STANDARD BANK OF SOUTH AFRICA
Mr. Robert E. Dickinson's speech at this week's meeting of the Standard Bank of South Africa is a comprehensive survey of the African trading conditions. He made it clear that the moderate fall in profits disclosed in the accounts for the year ended March 31st must be attributed in a general sense to quieter trade in the areas in which the bank operates. Although South Africa has the advantage of a firm foundation for its prosperity in the Rand gold-mining industry, Mr. Dickinson emphasised that conditions were to some extent dependent on external influences ; hence the unsettling effects of international political uncertainties. The volume of commercial and industrial activity in the Union showed, indeed, a substantial decline, the foreign trade figures, including earmarked gold valued at about £21,000,000, falling during 1938 by roughly £29,000,000 to £200,000,000.
He summed up the position by saying that the decline in trading activity was offset to some extent by the con- tinued expansion and undiminished prosperity of the gold- mining industry, but that in business generally the spirit of caution was still in evidence. In view of the dim political prospect, he refrained from venturing a forecast of the current year's results, but it is apparent from the bank's balance-sheet that a substantial increase in the demand for loans could be met without any strain on liquid resources. Until an improvement in world affairs brings about a restoration of confidence, it would obviously be unwise to look for a return of normal business conditions, but, mean- time, shareholders in this bank may rest content in the know- ledge that its operations lie mainly in a country with great natural resources.
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