THE COMMONWEALTH BANK

Marlborough Express, Volume LIII, Issue 271, 18 November 1919, Page 6

THE COMMONWEALTH BANK

EXTIIAOPvDINARY DEVELOPMENT.

• SYDNEY, Nov. 5. The extraordinary success which, has attended the establishment of the Commonwealth Bank qf Australia is apparently the exception which proves the rule in State enterprises. It is a shining example, in a most dismal host of failures, 'of a State-controlledi trading establishment being a success almosti from, the moment of its birth.

The bank eamo into being in 1912, and at the uid of that yeai- had recorded a loss of over £14,000. It smarted absolutely without capital, having only an advance" of £10,000 frmn the "Treasury to meet preliminary expenses. Six months later that deficit had • increased to £46,000, find the croakers croaked in happy unison. But the tiide turned suddenly. In the second half of 1913 the bank made a profit of £1500. In th/ 3 n^xt eighteen months, bringing it up, and well into, the war period, iti wiped off the whole of its deficit and put £2000 to reserves. The war was an absolute Godsend to the bank. All the Government's huge financial transactions rendered necessary by the extraordinary condition of world affairs were done through the Government institution. Profits positivley leaped vp A The reserves . neavly doubled themselves every six months;. The total reserves were just ovre £2000 in June, 19'ju. Four years later,, in June, 1919, they' were just over £2000 in June, 1915. of no less than £453,000 was made in the six months ended 31st Decmeber 1918 aiid in the succeeding halfyear they were £388,000.