COMMONWEALTH BANK

Sun (Auckland), Volume III, Issue 649, 29 April 1929, Page 9

COMMONWEALTH BANK

NEW YORK AGENCY TO BE CLOSED REGRET AND SURPRISE (Australian and N.Z. Press Association) Reed. 9 a.m. NEW XORK, Sunday. A brief announcement among the newspaper financial notices, that the Commonwealth Agency Bank here would be discontinued after July 10, came as a distinct surprise, and was received with considerable regret. It is realised here that unquestionably the principal reason for opening the agency was for the purpose of arranging Australian financing here, a secondary purpose being the develop- i ment of general banking business for foreign trade. There has been no Australian financing here during the past year, due to the general condition of the credit situation. However, this is not peculiar to Australia, but has affected all foreign borrowers. The money tightness, moreover, is expected to continue for at least another six months, while some experts even decline to set any time for the duration of this extraordinary situation. The feeling is that the Commonwealth Agency has, however, played an important role from an international point of view—that is has been an important trade factor. For instance, there has been a new development of Australian hardwood export here last year, and that the closing of its doors is unfortunate. It is believed that the particular date chosen for the closing is due to the fact that the agency would have needed to seek new premises on June 30. The part that the money situation is playing in the closing has been well considered here. Financial circles are particularly arrested by the fact that the various internal issues, floated in Australia, have been so successful and of such good terms that the whole question of Australia’s going into foreign markets may require reconsideration. Those particularly familiar with Australian banking conditions, however, ask whether a more basic and less apparent reason for the withdrawal of the Commonwealth Bank from New York is the fact that there is some impending change in the Australian banking situation as a whole —namely, that there is some possibility that the Commonwealth Bank may become the central bank for Australia in all senses of the word, and under the circumstances the propriety of the latter competing in the general banking business abroad with other Australian banks is being considered. It is expected that although the agency is being shut, the appointment of a representative here will not be overlooked.