COMMONWEALTH BANK.

New Zealand Herald, Volume LXVI, Issue 20242, 30 April 1929, Page 9

COMMONWEALTH BANK.

AGENCY IN NEW YORK.

INSTITUTION TO BE. CLOSED. Australian and N.Z. Press Association. NEW YORK. April 28. A brief announcement appeared to-day among the financial notices in tho newspapers to the effect that the agency of the Commonwealth Bank will bo discontinued after June 10. This came as a distinct surprise and was received with considerable regret. It is realised here that unquestionably the principal reason for tho opening of the agency was to arrange Australian financing in New York, tho secondary purpose being tho development of a general banking business for foreign trade. There lias been no Australian financing in New York in tho past year, owing to tho general condition of the credit situation. However, this has not been peculiar to Australia, but has affected all foreign borrowers. Tho tightness of money, moreover, is expected to continue at least another six months, and somo experts even decline to sot any tiino for tho duration of tho extraordinary situation.

Tho feeling is that the Commonwealth J?ank's agency, however, lias played an important role from an international point of view, and that it has been an important trade factor—for instance, there has been a new development in tho Australian hardwood export trado from hero in the past year—and that tho closing of the doors of tho bank is unfortunate.

It is believed that the particular date chosen for tho closing of the bank is due to the fact that the agency would have had to seek for new premises on .Juno 30, because the building at 25, Pine Street is to bo demolished shortly. The part which tho money situation is playing in tho closing of the bank has been well considered in New York. Financial circles are particularly arrested by tho fact that tho various internal issues floated in Australia have been so successful and on such good terms that the whole question of Australia going into foreign markets may require reconsideration.

Those who are particularly familiar with Australian banking conditions, however, ask whether a nioro basic and less apparent reason for the withdrawal of tho Commonwealth Bank from New York is tho fact that there is sorno impending change in the Australian 'banking situation as a whole; namely, that there is some possibility that the Commonwealth Bank may become a central bank for Australia in all senses of the word, and that under the circumstances tiie propriety of tho latter competing in tho general banking business abroad with other Australian banks is being considered.

It is expected that although the agency is to be shut the appointment of a representative in New York will not bo overlooked.

The Commonwealth Bank has had agents in New York for many years, but in view of the increasing importance of the city as a financial centre, and especially as a potential source of loan money, (lie bank decided to establish an independent agency there. Offices were obtained in Pine Street, in the heart of the financial district, and the agency was opened on December 12, 1927. The last loan offered in New York by the Commonwealth was issued in May, 1928, and there were subsequently many complaints that instead of being absorbed by American ■investors, the stock fell to a heavy discount and eventually much of it was transferred to London, as it could be bought rnoro cheaply than Australian securities on the London list. LISTING ON EXCHANGE. WARNING TO INVESTORS. A warning (o investors was issued by Mr. G. C. Creagh, chairman of the Auckland Stock Exchange, yesterday. Several prospectuses which had appeared recently in regard to companies in eourso of flotation had contained the statement that early application would be mado for listing on the Stock Exchange, said Mr. Creagh. Many of those companies had not even mado inquiry regarding the conditions under which the Stock Exchange would give, recognition to a company's scrip. Such recognition could not 1,0 given unless a company complied with the exchange's requirements, laid down with a view to protecting reasonably the interests of shareholders. BUYERS AND SELLERS. STOCK EXCHANGE CHANGE. A change in tho setting out of its quotations was decided upon by tho Auckland Stock Exchange yesterday. It has for many years been (ho practice in Auckland to quote sellers beforo buyers, but it has now been arranged to revert to the custom almost invariably followed elsewhere to quote buyers' figures first. Tho change will bo put into effect within a few days. LONDON DAIRY VALUES. , A. S. Paterson and Company, Limited, has received tho following cablegram from its principals, J. and J. Lonsdale and Company, Limited, dated London, April 26:—Butter: Quietly steady. Danish and New Zealand, 162s to 164nj Australian, 155s to 1595; unsaltcd, "jOs to 1645. Cheese: Quiet. White, 87s to 88s; coloured, 89s to 90s. The Bank of Now Zealand has received tho following advico from its Loudon office as at the close of business last week:—Butter: Quiet; 163s to 1645. Cheese: Quiet; white, 87s to 80s; coloured, 89s to 90s. Amalgamated Dairies, Limited, received the following cablegram yesterday from its London office, dated April 27:—Butter: Our quotations unchanged. Finest, salted, 1665; unsaltcd, 168s: market featureless. Danish, 162s to 164s spot; 1.55s f.0.6. Retails unchanged. Cheese: New Zealand (white, 88s; coloured, 90s); and Canadian unchanged; market steady. Retail unchanged.

TI-IE GREAT MOTOR AGE. CAES IN NEW SOUTH WALES. [FROM OUR IAVN CORRESPONDENT.] SYDNEY, April 18. This is clearly llio ago of motocracy, if one may coin for Iho purpose what seems an eminently fitting word. It, has been estimated, for example, that last year 82 miles of new motor vehicles, mostly cars, found their way on to tho roads of Now South Wales, tho metropolis of Sydney taking about 50 per cent, of these new machines. Tho metropolis, it is estimated, will ho carrying an additional 200 miles of motors in another fivo years' time. It may not sound much, but one may try to visualiso a distance of 200 miles, and think of it in terms of one long stream of motors. For pedestrians, side-stepping with death every hour of tho day in Sydney, (lie vision is not pleasant. The motor industry in New South Wales last financial year yielded in taxation considerably moro than £3,000,000. Tt also paid a wages hill of more than £12,000,000. One b:g Sydney motor firm purchased last year £2,500,000 worth of Australian materials. To-day there is one motor vehicle in New South Wales for about every 11 people of the population.