BANK YEAR REVIEWED

New Zealand Herald, Volume LXXII, Issue 22179, 5 August 1935, Page 5

BANK YEAR REVIEWED

NATIONAL OF NEW ZEALAND STRONG HEALTHY CONDITION BURDEN OF TAXATION [from OUR OWN correspondent] By Air Mail LONDON, July 13 " The past year has again been a very difficult one for bankers, and we have been hard put to it to find profitable employment for our funds," said Sir Austin Harris, who presided at the annual meeting of the National Bank of New Zealand. " The signs of returning confidence to which I referred at our last meeting became more apparent during tho year, and trade conditions within the Dominion evince a somewhat more healthy tone, so that we are encouraged to hope that wo have seen the worst. " However, conditions are still far from normal. Any further substantial improvement would seem to be largely dependent on a corresponding improvement in overseas prices for New Zealand's primary produce. The bank is in a strong and healthy condition, and wo shall be in a position to take full advantage of further improvement. Ministers' Visit Appreciated " The visits of the Prime Minister of New Zealand and the Finance Minister have been much appreciated here, and it has been of distinct advantage to New Zealand that at this very difficult time in the history of the Empire, a personal contact has been possible between Great Britain and New Zealand." Reviewing the accounts, Sir Austin said thu directors had transferred JL'SOO,OOO from the currency reserve to an exchange and contingency account. Tho repayment of the large amount of New Zealand Government Treasury Bills and of the special loan to the Government left them with more money in New Zealand than they were able profitably to employ there, and they decided to transfer some of the surplus funds to Britain, where, for tho present, there were available more channels for their employment. To provide for tho cost of these remittances and for any further similar transactions that might be found desirable they had made this transfer of £500,000. Viscount Bledisloe's Confidence Gross profits were £20,000 better, hut Dominion income tax, under the heading of expenses, had absorbed the whole of this improvement. Income tax was still a very serious burden on the banks in New Zealand, but they were not without hope that before long the method of assessment would be juaced on a more equitable and less onerous footing. The Reserve Bank had been established with the minumin of disturbance, Sir Austin said, while tho more settled feeling with regard to exchange was reflected in the balance of trade figures. He added that as both Australia and New Zealand had proved they could send chilled beef in good condition, it seemed only reasonable to hope that they might receive a greater proportion of the total beef imports to Britain. Sir Austin welcomed to the meeting Viscount Bledisloe, who in reply paid a tribute to the services of the general manager in New Zealand, Sir James Grose." Lord Bledisloe also expressed Confidence in the future of the dairy industry and remarked on the opportunities for the investment of British capital in the Dominion. FOREIGN EXCHANGES DOLLAR AND THE FRANC (Received August 4, 5.5 p.m.) British Wireless RUGBY, Aug. 3 The following rates oil foreign exchanges were current yesterday, compared with the cabled quotations 011 August 1 and par:— Aug. 2 Aug. 1 Par Montreal, dol. . . 4.96% 4.96% 4.866 New York, dol. . 4.95%„ 4.95"/,,, 4.866 Paris, fr. .. 74'%. 74124.21 Brussels, belga . 29.33% 29.35% 3a.00 Geneva, fr. .. 15.13 15.15 25.22 Amsterdam, fl. . 7.30% 7.32% 12.10 Milan, lire .. 60% 60Mi 92.46 Berlin, r.m. .. 12.29% 12.30'/, 20.43 Stockholm, kr. . 19.39 l / 3 19.39'/, 18.159 Copenhaßen, kr. . 23.39'/, 23.39Va 18.159 Oslo. kr. .. 19.90'/, 19.90'/, 18.159 Vienna, sch. .. 26'/, 26'/, 34.585 Prague, kr. .. 119'/4 11 OVi 164.25 Helsincfors. mark 226% 226% 129.23 Madrid, pes. . . 36%, 36%, 25.221 Lisbon, escu. .. 110% 110% 110 Athens, dr. .. 517* 517* 375.00 Bucharest, lei. . 625 * 620* 813.6 Hio de Janeiro, mil. 4Vid* 4%1* 5.899 d Buenos Aires, dol. 35d* 35d* 47.619 d Montevideo, dol. 39% d* 39% d* 51d Bombay, rupee . 18% d 18' id 18d Shanghai, dol. . 18Vi,id 18' id Hongkong, dol. . 25% ed 25'.-id Yokohama, yen . 14% 2 d 14%, d 21.5? d Batavia, (1. . . 7.29'/, 7.28'/, 12.10 Belgrade, din. . . 216 216 276.31 Warsaw, zloty .. 'Sellers. v (Received August 4, 5.5 p.m.) LONDON, Aug. 3 On the foreign exchange market today the following quotations ruled: New York, 4.95 11-16 dollars; Paris, 742 francs; Batavia, 7.28J Horins. NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice: — Selling:, United States - Canada T.T. . . 3.97'4 3.98 On demand . . 3.97 3 / 4 3.95% Buying: On demand .. 4.02/ i 4.02% Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice:— T.T. On Demand To £1 N.Z. Currency Selling Buying Selling U.S.A., dol. .. 3.97',; 4.02% 3.97% Canada, dol. .. 3.97% 4.02% 3.98% France, fr. . . 59.44 Noumea, fr. . . 58.69 Papeete, fr. ~ 58.69 Belgium, belga .. 23.259 Germany, r.m. .. ' 9.680 Italy, lire . . .. 47.86 Switzerland, fr. .. 11.977 Holland, 11. .. 5.754 Java, fl. . . .. 5.754 Sweden, kr. .. 15.458 15.828 15.468 Norway, kr. .. 15.868 16.238 15.878 Denmark, kr. .. 17.878 18.248 17.858 Austria, sch. . . 20.52 ' 20.54 Czecho-Slovakia, cr. 95.33 N.Z. pence to • Japan, yen . . 17 a %, Shanghai, dol. .. 23%, 21 a %, 23%, India, rupee .. 22'%, 22%, 22 ai /„ Ceylon, rupee . . 22"/,, 22%, 22 a %, Hongkong, dol. .. 31"i # 30% 31% Singapore, dol. . . 35% 34%, 3o'/in The cost in New Zealand currency of the pound sterling, and of tho principal overseas units, 011 tho latest quotations, is as follows: — Present Price Par sd b d Australia, pound .. 19 10.81 20 0.00 London, pound .. 21 10.65 20 0.00 Fiji, pound .. .. 22 5.66 20 0.00 New York, dollnr .. 5 0.22 4 1.31 Montreal, dollar .. 5 0.15 4 1.31 Paris, franc .. .. 0 3.99 0 1.98 Berlin, reichmork .. 2 0.28 0 11.74 Copenhagen, krone .. 1 1.33 1 1.22 Yokohama, yen .. .. 1 5.61 2 0.58 CUSTOMS EXCHANGE RATES Bates of exchange ruling at tho announced dates of departure of vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned 011 arrival of the vessel in New Zealand. Finally declared rates are marked*:— Canadian Highlander. Canada, dol. 4.91% Brisbane Maru, Japan, yen .. 14% d City of Glasgow, America, dollars 4.95"% Mariposa, America, dollars .. .. 4.96*% Anglo Canadian, America, dollars 4.951% Niagara, Canada, dollars .. .. 4.96%