PROFIT SLIGHTLY LOWER

Taranaki Daily News, 2 December 1933, Page 11

PROFIT SLIGHTLY LOWER

BANK OF NEW SOUTH WALES SHAREHOLDERS’ ANNUAL MEETING. “LEGISLATIVE RESTRICTIONS.” The report of the directors of the Bank of New South Wales for the year ended September 30, presented at the annual meeting in Sydney this week, states that the net profits, after payment of taxation amounting to £254,217 (as against £289,038 last year), and other provisions, were £439,616, a decrease of £23,351 on the previous year. To the profit is added the undivided balance at September 30, 1932, £114,980, making £554,596 available. Interim dividends at the rate of 5s a share, Australian currency, were paid for the first, second and third quarters, absorbing £329,250. The meeting approved the directors recommendation to pay a dividend for the fourth quarter of 5s a share, requiring £109,750. This leaves £115,596 to be carried forward. The dividend is payable at the head office,. Sydney, to-day, and at branches on receipt of advice. Following is a comparison of the bank’s results and appropriations for the last three ■years:— 1>931 1982 1933 Brought forward £166,9’28 £112,968 £114,980 Net profits .... 565,235 462,967 489,616 £732,168 £575,930 £ 554,596 Dividend, p.c. 8 5’4 5 Amount. .... *619,200 460,950 439,000 Carried forward £112,963 £114,930 £115,596 ♦ Including first quarterly dividend on new capital issued to shareholders -of the Australian Bank of Commerce, which was absorbed by the Bank of New South Wales. PRESIDENT’S ADDRESS. Moving the adoption of the accounts the chairman and president of the bank, Mr. T. Buckland, said the countries in which the bank operated were still suffering from the depression which commenced in 1929. There were, however, signs of the beginnings of slow recovery, which he fervently hoped would continue and accelerate. The rise in wool prices was most encouraging, but they must look for substantial rises over the whole range of exportable products before recovery was accepted as assured. Remembering that and also that the first duty of the bank was to give all the assistance possible toward bringing about recovery and a return of prosperity to the people, the figures of the balancesheet and accounts, ha said, could be viewed with satisfaction. A detailed review of the balance-sheet figures was given by the president, BRITAIN’S AGRICULTURAL POLICY. After discussing events relating to the World Economic Conference, Mr. Buckland referred to the new agricultural policy of Great Britain, which seemed to have taken a lead from Continental Europe. There could be no criticism of the desire of the British people to guard their agricultural industries, but Britons should not overlook the fact that, should the development of- their agricultural policy reach a point at which they would wish to exclude to any extent the Dominions’ exportable products from the British market, they must automatically reduce the Dominions’ capacity to buy British manufactures. It would be possible even to destroy it. A policy of high protection to agriculture in the thicklypopulated countries of the Old World was becoming as great a bar to progress as excessive protection of manufactures in the young countries, and seemed less excusable. The success of the Premiers’ Plan in Australia was also commented upon by Mr. Buckland. Its outstanding achievement was the regaining of control of Australian currency. It was somewhat alarming to find that at the first sign of improvement some of the Governments, led by the Federal Government, were proposing increases in Governmental costs. Taxation still took far too large a proportion of the earnings of business enterprises and the incomes of private people. NEED TO RESTORE CONFIDENCE. To assist in meeting the first onset of the crisis in Australia, the people were willing that Governments should by special legislation attempt to protect the unfortunate and give time to allow existing contracts to be readjusted in the light of changed conditions brought about by the crisis. That legislation in most instances took the form of interference with contracts between mortgagors and mortgagees, landlord and tenant, and devised plans for debt adjustments and control of interest rates. “Legislative measures cannot discriminate,” said Mr. Buckland, “and experience has shown that these measures have created as many new injustices as they sought to solve. They have created an uncertainty as to the future which has crippled investment and business in many directions, and it is high time that our Parliaments now took in hand the removal of interferences and restrictions in an attempt to restore confidence and open again the channels of investment and enterprise. What is needed above everything at this stage of the crisis is scope and freedom to venture in the full security that our Parliaments will sturdily refuse again to invade this field.” THE EXCHANGE RATE. The question of the exchange rate was so vital to the Australian economic problem, Mr. Buckland continued, that he could not omit it from a general review of the Australian position. The aim of all Government and financial policy'in Australia should be to provide a stable money; to provide a currency unit enabling the organisex- to enter upon the expansion of existing businesses and the development of new ones in the full confidence that his calculations and estimates would not be upset by marked changes in its purchasing power or, in other words, in the Australian price level.

“We should, therefore, look forward to the management of tire exchange rate being directed to this end,” proceeded Mr. Buckland. “There should be no alteration in that rate unless and until there has been such a marked and general alteration, not only in sterling, but in gold prices, for our exportable products, as to restore all efficient enterprises to a profitable basis. On the other hand, should world affairs take a renewed turn for the v/orse and further falls in prices occur, bringing us back face to face with a falling-off in business and employment, we should expect a movement upward to protect the Australian economy from another experience of the distress brought about by falling prices.” UNEMPLOYMENT REDUCED. In touching upon the improved position in the wool market, Mr. Buckland drew attention to what he described as “a regrettable practice” in a selling system as well organised as the Australian, of selling wool at the shed, which had been a feature of the wool sales this season. The reason seemed to be that growers were in many cases badly in need of ready money, which under the auction sales system they would not obtain for some weeks or months. And, secondly, they wanted to take advantage

of the higher prices, in the fear that they might collapse. There had been a most noticeable and pleasing reduction in unemployment during the year. The figures given by reporting trade unions had fallen from 30 per cent, in the June quarter of 1932 to 25.1 per cent, in the September quarter of this year, which was lower than the 25.8 per cent, shown for the March quarter of 1931. In conclusion, Mr. Buckland emphasised the dependence of Australia and New Zealand upon their exporting industries and as a corollary to that, their dependence upon seasons. The latter was an influence beyond control, but much that was within control could be done to protect their industries by means of the development of trade treaties with other countries. The president added that during the five years of crisis and depression the bank had made remarkable progress, and he wished tp extend to the staff the meed of praise that was due to them for their responsibility in that achievement.