BANKS AND BUSINESS

Evening Star, Issue 20346, 30 November 1929, Page 15

BANKS AND BUSINESS

INCREASE IN ADVANCES POLICY OF PRUDENCE INDICATED Press Association—By Telegraph—Copyright* SYDNEY, November 29. At the ordinary general meeting of shareholders of the IBank of New South Wales the balance-sheet showed that the nett profits for the year ended on September 30 amounted to £994,824, to which was added the undivided balance from last year, £163,653. Interim dividends already paid absorbed £562,500. The further quarter’s interim dividend now recommended absorbs £187,500,' while £250,000 will be added to reserve and £163,478 will be carried forward. The recommendations were affirmed by the meeting, and Sir Kelso King and Mr Charles Binnie were re-elected to the directorate.

The chairman (Mr Thomas Buckland), in the course'of an address which was prepared before the Federal Budget proposals were brought forward,pointed out that note circulation in New; Zealand had slightly decreased. The total deposits (£66,056,000) showed a small increase of £1,541,000. This, taken with the experience of other hanks on this point, disclosed a slow-ing-up of the capacity to provide for the development of industry. The drain on local funds, as the result of borrowings by Governments and local authorities, had had appreciable effects on the accumulation of deposits, without which steady progress was impossible. An increase of £8,074.000 _in advances, which were now £59,427,000, testified how customers had found it necessary to lean on the bank. A serious fall in the values of staple products must lead to a drop in the values of land and other assets, and dictate a policy of prudence to conserve the bank’s resources. The taxation burden continued to grow, and now represented £4 133 4d per cent, on the banks’ _ capital.While New Zealand was enjoying good seasons, and her external trade balance favoured exports, Australia’s balance was the other way. DROP IN SHARES. SYDNEY, November 30, (Received November 30, at 10.2(3 a.m.)’ The investment market on the Stock Exchange underwent. a. change when the decision of the directors of the Bank of New South Wales not to pay a bonus to shareholders this year was announced! "■ The £2O shares, which were selling during the week at £47, 10s, fell from £3 to £9.