EMPIRE BANKING

New Zealand Herald, Volume LXXIII, Issue 22517, 7 September 1936, Page 5

EMPIRE BANKING

"MARKING TIME" PERIOD A SLOW RECOVERY POLITICAL DEVELOPMENTS In a review of banking in the Empire, the London Times states that the past year may he described as a period in which the Empire banks have marked time. They made a welcome, if modest, recovery from the worst effects of the international trade collapse, but as was generally foreseen, their full emergence from its consequences is proving a long-drawn-out process. In many countries money rates are so low that earning-power is necessarily restricted.

One ' notable exception to the continuance of excessively low money rates is provided by Australia, where, as a result of the combined effect of increasing demands from primary industries and extensive borrowing for Government works, money rates have of recent months shown an upward trend, in all the Empire oversea countries trade, assisted by exchange stability, has given signs of improvement, while South Africa's prosperity has been well maintained.

The newly-formed central reserve banks have come through their initial stages in a satisfactory manner, but the tendency for Liberal or Labour Governments to regard a central bank under private control as a potential obstacle to their political objectives has caused two of the new Empire central banks to undergo radical changes in their constitutions. The new Liberal Government which came into power in Canada last year has taken steps to bring the Bank of Canada under direct Government control by giving the Government a majority of shareholding.

Still more drastic wore the changes instituted by the new Labour Government in New Zealand, for by an amendment, to the Act governing its formation and powers, the general functions of the Reserve Bank of New Zealand were restated as being "to give effect as far as may be to the monetary policy of the Government as communicated to it from time to time by the Minister of Finance." It is strange to find that the views of most financial authorities on the constitution of central banks should be thus disregarded and that central banks should be deliberately drawn into, the orbit of political vagaries. Australia has pursued an opposite policy bv fortifying her central bank against political interference. PRICE OF GOLD YEAR'S LOWEST QUOTATION SILVER MARKET STEADY (Received September 0, 5.5 p.m.) LONDON, Sept. 5 Fine gold is quoted to-day at £6 18s ljd an oz.. compared with £6 18s yesterday, and £6 18s 2Jd on Thursday. Yesterday's quotation was the lowest this year. Silver was quoted yesterday at 19jjd an oz spot, same as on Thursday. The quotation for silver at per fine oz. yostorday was 21 3-lGd, same as on Thursday. NEW COMPANIES REGISTRATIONS IN SOUTH Registration of the following new companies in the South is recorded in the Mercantile Gazette: — PRIVATE R-Kas Products (N.Z.), Limited, manufacturing chemists, Wellington. Capital: £4OOO in 2145 fully paid shares of £1 each and 1855 contributing shares of £1 each. Subscribers: Wellington— Jl-Kas, Limited, 1760 fully paid; F. J. McWhiunie, 40 fully paid, 10 contributing; N. D. Salton, 250 fully paid; J. Cable, 505 contributing; R. H. Williams, 50 fully paid, 25 contributing; R. H. Brewer, 15 fully paid, 25 contributing; W. Cable, 200 contributing, N. B. Black, 50 contributing; A. A. Phelps, 400 contributing; J. T. Haddon, 200 contributing; S. H. Crump, 100 contributing; A. C. Dickson, 200 contributing; H. E. Averv,, 10 fully paid, 40 contributing; 1. Cable, 50 contributing; A. Coleman, 50 contributing; H. E. Baigent, 20 fully paid. PUBLIC Amalgamated Distributors, Limited, Christchurch. Capital: £3OOO in shares of £1 each. Subscribers: Christchurch —J. C. Pairman, 200; H. B. Alleway, 125; E. P. Gill, 1; G. L. Donaldson, 1; 0. C. Parker, 1; L. G. H. Arnold, 1. Auckland: T. A. Felton, 100. Objects: Distributing agencies in respect of Gaddis super steam steriliser and Beldrex patent belt dressing, and incidental. j Finance and Discounts, Limited, Christchurch. Capital: £20,000 in I 15,000 ordinary, #OOO preference shares, j Subscribers: Christchurch —G. R. | Hunter, 200; V. C. Median, 200; E. iW. J. Milton. 200; G. 11. CracroftI Wilson, 200; G. W. Skellerup, 200; N. M. Vincent, 10; E. M. Malley, 10. CANTERBURY MARKETS POTATO DEMAND EASIER

[Bl* TEL EG It AT' U —I'RKSS ASSOCIATION] CH'KISTCIIURCH, Saturday In tho absence of any appreciable demand from tho north the potato market is slightly easier than earlier in the week. No definite news is .vet forthcoming as to whether another shipment will lie made to South America, although the necessary space has been tentatively reserved, and this, too, has influenced the local situation. Meantime prompt whites are worth £4 to £4 5s a ton oil trucks, Dakotas £1 12s 6d, and Suttons Supreme up to £4 10s. The fowl wheat market is quiet at the moment, with prices unchanged at 4s fid a bushel 1'.0.b. The situation regarding oats and chaff is also unchanged, prices being firm at midweek quotations. Peas are still quoted up to 5s a bushel. On the whole, tho small seeds market is firm. Overseas demand for perennial ryegrass has ceased. J lie market for Italian is stagnant. A fair amount of cocksfoot has been offering from growers during the past week or so. but tlie market is quiet and values are 6d to 8d per lb. for undressed seed, according to weight and quality. Cowgrass is'steady at 6d jx>r lb. on trucks, and there is some possibility _of an export market developing for this seed, as reports from overseas are that crops in Britain have been affected bv the very wet summer experienced. White clover is firm at 7(1 to 9d per , lb. on trucks. There was a big carry-over from last, year, which has had a tendency to keep tho market down. Prospects are good for a large crop of clover this spring, the wet autumn and present rains being ideal for its growth. Crested dogstail, Chewings fescue and brown top are all firm, with very little export demand at the moment. Spring sowings generally will doubtless be held up for two or three weeks by rain. Before the rain set in prospect's were for a good sowing of grass in the South Island.