BANKING POSITION

New Zealand Herald, Volume LXXV, Issue 23209, 1 December 1938, Page 9

BANKING POSITION

E., S. AND A. OUTLOOK COUNTERACTING A DECLINE CENTRAL BANK ACTION LONDON,- Nov. 24 A declaration that the banking position was very sound was made, by Mr. S. M. Ward, chairman of the English, Scottish and Australian Bank, Limited, at the 46tli annual meeting. He said it was satisfactory to see that Australia had maintained a high level of economic life. Advices from Australia indicated that the future outlook was not altogether satisfactory, because of the dry seasons and the I all in wheat price. On fchc other band wool prices showed signs of improvement. General trading was satisfactory, but business turnover for the current year was likely to bo lower than in the previous few years. Increased defence expenditure was likely to assist in counteracting the shrinkage elsewhere. Mr. Ward quoted Mr. 11. G. Casey's budget speech, and made reference to the use of Central Bank measures for counteracting the declino in activity. He declared that when measures were necessary the Commonwealth Bank was fully supported by the trading banks. Sir Clive Baillieu, a director, said he hoped that the Government, before acting on the Banking Commission's report, would give consideration to the historical background of Australian banking, which had a proud record. He believed the Government would hesitate before removing elements of freedom and flexibility which were the hallmark and special genius of Anglo-Australian banking. Sir Clive suggested that Central Bank action to counteract a decline might include support for Government loans, an increase in the Central Bank's securities, and a general assurance to the .trading banks, so that tliey maintain cash resources sufficient to sustain a reasonable credit level. Ho thought ho might conclude that the Central Bank was already acting along the lines indicated by Mr. Casey in his budget speech, and added that in the absence of a marked decline in activity abroad there was no reason to anticipate any major Australian investment or employment contraction.

GRAVE WHEAT OUTLOOK CONCERN IN CANADA SHRINKING WORLD MARKETS (Received November 30, 5.5 p.m.) OTTAWA, Nov. 29 Speaking before the Royal Commission which is inquiring into the Dominion's provincial relations, the Premier of Manitoba. Mr. John Bracken, demanded a definite national policy regarding the - increasingly grave world wheat situation.

He asked how Canada could continue to iind markets for two-thirds of its wheat in the. face of the steadily shrinking world markets. If this had been known 30 years ago, Canada would not, have developed half its present wheat acreage. If the present situation was not remedied, about 250,000 farmers might cease growing wheat and seek the dole. If th 3 world did. not take the wheat being grown, Canada should seek a planned arrangement with Australia, the Argentine and the United States for limited production. The alternative was to go on fighting each other for what market was left.

£7236 FOR BOBBY CALVES PAEROA AND HAURAKI PLAINS [liy TELEGRAM! —OWN COHRESPONDENT] PAEROA. Wednesday Balance - sheets released by the National Federation of Co-operative Bobbv Calf Pools reveal that the average pay-out, after taking into consideration the bonus distribution made last week, on. top of the advance payment at the farmgato, for the Paeroa and Hauraki Plains pools was slightly over 6s 11 id. The area includes the Paeroa, Hauraki Plains (excluding Netherton), Hikutaia and Matatoki pools. Some 20,794 calves were handled for 1082 suppliers, and the total cash payment reached £7236,

< LONDON WOOL SALES BEST SORTS SELL WELL November 30, 5.5 p.m.) LONDON, Nov. 20 At the Loudon wool sales to-day 9708 hales wore offered, including 3579 from New Zealand, and 8140 were sold. There was a good selection, mainly Merinos, with active competition. Best descriptions sold well at steady rates. Inferior sorts were frequently withdrawn, owing to high limits. C. J. GREEN'S MONTHLY REPORT

C. J. Orpcn, Limited, stock and sharebroker, reports the following sales to November 30:-- Debentures; Auckland Harbour Board, 4% per cent, 0/7/11, 4101 10s. Government securities: Government bond, 4 per cent, 15/4/40-40, 400 Ids (id; Government inscribed stock, 3 l / a per cent, lfi/1/fi3-.">7, 403 JOsj Government Inscribed stock, :\% per cent, due 15/ 1/53-57, £O3 10s; :i'/ = per cent, 15/1/53*57, 403 12s (id; 3% per cent, November, I 038-52, 408, ex interest, 3y 3 per cant, due November, 1038-52, 4100; 3% per cent, due 15/1 '53-fi7, 4'03 l.fis. Miscellaneous; .Auckland Gas (paid), 1 (is, 18s 1 Od, His, 18s 1 (Jd: Australian Alloys Steel, Os 4d, On 2d. Os Od; Australian Glass, 100,s 8d; 102s, 101s (Id, 1 ()'_'« (id. 100s, 100s, 10.1s (id; Bank of N.Z., >IOB Od ('_>). 41s. 4is (Id. 40s, 42s vid. 42s (0), 4ls Od. 40s 3d; Broken Hill Proprietary, 150s s Vid, 58s, 58s 3d (3), 58s 7d, 58s 3d, 575, 5(Js lOd, oils, 55s Od; con., 30s (id, 4Os 3d; Burns-Philp, 51s Od, 525; Commercial Bank of Aunt., His Od, Ids 7d, Kin 4d <l3), 10s 3d; Dominion Breweries, 35s (id, 335, 32s (id, 30s Od (new ispuo), 32s Od, 31s Od; Electrolytic Zinc, ord., 45s fid, 40s, 40s Hd, 17s Od, 475, 455, 44s Od, 455; pref., 4Ms, 48s 4*/ ad, 40s 4d, 50s 3d, 48b 7d 48s Id; Farmers' Trading, ord., 10s 4d; G. J. Coles, 70s Od, 70s Od, 80s (2), 80s Id, 80s 3d, 70s Od (2); Kauri Timber, 22s 8d; Morts Dock, 12s id; Moturoa Oil, ord, ss; National Bank of N.Z., 50s, 40s. 48s 7(1; N.Z Loan and Mercantile, ordinary stock, ,C'3o; Bobinsons Tcp Cream, 23s Od (2); Taranaki (N.Z.) OillTelds, 13s Bd, 13s 3(1, 13s, 128 (3d, 12s lltl, 12s lOd, 12$ fid (2), 12s Od, 12s lOd, ,12s 2d, 12s sd, 12s Id; Whakatane Papor, ord., -Os 3d, 3s 7d, 3s Od, 3s Kid, 3s Od, 4s, 3s 7d; pref., 8s; Wilsons Portland Cement, 1(53 lOd; "Woolworths Holdings, 15s, Ms lOd; Woolwortha. (N.Z.), 18s lid, 10s fid (4), 20s fid, iiOs (id (2), 10s (Id. 10s (2); Woolworths, Limited, 21a, 20s lOd, 20s Od, 20s 10a; 'Woolworths; Ist pref., 41s (id; Woolworths Properties, pref., 24s Od. Mining) Broken Hill South, 32s fiVJd. 325. 31b B%d (2), 32s 3d, 32s Oil (2), 30s Sd (2). 30s Od, 30s fi'/ad. 28s 44, 28s 3d; Emperor, lis 2d, 11s, lOfKlld; Lolonia, 23s 3d. 23s 4Vid; Martha, 10s 3d, • I.os I'/ad. 10s Od (2); Mount, Lyell, 20s Od, 20s 4a (2), 20s 8d (2), 20s 3d. 28s lOVid, 20s lid, 20s Id, 20s 3d, 20s 2d, 20s Od, 20s 4d, 20s 3d, 20s (id (2), 28s 2d; Mount Morgr.il, 10s 1 Vid, 10s 4d, 10s 3d, 10s Id, 10s (2). Os Od (S), Os 7d; North Brokeu Hill, 6ds (id, sls, fils Od, 50s o'ad, fits Od, 51s Id, 51s 3d (2), fils Od, fils Id, fi2s 3d, 40s (id, 10s 4d, 50s yd. 40s 3d. 48s Od, 4Ss Od, 4Sfi; WHihi Investments, ss 2Vid.