BANKING PROBLEMS

New Zealand Herald, Volume LXXIV, Issue 22694, 5 April 1937, Page 5

BANKING PROBLEMS

CONDITIONS IN DOMINION THE GUARANTEED PRICE METHOD OF TAXATION , LONDON, April 2 Addressing shareholders at the annual meeting of the Bank of Australasia, Mr. F. Y r . C. LivingstonoLearmouth, who presided, referred with satisfaction to the higher prices of wool and meat. The substantial relief in taxation was encouraging to enterprise in Australia. If trade expansion had been met by a corresponding increase in currency the balance-sheet figures would probably have shown an increase, but the authorities, apprehensivo of a boom, apparently were anxious to avoid inflation. As a result, while the bank's funds enabled it to meet legitimate demands, advances for speculation were checked.

Mr. Livingstone-Learmouth endorsed the advice of the Commonwealth advisers in London thai it would be unwise to seek loans in Britain at present. He added that tho New Zealand Government's laudable desire to better living conditions had led to experiments which should be fully explored before they were developed. It was difficult to see how tho price paid to producers could bo artificially maintained above world prices without creating unbearable taxation burdens and raising internal prices to a level counteracting the advantages to producers. Tho banks hope to receive morq equitable treatment from the present Labour Government in New Zealand than from its predecessors in the matter of taxation. The inequity of the present method, levied on hypothetical profits, was admitted by more than one National Government, but it had not been remedied. The banks were nowpromised that the authorities would investigate the matter.

Details of the bank's accounts were published in the Herald on March 25. CABLE AND WIRELESS CAPITAL RECONSTRUCTION HEAVY WRITING DOWN PLANNED LONDON", April 2 Preliminary details of a long-awaited capital reduction scheme by Cable and Wireless, Limited, indicate a cut of £22,588,000 in ordinary capital. It is proposed to write down the A and B ordinary shares from £29,471',000 to £6,883,000. They will be amalgamated in one stock, each holder of A ordinary shares to receive £3O sterling nominally in respect of each 100 shares held. Holders of B shares are to receive £7 10s nominally. New 4 per cent cumulative funded income stock is to be issued to preference shareholders to satisfy 21 months arrears on preference shares.

The City editor of the Times considers the' Dominion Governments cannot fail to bo impressed by the board's energetic policy to pave the way to a solution of its other problems.

Cable and Wireless, Limited, a merger which operates the cable and wireless services, was originally Imperial and International Communications, Limited. The name was changed in 1934 when Cables and Wireless, Limited, the original holding company, became Cable and Wireless (Holding), Limited. The investing public is more directly concerned with Cable and Wireless (Holding), Limited, for it is the securities of this company which the public holds. Tho holding company derives its income in the form of dividends from the Marconi, the Eastern, the Eastern Extension, Australasia and China and the Western Telegraph companies. These companies in turn receive their revenue in tho form of dividends from Cable and Wireless, Limited (to which they transferred their communications assets), interest receipts on investments and, in the case of the Marconi company, profits from manufacturing and _ other interests. The great undertaking had tho misfortune to come into existence at the peak of the boom in 1929, and it was early realised that the capital was too great. No dividends have yet been paid by Cable and Wireless, Limited, on the £20,734,964 7i per cent non-cumulative A, or the £8,682,122 B ordinary stocks.

FOREIGN EXCHANGES FLUCTUATIONS IN LONDON (Received April 4, 5.5 p.m.) British Wireless . RUGBY, April 3 The following rates on foreign exchanges were current yesterday, compared with the cabled quotations on

(Received April 4, 6.5 p.m.) LONDON, April 3 On the foreign exchange market today the following quotations ruled: — New York, 4.89$ dollars; Paris, 1062 francs; Batavia, 8.90| guilders. 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 On demand .. 3.02 s /, 3.02% T.T 3.02% 3.01% On demand .. 3.97% 8.9G l / a The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations.

CUSTOMS EXCHANGE RATES Rates of exchange ruling at the announced dates of departure of vessels named are shown in the following table. They are subject to confirmation by the Customs Department when tlio exact time of departure is learned. Finally declared rates uro marked*: Australind, America, dollars .. .. *4.80 Australind, Canada, dollars .. .. *4.80 Wairuna, America, dollars .. .. *4.88 Aorangi, America, dollars .. .. 4.88 Aorangi, Canada, dollars .. .. 4.88 City of Brisbane, America, dollars .. 4.88 City of Brisbane, Canada, dollars .. 4.50

April 1 and par: — April 2 April 1 Par Montreal, dol. .. 4.88 i y 19 4.897a 4.SGG New York, dol. 4.S0%« 4.807 » ioo7s 4.80 Paris, fr. 106 y. 105.00 Brussels, belga.. •29.05% 20.00/a 35.00 Geneva, fr. 21.47 21.48 25.22 Amsterdam, gr. 8.03% 8.03% 12.10 Milan, lire 08 Vis 02'7 ia 1)2.00 Berlin, r.m. 12.17 12.17% 20.43 Stockholm, kr... 10.BO/a 10.307. ' 22,10 18.159 Copenhagen, kr. 22.40 18.150 Oslo, kr. 10.00 10.00 18.150 Vienna, sch. '20% '20% 31.585 Prague,, kr. 140% 1407„ 104.25 Helsingfors, mark 2 , J{j'/a 'nay, 103.23 Madrid, pes. .. . 55t 55+ 25.221 Lisbon, cscu. . • 1107,, lio7« .110 Athens, dr. 547Va 5177 375.00 Bucharest, lei... 607% ooi Yi 813.0 Rio do Janeiro, m. 4%d' 30/ad 47 d* 5.890d Montevideo, dol. 80%d* Rid Bombay, rupee.. 3 8'/ a d la'/od 18d Shanghai, dol... 14 l %jd 14 l 7 32 d — Hongkong, dol. 14 1 yiod ' 14 1 7iod 24.5Rd Yokohama, yen 14(1 14 d Batavia, gr. 8.00 8.00 12.10 Belgrade, din.. . 213 213 270.31 43.38 Warsaw, zloty.. 25.75 25.75 tNominal. * Sellers.-

is as follows: — t Present Price Par s d s d London, pound . '24 10.05 20 0.00 Australia, pound . "1!) 10.81 'JO 0.00 Fiji, pound . . 22 5.00 120 0.00 Now York, dollar 5 1.00 4 1,31 Montreal, dollar r> i.(i5 1.31 I'uris, franc . . 0 2.83 0 . 2.28 Berlin, rcichsmark 2 o.r>:>. 0 1 1.74 J .22 Copenhagen, krone i I .an . 1 5.41 Yokohama, yea 2 0.58