CAPITAL AND POLITICS

Evening Post, Volume CXV, Issue 48, 27 February 1933, Page 10

CAPITAL AND POLITICS

'. The sensitiveness of capital to political .njauences -was never more clearly shown than in the movements of the fixed -deposits in the trading banks o£ ?Jew South Wales and Victoria during the year 1832. Mr. Lang assumed office in. the middle of the December quarter of 1930. Normally fixed deposits in that quarter should increase. In New South Wales they showed a moderate decrease, and a slight increase" in Victoria. ' The downward movement in New South Wales continued throughout 1931 and to the June quarter of 1932. The Victorian fixed deposits during every quarter of the period showed increases, and substantial a\ that from March of 1931 onward to June of 1932. Then with the dismissal.of Mr. Lang in.the June quarter, the movements, were reversed in the following quarters, the New South Wales fixed deposits increasing and the Victorian fixed deposits decreasing. Capital was! repatriated by its New South; Wales . owners. The movements are given below:— - ' FIXED DEPOSITS. ■~. • New South ■ Vic-.* Common- • - .- . Wales. . torla. . wealth. , 193°- £1000. . £1000. £1000. June 68,925 "62,502 178,793 September ..... 69,674' 62,576 179,757 December ...... 68,486 62,624" 179,833 . 1931. ■ , March : ....67,129 63,235 179,349 June. .... 64,421 66,528 178,807 September 61,891 67,811 177,660 December 60,058 71,567 181,206 1932." Mirch > 59,677 79,334 '189,879 June 56,030 83,704 189,953 September 56,944 78,897 185,631 December ..... 59,003 77,305 187,300' BRITISH BANKS. Reports published of Lloyds Bank and the Midland Bank show a degree of falling off/ „ .'ln the.case of Lloyds the Teductioa is appreciable. "Compared with 1931, the'net profit available, after the customary tharges, is £376,393 lower, at £1,550,511, and though the allocation to contingencies has been halved, at £200,000, the final -distribution on the 'A' shares is to be^'curtailed to 5 1-3 per cent, (actual), which compared with 6 2-3-per cent, (actual), for /the, interim distribution.- The total pay-ment-for the twelve months'is thus 12 per:cent., against 13 1-3 per cent, for 1931, 15>per cent, for 1930, and. 18 2-3 per cent. for the preceding years. .The sum carried forward at £514,746 goes against £522,055 brought in. It has been decided to re- ■ store a sum of £ 500,000 to reserve fund. "After making full provision- for bad and doubtful debts, the net profits of the Midland Bank for the year- amounted to £3,019,142, which compares with £2,056,985 for 1931, and as the sum brought ny at £850,015, was about £1200 less than on the: previous occasion, the net reduction -in - the available total. was a trifle '■ of ; £39,115 at £2,859,158. ■ The dividend of 16 per cent, is repeated, though this time the full standard rate of 5s is borne by the shareholder, whereas a year ago.the additional 6d of income tax was paid by the bank on the interim - dividend. To that small extent there is a variation in the 'distribution, and as the allowance to reserve for future contingencies is'reduced by £20,000 to £300,000, the carry-forward is raised by £9000 to • £859,398." ,