STRONG POSITION

Hokitika Guardian, 17 February 1932, Page 2

STRONG POSITION

“BIG FIVE” BRITISH BANKS. GREAT LIQUID RESOURCES. LONDON, January 25. A feature of the 1931 accounts of the leading British joint-stock banks i» their disclosure of extraordinary strength in liquid resources. This enabled the banks to weather almost unparalleled financial storms without suffering harm beyond a slight reduction in net profits. Despite a fall in deposits totalling 155 millions sterling, and reductions amounting to 30 millions in advances, the aggregate of the declared net profits of the “Big Five” was £10,022,1.00 for 1930, and £9,128,00.; for 1931, representing a decrease in the latter period of less than 10 per cent. (Moreover, since British banks never write up investments which appreciate after purchase, and since all were heavy buyers of British Government securities at last year’s lowest levels, there are inner reserves under this head alone which cannot be accurately estimated.

By publication of the clearest and fullest general returns seen for many years the banks have scotched foolish rumours which have recently been affecting credulous investors and depositors.

The home trade statistics for December show more hopeful tendencies in coal mining and engineering. The majority of the textile and metal trades are definitely improving. There is also some improvement > ri the paper, glass and tailoring industries, the distributing trades and the transport, hotel, entertainment, dock and harbour services. “The Economist” considers these recoveries sufficiently important to outweigh some additional unemployment in the pig iron, tinplate, pottery, bootmaking an ( | building industries and >n marine engineering.