THE COUNTRY'S WEALTH

Dominion, Volume 10, Issue 3118, 23 June 1917, Page 10

THE COUNTRY'S WEALTH

POSITION A STRONG ONE

THE IMPENDING WAR LOAN

MUCH LOANABLE CREDIT

Keferenco lo the ability of the Dominion to subscribe another War Loan from its rapidly increasing resources was made by Mr. Harold ISeauchamp, chairman of directors, at the general meeting of shareholders of-the Bank of New Zealand yesterday.

"The financial position within the Dominion is n strong and improving one. A comparison of tho bank deposits for the March quarter with thoso for tho corTespondin;,' quartor of 1916 (including Government deposits) shows tho following movements:—

March, 1916. March, 1917. Inc. ££ ■ £ Govt. deposits 4,855,939 7,357,113 2,501,180 Free deposits 19,091,919 20,970,702 1,878,753 Fixed deposits' 12,182,104 13,385,83S 1,203,734 36,120,992 41,713,059 5,553,6C7 The greatest increase is in Government deposits, duo no doubt to the incoming of local loan moneys and to the ingathering of the war taxes imposed under the Finance Act, 1916. The growth in the fixed and free deposits is over three millions sterling. These movements evidence the increased prosperity of the country for tho time being, for the Government deposits, as well as tho ordinary deposits, are provided from the earnings of the people. "A better view o£ the deposits position is obtained by comparing the free and fixed deposits for the March quarters of the last four years. The figures are:— March Free Fixed quarter. deposits, deposits. Totals. £ £ £ 1914 13,475,771 10,554,479 24,030,250 1915 15,958,732 10,870,-507 26,829,239 1916 ' 19,091,949 12,182,104 31,274,053 1917 20,970,702 13,385,438 34,350,540 The increases during the past three years have been exceptionally large. The increase shown in 1915 over 1914 was £*,- 795.989; the increase in 1916 over the prewar, year jumped to .£7,243,803, and in 1917- to ,£10,326,290. The total of i'34,351>,510 is the'largest volume of deposits ever before held by the New Zealand banks. "Tho Post Office Savings Bank figures also show an expansion. "There is unquestionably a great deal of loanable, credit in the Dominion, and in view of tho probable oarly issue of another Now Zealand 'SYar Loan, tho financial position, as revealed by the

banking returns is very encouraging. "The Acting-Minister of Finance has already warned the country that tho Government will issue another War Loan as soon as tho necessary authority is obtained from Parliament. Haying regard to tho heavy strain on the financial resources of the Mother Coumtry, it seems :o me to be only right that we should endeavour, within the limits of our resources, to finance our own war expenditure. The objects of the loan must appeal to the patriotism of every section of the community. Mu.ch of the money raised will be disbursed in the Dominion, and a substantial portion will go towards tho siipport of soldiers' relatives livin," here among us. We must, therefore," as loyal subjects of the ' Empire, and as good citizens Zealand, be in favour of the loan, and accord it our sympathy and support. Tho i financial position of the country, to which I have just referred, is such that there can bo no doubt of our ability to provide what is necessary.

"The Earl of Derby. British Minister of War, speaking on the subject of the British 'Victory , War Loan, stressed the point again and again that tho three things necessary to bring the war to a speedy and satisfactory conclusion are men, money, and munitions; and he further specially emphasised that those necessaries are required in the order in which they are stated-money being the first and greatest essential. I am sure, if the people- of this country can bo brought to realise that fact, the fate of our own 'Victory' War Loan will not be in doubt, and it would be gratifying if it were crowned with n success proportionately as groat as that which attended tho 'Victory' Loan of tho Imperial Government, to which over ,£l.000.000,000 were subscribed, an amount exceeding the British Treasurer's most fian.inline estimate by about 50 per cent. Here is a wny in which thoso of us who are incapable of bearing arms and endiirhi!; the fatigues ami hardships of warfare can contribute an essential to victory, and do our part towards the achievement of the indispensable end in the only way passible for us."