKS Evening Post, Volume CV, Issue 99, 28 April 1928, Page 12
Using This Item
Stuff Ltd is the copyright owner for the Evening Post. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.