AUSTRALIAN BANKS

New Zealand Herald, Volume LXXII, Issue 22259, 6 November 1935, Page 9

AUSTRALIAN BANKS

ADVANCES INCREASING OVERSEA FUNDS WITHDRAWN REPATRIATION OF DEPOSITS A significant feature of the aggregates of abstracts of the 10 trading banks in their Australian business during the September quarter is the largo decrease, £17,362,122, in the holding of Australian notes and cash with the Commonwealth Bank, compared with a year ago, remarks the Sydney Morning Herald. Accompanying this movement is a not decrease in deposits of £6,154,568, made up of an increase of £4,999,177 in current accounts, and a decrease of £11,153,735 in fixed deposits. During the same period, advances and discounts increased by £15,690,434. The decrease in fixed deposits and in cash holdings is due to some extent to subscriptions to tho Commonwealth June loan, but at least just as much to the repatriation of money held for long by overseas institutions in Australia in tho hope that exchange woidd bring Australian currency nearer sterling.

Tho banks have used their cash with the Commonwealth Bank to purchase from the bank overseas funds with which to meet the repayment of the deposits owned overseas as they became due. '

The increase in advances speaks of extensions of trade and industry, though it is to be hoped that too much of the advances has not been devoted to the acquirement of real estate for other than providing housing for productive enterprise. There has,been a disposition among some banks not, perhaps, to withdraw advances, but. to curtail new advances. Nevertheless, the increase on the quarter is £4,321,905. It is in the September quarter that the heaviest advances are made to pastoralists for financing tho getting in of the wool clip. SMALL BUSINESSES PROVISION OF CAPITAL DIFFICULTIES JN ENGLAND The provision of capital for small businesses has been tho subject of considerable discussion in England recently, and some of the difficulties were explained at the annual meeting of the Industrial Finance and Investment Corporation, Limited, London, by the chairman, Mr. P. Lindenberg. When the corporation announced two years ago that it was prepared to provide credit or capital for promising commercial or industrial units which were still in the development stage a large number of applications were received, he said, but very few were suitable for further' investigation. The reason was that most applications came from people who had new inventions, patents or even only ingenious ideas. The next largest number came from existing firms which required further capital, not because they were on the point of expanding, but because the existing capital was insufficient and they had to fund loans which were repayable at short notice and which bore a fairly high rate of interest. The third category of applications came from firms which wished to expand

The utmost care had to be exercised in investing money in small enterprises as it was very difficult to realise within a reasonable time. Furthermore, if capital was spread over a number of undertakings the expenses of supervision were comparatively heavy. Each business required a specialised knowledge and as outside experts had to bo consulted, on the merits of each case oven preliminary investigations entailed largo expenses.

BUTTER VERY QUIET

FINEST 103/- TO 104/-

The London butter market is very quiet, finest salted New Zealand being quoted at 103s to 1049 per cwt., and first grade at 101s to 102s, according to a cablegram received by Joseph Nathan and Company, Limited, from Trengrpr.se and Nathan, Limited, under date November 4. The top price shows a fall of Is over the week-end and is equal to 128s per cwt. in New Zealand currency. FLAX INDUSTRY IMPROVES IMPETUS IN THE MANAWATU [bv telegraph—OWN correspondent] PALMERSTON NORTH, Tuesday Compared with 1928, when there wore 47 flax strippers in operation in the Manawatu, to-dny's total is 14, but this is an improvement upon tho figures for the years 1932-33. Well over 200 men are now engaged in the industry, largely through provision by the Unemployment Board of a subsidy of £4 a ton. There is still a considerable amount of flax in tho district and the rise in flax fibre prices to over £2O a ton after the low level of £ll, is welcome, as it will mean added employment and increased business activity.

LONDON MARKETS TALLOW POSITION QUIET The Department of Agriculture has received the following cablegram, dated November 2, from the High Commissioner for New Zealand, London:— Tallow.—The spot market is quiet and values are unchanged. Hemp.—Manila: The market is idle and easier with second-hand sellers., "K" grade, £23 10s. Sisal: The market is quiet and steadier at the close. No. 1 for November-Decetnber shipment sold at £25 15s; January-March shipment sold up to £26 7s 6d. New Zealand: The market is quiet. Orders and offers are scarce. Nominal value on the basis of hitch points is £23. Eggs.—The market is quiet, English: Scarce; prices have advanced. Imported: Slightly easier. English, National pack, ISs 6d to 24s 6d; ordinary .pack, 19s 6d to 21s 6d; Danish, 13s 6d to 15s 6d; Australian, lis to 12s 6d. £eas. —Maples: The market is very quiet. New Zealand: On sample afloat sold at 52s 6d; No. 1 for October-Decem-ber shipment, 53s 9d at close. Sellers offer for November shipments, 535. "A" grade Tasmanian afloat sold at 545. New crop Tasmania for Fobruarv-March shipment offered 50s. New Zealand for March-April shipment 495; buyers' ideas, 2s less. Blues: There is a poor demand. "A" grade Tasmanian for November-December shipment sold at £lO 10s.

NEW PRIVATE COMPANIES The following new private companies have been registered at Auckland:— Master Clothes, Limited, tailors and drapers. Capital, £SOO in shares of £l. Subscribers: W. R. Woods, 495 shares; It. H. Forder, 5 shares. The Rotoiti Transport Company, Limited, service car and transport operators and garage proprietors. Capital, £IOOO in shares of £l. Subscribers; S. Emery, 800 sharps; J. D. Macfarlano and W. Emery, 100 shares.