AUSTRALIAN BANKS

Hokitika Guardian, 16 September 1931, Page 3

AUSTRALIAN BANKS

HELPFUL ATTITUDE. (Australian Press Association.) MELBOURNE, September 15. The prest representatives attending the Premiers’ Conference report that the trading banks agree that they must support the Commonwealth Bank, so as to enable it to give the ‘minimum amount of relief to the Government. This will be done in such a way as not to endanger tlie general financial position. The trading banks are satisfied that the Commonwealth Bank is handling the situation with conspicuous alplity, and is unlikely to cause the slightest embarrassment. It is also Understood that the trading banks hoTd the view that disunity at the present stage pn the part of the banking Institutions .might bring about a disaster. Thus, the banks are prepared to continue to find money for the ordinary 'works, which are estimated to require nine millions, towards which the Commonwealth Bank is prepared to find two and ahalf millions. The banks realise that .it would add materially to the distress of ,the community if all of the public works were /to be (suddenly stopped.

BANK MERGER. SYDNEY, September 15. There was an extraordinary meeting of shareholders to-dav of the Australian Bank of Commerce Ltd., and the Bank of New South Wales. The meeting approved of the proposal for the merger of these banks. CHAIRMAN’S STATEMENT. SYDNEY, September 15. Regarding .the bank merger, the shareholders of both banks authorised the directors by resolution, to take the necessary steps to give effect to the merger. . Sir Mark Sheldon, the Chairman of Directors of the Australian Bank of Commerce, salid that their Board hud not been long in coming to the conclusion to link up with the Bank of (New 'South Wales, realising that there must 'be, for some years, some contraction in the business turnover and the prices generally. Nor did there seem much likelihood of normal : profits being made’ in the usual way. in exchange buiness. The Board, he sa':d, expressed the opinion that there was too much overlapping in the banking facilities, and that the possibilities of expansion in Australia were not at all. reassuring for a /considerable period of ' come. When the Australian Bank of Commerce Board approached the Bank of New South Wales, they found the directors of that institution to be very much of the same opinion as themselves, but, more particularly in regard to the overlapping and the duplication of banking facilities. As the result there had, been a frank exchange of figures, leading up,:to the . basis of the merger, namely, sixty-four thousand t\v en t v-pou nd-ster 1i n g shares in the •Bank of//New South Wales,. ..paid to twenty impounds ' sterling, as the value of the share-holding in the Australian Bank of Commerce Limited. Other directors claimed that the amalgamation would be of as much advantage to the Bank of Commerce as to tKc Bank of New South Wales, Which was one of the strongest financial .institutions.

DIRECTORS SATISFIED

SYDNEY,- September 15

Mr Thomas Bucltland, the President of the Bank of New South Wales, speaking at its shareholders’ meeting, emphasised that the Board of Directors had satisfied itself after due examination of the figures, that the Australian Bank of Commerce had a thoroughly sound business, which was likely to prove a very , valuable adjunct to the Bank of New South Wales.

The shareholders duly authorised the Board to increase the capital of the Bank of New South Wales from £7,500.000 to £8,780,000 by the creation of 65,000 hew/shares of £2O each, and .to issue these as fully paid up for the purpose of a merger.