ATTITUDE OF THE BANKS

Press, Volume L, Issue 15037, 4 August 1914, Page 10

ATTITUDE OF THE BANKS

Speaking of the attitude of the banks doing business in -New Zealand. Mr Beauchamp said: —"I can of course speak only for the Bank.of New Zealand, bat 1 am confident that the other banks transacting business in.this country and elsewhero may be depended upon to do all they legitimately can to assist their clients, both privirte. and public, their respective Governments. •■•....-

"It has been suggested that upon the declaration of war involving England, that thero will bo a general calling up of overdrafts. I would like to scotch that idea at the very outset. "I can assure you'that thero has up to the present been no meeting, no conference of any kind, as between the

banks,.to consider the present position. lo ™y mind to call up overdrafts now, w i j i sheer madness. Obvionslv this would be followed by a catastrophic slump m the values of the various securities held by the banks. It would inevitably precipitate a financial crisis ot magnitude. ♦1. ;I _- m , n ? **> taken for granted that the banks are well secured in respect to tncir advances and no bank Ls likely to wilfuUv depreciate the -value of its own securities. , '' Ifc ! . s ,.°! llv , necessary to refer to the last published banking returns and the latest balance-sheets of the banks themselves to show how strong they are to.lav in resneefc to all kinds of liquid reserves, both, in Australia and in London.-' THE .MONEY IN HAND. *J r Reaucbamp went on to say:— produce of Australia aud New Zealand has been realised, turned into money, an,] t \ ie particularly largo amount of money held by the banks is indicative of tho splendid prices Australasian producers havo received for their exports of primary products. In the ordinary couiso this balance would bo available for transfer from London to the colonies, but I take it that business will be conducted on such conservative lines that there will be no largo transference in the near future. Moreover, there will be such remunerative rates offering for money in London thatmany banks will bo tempted to make the most of them. "Whether F.nglaud is involved in conflict or not. I would strongly urge the people of New Zealand to keep quite cool at the present time. No good purpose can be served by showing nnorehension. Tho feeline in England at tho moment has already been commented upon in most favourable terms by Americans, according to. the Press cb'o messages, and I think that the people of this Dominion, coming -from the same stock, can bo trusted to show the same fine spirit of self-restraint in timo of great anxiety."