DOMINION'S FINANCES.

Press, Volume LV, Issue 16430, 25 January 1919, Page 8

DOMINION'S FINANCES.

STATEMENT BY HON. A. M. MYERS. CONFIDENCE IN THE FUTURE. (SPECIAL TO "THE TRESS.") "WELLINGTON, January 24. Following upon the statement of the finances of the Commonwealth bj Mi Watt a few days ago, the Acting-Min-ister of Finance (the Hon. A. M. Myers) has thought it wise that he should make some statement about the finances of this country. He said at the outset that.for ohvious reasons he could have nothing to say about the finances of Australia. To . an}one who has studied closely the financial and economic policy of the Commonwealth," remarked Mr Myers, "the statement made by the Federal Ireaaurer at the conference of Federal and ouite Ministers comes as no surprise. In regard,. however, to tiie financial and economic position of New Zealand, Mr Myers said that he couid witn every confidence point yto the conditions existing in tlie Dominion at the present time as being thoroughly sound. As disclosed by the banking returns published recently, the fixoci and free deposits of the hanks operating in New Zealand were at December 31st, 1918, no less than 35 millions, as compared with a sum at the end of 1913 of £*22,500,000. The volume of advances at the end of 1918 showed an increase over those at the close of 1913 of 10 millions. In the year 1918 the excess of deposits over advances amounted to nearly two millions. Turning to the amount to the credit of depositors in the Government and private savings banks, the comparison was equally satisfactory, such amount at the end of 1914 being 19J millions, as against 33 millions in 1918, the number of depositors increasing during the period in question from 541,000 to 660,000, and the deposits per head from £35 10s to £50. "One must also, of course, refer to the note circulation of the Dominion during the period 1913 to 1918," continued Mr Myers. "This shows an increase in the five years of some five millions, now amounting to £6,760,000, including all legal tender notes held by the banks (this item totals about £1,300,000). Against the paper circulation the banks hold in coin and bullion some £8,100,000, an increase on the 1913 holdings of over four millions." Comparing Australian figures in this respect, the Minister informed a "Press" representative that the Commonwealth note circulation at September 30th, 1918, was £55,390,000, with a gold backing of about 20 millions, or about 38 per cent, of the paper in circulation.. Legal tender notes held by Australian banks included in the above figure amount to about 35 millions.

"As is known our accumulated surpluses of 11£ millions to the 31st March last are invested in London, and aro available at fairly, short notice," commented Mr Myers. "Owing to wise precautions taken by the Minister of Finance, conversions of loans falling due have been satisfactorily carried out, with the result that during the next five years comparatively small loans only will mature outside New Zealand. It must be borne in mind that war loans to the extent of 42 millions have already boon subscribed by New Zealanders, the interest on which is now assuming large proportions. "Although the permanent . charges nro mounting up rapidly, one feels safe in asserting that with the assurance of a stable and progressiva Government, and increased prouuction by all classes of workers, there is every reason to look with confidence to the future. The fact of the Imperial purchase of wool, meat, butter and cheese having now been definitely -fixed until June, 1920, is another factor leaking for economic stability, whilst the shipping outlook is improving from week to week. Mr Myers then made reference to the forthcoming l<'inal Victory loan, and to the fact that the 'Treasury is open to receive subscriptions now and at any time toward the sum yet to be raised on account of war expenses still running on. "It should always be remembered," remarked the Minister, "that dur present ailluent position is due ha .the unprecedented demand by the Motlief Country for our primary products, arid the recent victorious conclusion of the war should be a spur to us in showing that the spirit which sustained the Empire during the conflict still continues to animate the people. ' Money is not now -loss necessary than were arms and men during the dark hours of the great struggle; If New Zealand is to honour to the fullest extent her financial obligations, small sums are equally nonessary with the larger subscriptions; in a word, to save everything possible, and lend freely to- the Government, is the clear and imperative duty of all patriotic citizens."