BANK OF NEW SOUTH WALES.

Marlborough Express, Volume XXXIX, Issue 133, 8 June 1906, Page 2

BANK OF NEW SOUTH WALES.

A PROSPEROUS HALF-YEAR

At the hundred and eleventh halfyearly meeting of the Bank of New South Wales, held at Sydney, the chairman, in" moving the adoption ot th-3 report, said:—" Comparing the figures of March, 1905J with those of the present half-year, I beg to call your-attention to the following features : The circulation has increased by the nominal sum of £35,000 only. 'It is becoming more and more evident that notes/ so far as these colonies are concerned, are being Used almost solely for what piay be 'termed pocketmoney purposes, and that the adoption of the cheque, based on # current account, as a means of settling payments ot oven the smallest description, provides the real currency .os. the country. Deposits have increased somewhat over £1,500,000 oh; the year. This- is not quite so large an increase as-that between March, ■1904, and March, 1905? but is ; y sufficiently' r ' * note-vvoi-thy,■ and arises' to, a large extent from the sanle cause which was referred to last jear^ namely, the enhanced income accruing to tneproducing interests.' The increase is fairly evenly divided between, fixed deposits and current accounts. The reduction in the rates of interest paid on the former has Had a steadying effect, as was pointed out last half-year. Bills payable and other liabilities have increased by sbine £800,000, which 'is very largely"in bills payable. This may be fairly taken as an indication that the requirements of our customers t j pay for imports are again on the increase, after a somewhat slack time in this respect. Such a trade tendency was to be expected in view of the very much improved condition of the great producing interests. "The acc-jninlation "of deposit money is reflected very clearly on the asset side. Coin and- its equivalents have increased by £380,000, while money at short call in London shows the large increase of £1,240,000. We have fully availed ourselves of the openings which have presented themselves for placing our spare funds-in London, where at present they are earning good rates, and where they will be readily available when required for use in the business at this end.

"Bills receivable in London or on the way thither, and remittances in trail sit, show an increase "of £720,000, which is really'••part of*"the'-operations just referred to, and will tend to further strengthen the London funds. " Advances are practically stationary, and with reference to these, as has been explained before, you will readily understand that the factors which have brought about a special increase in the deposits, namely, exceptional receipts of money for produce sold, must alike affect the advances by way of decrease. There has been a considerable decrease in individual accounts, but we haver been able to re-lend the money thus repaid to other clients, and ; thereby at least maintain the advances at an even figure. It may be expected that as the improved conditions in our country districts make themselves felt, the requirements of our clients generally will increase! But we have no desire, to force matters in this respect, nor- io encourage any spirit of speculation. . , . . In order to provide suitable accommodation a,t Wellington, N.Z., we have had to dismantle our very very old wooden building—one of the oldest in the city—and erect,an entirely new one. .We have now got a handsome building there, worthy of the capital city of New Zealand, and of our own local headquarters, in that, flourishing colony. ." . . The general conditions in the country, districts are for: the most, part; fairly satisfactory, good rains have' fallen in a large .portion of Queensland, and in some districts of Victoria and New South Wales. There are, however, large tracts of country in New South Wales and-some in Victoria in which the rainfall has been very scanty, and in these portions pastoralists are looking forward with some anxiety to tlie prospects of lambing in the coming winter and spring."