UNDERLYING WEAKNESS

Evening Star, Issue 22817, 27 November 1937, Page 17

UNDERLYING WEAKNESS

PRESENT YEARS PROSPERITY VIEWS OF BANK PRESIDENT Press Association —By Telegraph—Copyright SYDNEY, November 26. The Bank of New South Wales profit for the year was £543,242, compared with £470,454 for the previous year. The year’s dividend, paid quarterly, is 6 per cent., absorbing £526,000. The previous year’s dividend was 5J per cent. . t ,. Reviewing world conditions, Sir Thomas Buckland, president of the bank," declared: “Our present prosperity has certain underlying weaknesses. We must do all we can to avoid a recession of business activity. From now on the wise industrialist or primary producer will, before adopting any projects for expansion, consider whether ho is in a position to stand up to any reduction in turnover or fall in prices. I counsel the utmost caution. The outlook for the current season seems generally satisfactory, but there have been some rather sharp falls_ in recent months in some of our most important primary products. This drop is quite serious enough to cause some uneasiness, even though it is due rather to the disturbed world situation than any basic unsoundness in the marketing position.’'