N.Z. EXCHANGE.

Star (Christchurch), Volume LXVI, Issue 20362, 20 July 1934, Page 9

N.Z. EXCHANGE.

Views of Mr W. Downie Stewart.

“ I do not interpret the decision of the Reserve Bank as involving any expression of opinion as to the wisdom or otherwise of the high exchange policy. The Bank has merely decided to recognise the existing state of affairs,” said Mr Downie Stewart in an interview with a “ Post ” representative in Wellington yesterday.

“ The fact is that the Government having vainly waited for eighteen months in the hope that importers would acquiesce in the artificial depreciation of our money, were only too glad to unload so sticky a problem on to the Reserve Bank. It is interesting to contemplate how long we could have gone on in the absence of the Reserve Bank, which was not even in existence when the policy was adopted. “ However, the Bank having appeared on the scene two courses were open. It could decide to fix the rate at a point which would enable importers to do normal business and sell their im- 1 ports in spite of the sales tax and other burdens. But in that case the Government would have had to bear the loss on selling funds at less than what they had cost them. “ The other course was to stabilise the present rate in the belief that if uncertainty is removed the process of adjustment t£> the rate already under way will be completed in a relatively short time, and that importers and consumers would* resign thefnselves to their fate. That course has been adopted. The implications of this are tar-reaching for local bodies and business firms, and. indeed, for the whole community. We have already had to deprive ourselves during the currency of the high exchange of a large volume of imports which we could well afford to buy and which constitute an important element in the wealth and wellbeing of the community. I think when the history of recent events comes to be written and a fuff survey made, not only of short run effects internally, but of the reactions externally on public opinion in our chief market, that it will appear that New Zealand made an unwise decision. But apparently the view of the Reserve Bank was that, having gone so far, we could not turn back.”

Dunedin Opinion. (Special to the “ Star.”) DUNEDIN, July 20. The special announcement that the Reserve Bank will maintain the present rate of exchange created no surprise here, nor has the action of the bank aroused any great controversy among the business community. The attitude appears to be gaining ground that the subject of international finance has gone beyond the grasp of the average man, and along with that impression there appears to be a widespread opinion that the Governor of the Reserve Bank must have had solid grounds for acting as he has. COMPANY AFFAIRS. Dominion Investment and Banking Association. (Special to the •* Star.”) AUCKLAND, July 20. The Dominion Investment and Banking Association shows a net profit for the year ended June 30 of £7586. A dividend of 4 per cent is recommended. E. S. and A. Directorship. (Received July 20. 11.30 a.m.) LONDON, July 19. Sir George Schuster has been appointed a director of the English, Scottish and Australian Bank. National Bank of New Zealand, Ltd. The general manager of the National Bank of New Zealand. Limited, announces pavmcnt on Tulv 21 of a final dividend rt the rate of 4 per cent per annum, free of tax. for the half-year ended The dividend will be payable in New Zealand, at anv branch of the National Bank of New Zealand. Ltd., at current rate of exchange for demand drafts on London on the date of negotiation. As an interim dividend at the rate of 4 per cent per annum, free of tax, was paid in January lasjt, the total dividend for the rear is 4 per cent, which with the exchance added will give the shareholder in New Zealand a return of £4 19s 2d per cent for the year. This Bank shows its capital and reserves as under: Subscribed capital 6,000,000 Paid-up capital 2,000,000 Reserve Fund (invested in Government securities) .. 2,000,000 Reserve liability of shareholders 6,000,000 £10,000,000 In addition there are undivided profits carried forward of £106,41G. In the balance-? heet liquid assets stand at £12,288,000 which are equiva- - lent to 68 per cent or 13s 7d in £ of total liabilities to the public and for every £1 of its own funds the Bank is holding £4 7s 9d of the public’s money which is an exceptionally strong position. National Portland Cement. (Special to the ” Star.”) WESTPORT, July 19. Shareholders in the National Portland 1 Cement Company, in liquidation, are shortly to receive a distribution of £2IOO. which amount is stated to be available after making provision for expenses and contingencies in the termination of the wind!ng-up. Holders of shares paid up to £IOO will apparently receive about £lO. and, as the shares were largely held in Westport, nearly £2OOO should be in circulation amongst local business people at an early date. Trustees, Executors and Agency Co. Per Press Association WELLINGTON. July 19. The Trustees, Executors and Agency Co., Ltd., has advised the Stock Exchange Association that the directors have decided, subject to audit, to' recommend payment of a dividend at the rate of 6 per cent per annum on August 2 for the six months ended June JO. New Registration. The “Mercantile Cassette ” announces the registration of the following local C °W?ns > Badlo (N.Z.), Ltd. Registered as a private company July 14. Office: 196. Hereford Street, Christchurch. Capital: £IOOO into 1000 shares of £1 each of 200 pref. and 800 ord. Subscribers: Christchurch—R. R. Derrett 200 pref.. 100 ord., S. R. Wills 600 old., E. D. Sincoc k 100 ord. Objects: Manu- ' facturers of radios and incidental.