EMPIRE BANKING

Taranaki Daily News, 6 September 1935, Page 14

EMPIRE BANKING

FORMING RESERVE CHAIN. SOUTH AFRICAN DIVIDENDS. Events of the past year in the field of Empire banking were in one important respect a natural sequel to those of the previous year, says the London Times. The earlier period had been one of preparation for the final stage m forming a chain of central reserve banks to link the various Empire States together. In the past year these plans came to fruition in the actual creation and opening of reserve banks in New Zealand, Canada and India. The view has been long held by the governor of the Bank of England that such a consummation would prove of 1 lasting benefit to the Empire States as i individual entities and would .at the i same time strengthen the financial and I economic ties between the various parts iof the Empire. Australia and Sputh Africa already possess reserve banks. Recovery has made further progress in the various Empire States, though th 6 rate of recovery has generally been slow. Tn South Africa, however, the pace has been more rapid. There the remarkable prosperity conferred upon the Rand goldmining industry by the high sterling price for gold is stimulating activity, in many other industries and greatly increasing the purchasing power of the community. Apart from the South African banks, which have been able to raise their dividends, no appreciable improvement occurred in the earning power of the overseas Empire trading banks, but indications that the demands of industry for banking accommodation are at length increasing render the outlook for the banks a little more promising. i '