COMPANY MEETING
THE STANDARD BANK OF SOUTH AFRICA
FURTHER PROGRESS SIR SAMUEL WILSON'S REVIEW THE one hundred and twenty-fourth ordinary general meeting of the Standard Bank of South Africa Ltd. was held on July 21 at Southern House, London, E.C.
Brig.-General Sir Samuel H. Wilson, G.C.M.G., who presided, in the course of his speech said : Owing to the continued improve- ment that has taken place in the general economic conditions pre- vailing in South Africa recoveries have been made in respect of some of the doubtful accounts for which it was considered advisable to make provision in the past ; and the reserve fund has been increased to £3,000,0o0 by the transfer of £50o,000 from the Con- tingencies Account, thus restoring to the reserve fund the major part of the amount of £664,170 which it was deemed expedient to transfer from it to the Contingencies Account in the year 1932.
The Deposit, Current and other Accounts now stand at just under £66,000,000, being an increase of eight millions on the figures for last year. Drafts outstanding and Acceptances under Credits have risen by approximately £500,000, and Customers' Bills, &c., for collection by about £1,300,000. Bills Discounted and Advances to Customers and other accounts show a rise of just under £7,00o,00o.
After making an appropriation to Contingencies Account there is a balance of profit for the year of £556,587, as against £477,535 at March 31st, 1936. Including the amount of £142,705 brought forward from the previous year there remained for disposal the sum of £699,292. The interim dividend paid in January last absorbed £125,000, and after appropriating £75,000 to writing down bank premises there is a balance of £499,292. It is recommended that £125,000 be allocated to the Officers' Pension Fund, that a final dividend of 5s. per share be paid, together with a bonus of 4s. per share, making a total of 14 per cent. for the year, and that £149,292 be carried forward. The bonus recommended represents an increase of 2S. per share on that paid in respect of the previous year. I am sure that you will_ be satisfied with the strength of the bank's position as disclosed by the figures,
ECONOMIC CONDITIONS.
The remarkable degree of prosperity attained by the Union in 1935 was maintained during the year under review, and it is evident that the country remains relatively one of the most prosperous in the world. As in previous years, the continued economic progress of South Africa is attributable largely to the added strength of the gold mining industry resulting from the curreUcY.Premium on gold, the retention of which was, in some measure, ensured by the tri-partite currency agreement reached between Britain, France and the United States of America. Although the significance to South Africa of the agreement in question lies chiefly in its relation to the gold mining industry, it should not be overlooked that the success which has attended its working may encourage expansion in overseas markets upon which Union exporters of farm and other pioducts are largely dependent.
In its contributions during the year to the welfare of the Union, both directly and indirectly, in the form of taxation, dividends, stores purchased and wages, the gold mining industry has main- tained its position as the pivot of the country's financial progress, and it would be difficult to over-estimate the stimulus it has imparted to industrial and commercial life in South Africa.
As you all know,, there have recently been wide fluctuations in the shares of gold mining companies which would appear to have been in a great measure due to public expressions of ,opinion which have cast doubt on the part which gold plays, and is destined to play, in the economic life of the world. The resulting uncertainty has naturally caused some hesitation in putting into force some projected plans for expansion in the mining industry, but signs are not lacking that confidence is being restored, and there appears to be no reason to believe that there has been any serious change in the fundamental conditions upon which the economic welfare of the
Union is based. • ' -
The welcome general improvement in world commodity price levels during the year materially strengthened the position of the agricultural industry ; other export industries had also benefited from the more favourable Conditions prevailing overseas. Notwith- standing the rise in production costs, industrial activity idthe Union developed - materially- during the year, which was marked -by the
establishment of many new factories and undertakings. The, ry recorded remark- able expansion of the L-nilding industecorded in 1935 was main- mined and interest again centred "at-Johannesburg, where the value of building plans passed during 1936 amounted to nearly to million pounds, as against about six and three-quarter Millions in the previous year.
The report and accounts were unanimously adopted, and a resolu- tion was passed approving the establishment of a Provident Fund for the Asian employees of the bank.
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