BANKING RESULTS

New Zealand Herald, Volume LXXV, Issue 23205, 26 November 1938, Page 11

BANKING RESULTS

NEW SOUTH WALES (YEAR PROFIT SLIGHTLY INCREASED DEPOSITS EXCEED £100,000,000 An increase of £4593 in net profit to £547,835 is shown in the accounts of the Bank of New South Wales for the year ended September 30, which wero presented at the annual meeting of proprietors in Sydney yesterday. The fourth and final quarter's dividend of 6s a share in Australian currency has already been announced. The distribution makes tho year's payment unchanged at 6 per cent. This absorbs £526,800, leaving £166,977 to bo carried forward, against £145,942 brought in. Tho report shows that the bank has now 898 branches and agencies, against 850 a year ago. Included in tho new branches opened during the year was ono in Dunrdin and one at Wadang, in the Mandated Territory of New Guinea. During tho year Mr. E. T. Thring resigned from his position as a director. His place was temporarily filled by tho Hon. Sir Frederick Tout, who was available for re-election.

Bank Celebrates 121st Year "" Discussing tho bank's results for tho year in moving the adoption of the report, Mr. R. W. Gillespie, president of tho bank, said they were that day commemorating the 121st year of the existence of the bank, and the first occasion in its history when the total deposits at the annual balance had exceeded £100,000,000. a record of which they could all feel proud. Part of the increase in deposits during the jear was due to special movements in some of the bank's large accounts, but the increase none the less could be taken as a general indication of the growth of the business of the bank. Total liquid assets stood o _ J?* £31,449,000, a figure some £4,187,000 less than last year. Assistance to Customers

The movement in liquid assets had been brought about entirely by the assistance that the bank had been called upon to render to its customers in helping them to meet the effects or the recent widespread drought and the severe falls in the prices of their main exports. The reduced income of exporting industries did not affect those industries alone, but spread its influence throughout the _ community. The directors felt that it was the responsibility of the bank to use its resources to mitigate these movements as far as it had the power to do so. The expansion of over £8,000,000 in advances to £88,740,000 was the measure or tho assistance which. tiiey had been able to render to their customers to offset the effects of the extensive drought and the falls in the prices of exports. •

UNDER-SEA TRENCH ATLANTIC CABLES BURIED VALUABLE SAFETY MEASURE One of the most interesting experiments in the . history of submarine cable-laying was successfully concluded a short time ago, when the .British cable ship Lord Kelvin put into port after burying large sections of two ot the Western Union Telegraph Company's transatlantic cables. A great obstacle to the success of a submarine telegraph service is the damage caused by trawlers to such sections of the cable as pass over well-frequented fishing grounds. Breakages iu, the cables are costly to mend, and it has been estimated that three of the cable companies have together spent an average of £IOOO a week for the last 10 years in repairing trawler breakages. During the last four years extejisive experiments have been made by the Lord Kelvin with a method ol ploughing-in the cables to a depth varying from 6in. to 22m. These experiments have been so successful that the buried cable is considered safe from any undesirable interference short oi an upheaval of the sea-bed_ itself. Two out of the company's eight transatlantic cables have had_ their vulnerable sections ploughed in across the extensive hake-fishing grounds, which lie several hundred miles ott the British coast, and work will soon be started on the remainder; a ]ob that will take about two years to accomAs ii result of the cable ship's work interruptions which were formerly constant in a 2600 letters-a-minute se t~ vice have now entirely disappeared. The nine-ton plough which outs the furrow and lays the cable is of Bntisn construction; and it is hoped to improve the apparatus so that the ™ bl ° may be buried to a depth oi «Jbin.. making it reasonably safe, from enemy interference in time of war.

AUSTRALIAN INVESTMENT EFFECTS OF RECENT DROUGHT Reference to the drought in Victoria was made by the chairman of the Melbourne Stock Exchange, Mr. W. Forster Woods, in his address to members recently at their annual meeting. "The drought." he said, "must affect us all, directly and indirectly. Income must suffer. Federal taxation must increase, because wo must create armaments in the hope of preventing war. Mr. Woods added that Australians should not close their eyes to tho_ eliect which all the storm and stress in the world would have upon tho Commonwealth. WHEAT, FLOUR AND SUGAR - LONDON. Nov. 24 Wheat.— Cargoes are steady and parcels aro firmer. Fhtures.—London: November, 22s lOd a quarter; Maiv?h, 22s 7.1 d. Liverpool: Old contract December, 4s 6Jd a cental; March, 4s Old; Mav, 4s 6Jd; new- contract, March, 4s 3gd; May, 4s 4J (I Hour, easier. Australian, ex store, 20s 6d to 21s 6d. Raw sugar, beetroot basis, os IOJd a cwt.

Recent Results Compared The bank's results for the past three years compare as follows:— 193G 1937 Brt. forward £119,096 £129,500 Not profit . . 470,454 543,242 1938 £145.942 517.835 £590,450 £672,742 Dividend— Rato p.c. p.a. 5Va G Amount . 400,950 520,800 £693,777 G 526.800 Car. forward £129,500 £145,942 £16G,977 Movements in the balance-sheet items compare as follows: — LIABILITIES £ Variation £ Noto circulation 81,326 -9Q, Doposits .. 100,257,842 +4.381,095 Bills payable, etc. 8,154,482 -167,694 Capital .. 8,780.000 Same Reserve .. 6.150.000 Same P. and L. account 298,677 +21.035 Contingent (per contra) .. ~~ 3,341,674 —315,829 assets Cash . .. 14,376.076 -2,270,152 Funds in London 715,000 -1,355,000 Treasury bills . 1,155,000 -l.47o.000 Investments . 5,827,075 +601,67J Duo by other banks 1,239,199 +139,3-0 Bills receivable, etc. 8.137,352 +1/-.-42 Reserve B.N.Z. dep. 382.615 +8,704 Advances . . 88,740.010 +8,1G_,.jo3 Premises . 3,150.000 +250.000 Customers' O1 . eoo liabilities 3,341,674 3lo,829