COMPANY MEETINGS
THE UNION BANK OF AUSTRALIA CONDITIONS IN THE COMMONWEALTH SIR JOHN DAVIDSON'S ADDRESS THE annual meeting of the Union Bank of Australia, Limited, was held on January 30th in London.
Major-Gen. Sir John Davidson, the chairman, said that the increasing cost of salaries, largely imposed by statute, referred to last year, continued and would show a further increase in the current year. In Australia, there had been an increase of 15 per cent. in Federal Income-tax rates, and in New Zealand the taxes in the past year had absorbed virtually the whole of the profits derived from their operations in that Dominion. There was some hope that during the coming session of the New Zealand Parliament there might be adopted some change in the system of taxation of the banks. He calculated that for the current year the total taxes to be paid by the bank would amount to no less than a quarter of a million pounds, which was greater than the net dividend they distributed.
Last year he drew attention to the need for caution and to certain factors which gave cause for reflection. These factors, which included the war in the Far East, political entanglements in Europe, and trade restrictions, were still present and in some degree had been accentuated during the past year. The warfare in the Far East had resulted in a diminished demand for Australian primary pro- ducts, more especially wool. Stocks of wool in consuming countries were by no means excessive and there had been little or no carry- over at the sales, so that the position in this respect was favourable should general conditions improve. Dairy produce had been satis- factory during the year.
In New Zealand, the Government, faced with two alternatives, a depreciation of the currency or exchange control, had adopted the latter and the experiment was being followed in this country with sympathetic interest but with some anxiety. As in Australia, the Bank's advances in New Zealand had shown a substantial increase and for similar reasons.
The report was unanimously adopted.
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