NATIONAL BANK OF NEW ZEALAND

Otago Daily Times, Issue 22659, 26 August 1935, Page 6

NATIONAL BANK OF NEW ZEALAND

BETTER OUTLOOK IN THE DOMINION The sixty-third ordinary general meeting of the National Bank of New Zealand, Ltd., was held in London on July 8. Sir Austin E. Harris (the chairman of the bank) presided. Speaking with regard to the general banking position in the Dominion the chairman said: I will here only refer briefly to* the average deposits and ad-i vances of the trading banks for the March ouarter, which are the best indication. Deposits (excluding Government) were unchanged at £61,100,000, while advances at £43,077,000, as compared with £41,574,000, show an increase of £1,503,000. With regard to deposits, however, it should be noted that the interestbearing deposits showed a comparative decrease of £2,300,000, while free deposits showed an increase of a similar amount. Last year I stated that owing to the heavy surplus of banking and the impossibility of finding a profitable outlet for them, the deposit rates had been reduced shortly before our annual meeting, and in November last a further reduction of i oer cent, all round was made, so that the rates are now:—

The minimum advance rate was reduced by per cent, to 4J per cent, on December 1 last. Dealing with the general outlook, the past year has again been a very difficult one for bankers, and we have been hard put to it to find profitable employment for our funds. The signs of returning confidence, to which I referred at our last meeting, became more apparent during the year, and I am pleased to be able to tell you that trade conditions within the Dominion evince a somewhat more healthy tone, so that we are encouraged to hope that we have seen the worst. However, conditions are still far from normal, and we are not yet out of the wood, Any further substantial improvement would seem to be largely dependent on a corresponding improvement in overseas prices for New Zealand’s primary produce. _As I have already pointed out, wool prices' show an encouraging upward tendency, but prices for dairy produce, although somewhat better, leave plenty of scope for further appreciat'on. It is not for me to deal with world problems of stabilisation, tariffs, and exchange, which are still as acute as ever. It must, however, be a source of great satisfaction to all of us that Great Britain seems to be emerging from her troubles more rapidly than other countries, and any benefits accruing should in due course bo reflected in our j Dominion trade. A balanced Budget, with the possibility of the continuance for some time of satisfactory revenue conditions, encourages us to hope for some relief in the direction of the present burdensome taxation.

A lengthy report o I the meeting of the bank appeared in our commercial columns on August 10 and on August 16 there appeared an analysis of the bank’s balance sheet. . '

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