STATE BANKING

Hokitika Guardian, 25 September 1928, Page 3

STATE BANKING

SOUTH AUSTRALIAN RESULTS

MELBOURNE, September 14. As some of the proposals otf the Victorian Government’s Bill for the creation of a Rural Banking -Department of the State Savings Bank resemble those embodied in the constitution of the South Australian State Bank, it is interesting to note the actual results which are being qbtajped by that bank. In the South Australian institution, general banking and Or yd it Fonciei business are conducted in separate departments, which differ widely in operating costs and even more widely in results. The general banking department showed a loss last year (to June 30i according to the bank’s own figures, of £4806, followed by a loss this year of £2719. The Auditor-General, how--;, ever, states after an analysis of the, accounts that the real losses '!or the two years were £5494 and £7525 re-spec-tfvely. The general banking department was operating in June last with a capital of £798,642, loaned by the Treasury (an increase of £423,642 on the previous year’s total), and it had deposits amounting to £195,480, including. 6111,465 in fixed deposits. In the, twelve months to June last the general hank’s advances were increased by £427,839 to £898,287, of which £509,00' was advanced to borrowers in the Malice areas, Eyre’s Peninsula, and the irrigation settlements. Owing to t'w unfavourable season loans to primary producers had to be increased. They were unable even* to pay interest on previous borrowings. The banking department Ims twelve country branches. Five showed a profit for the year, and the renmiriL" h loss. Yet the department is comparatively conservative in the choice o! risks.

In South Australia the public is giver a clear statement on the work of the Ei-edit Fancier department, which era ploys a capital of £1,177.518. It mad advances last year amounting t £107,505, and received £115,006 in repayments. Working at a net outlay e slightly less, than £32,000, the depart ment showed a profit of £24,211). Tb' Auditor-General believes that the profit is under-stated, as a result of the efforts of the General Banking Depart; ment to minimise the actual extent of its losses.