OUR FINANCES

Dominion, Volume 12, Issue 103, 25 January 1919, Page 7

OUR FINANCES

A REASSURING STATEMENT fIDIMIftWO «P rmirc imiiomnn .

- OPINIONS OF THE MINISTER . . BETTER THAN AUSTRALIA Following upon tho statenient'on the finances of the-Commonwealth made by Mr. • Watt some- -days ago, the Acting-Minister of Finance/ (the Hon. A. M.- Myers)' has thought it desirable that lie should have a little - to', say, about finance in -Now' Zealand. He said' at : the- outset : that- for obvious reasons lie did/hot wish'-to-have , any thing to' say auout the. financial position in ;Australia.' "To anyone who lias studied 1 closely the financial and -.economic policy ol' the Commonwealth," ' remarked Mr. Myers," -."the 'statement made by the Federal "Treasurer «t'the Conference of Federal and State: Ministers cbmes as no surprise." [ " In regard, however, to tho'financial ' . and economic position.of New Zealand, Mr. .Myere said "that he could with - every , coiifidenqo p^iiit'.to the conditions existing jin. tlio Dominion at the 'present' time as being thoroughly sound.... "As disclosed by tho banking • returns published recently," said the Minister, "tho fixed and free deposits of the banks operating in New Zealand - 'were at December, 31, 1918/ ho less than £35,000,000, 1 as compared with a sum at the end of 1913 of £22,800.000. '' The: volume of advances at the-end of. 1913 showed an increase'over tli6se.;at. the c105e..0f"1913 0f.£10,000,000, In the year 1918 the .'.excess of deposits over advances amounted to nearly £2,000,000. '■" . • •' ~ ■ "Turning to the. amount , tb the credit.of.depositors.iii the'government -'and- private savings- banks, tlio; com- \ parison-is equally satisfactory, .such amount at . trio end of 1914 being ' £19,250,000.. as against £33,,000,000 in' 1918, the number, of. depositors increasing. duringj the peridd in quostjon from '541,000 to .660,000, and '.the deposits per' head from £35 10s. to £50.

' ! 1 'Ono must' also,' of doiirsej- rfefer, to i the note circulation of the Dominion during-the-period 1913 to 1918,". continued Mr. 5 Myers, "and which'shows \ an incfeaSe'"iti"'tlie "five"'years of . some £3,000,000, now amounting to £6,760,0(X)j including all -legal tender .notes -held -by-the banks (this item totals about, £1,300,000).. Against the • paper ' the' banks hold in coin . and bullion some. £8,100,000, an -increase on the 1913 holdings of over. £4,000,000." '_ 'Comparing''"Australian' •figures 'ill this "-'respect, the "Minister : stated' that' the Commonwealth - note circulation at September'3o, 1918, was £55,390.000, with a < gold-backing of • about £20,000,000, -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,OOOjOOO".' ■ : v:, "As is known, our accumulated 'stir-- • pluses of.''£ll-500;000 to . March ;31 last .are invested in London, and are avail-, able at fairly .short'notice," comment- . *.-ed Mr. Myers.-. "Owing- to wise precautions taken .by-. ■ the -Minister' _ of- ■ ■ Finance,- conversions oi 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 alfeady been : subscribedb.y ,>New'"Zealandersj the interest on' which, is now assifming laig-e proportions. Although the permanent charges - • are-mounting up rapidly, one feels safe in - asserting that,: with the assurance , of a- stable and progressiva Govern-;-.ineiit and,'increased.'production by all ■ - ■classes of workers, there, is evbj'y reason to look'with confidence, to..the fu-.' ture. ; The Imjerial purchase of wool, • meat, butter"; and cheese having no#" been definiteljf.;fixed lintilrjune, 1920,". \continued ..the.-..Minister, "is another' factor making for economic stability,' whilst-tlie,shipping.outlook-is improving from week to week."

' . Mr. flyers 'made reference to . the forthcoming-final Victory ; Loan and to the fnot'that the Treasury is open to receive subscriptions 'now and' at' any time towards rtlie sum yet to -be raised on account of war expenses still running' on; "It should' always- be remembered," remarked' the• Minister, "that our present -affluent"position is due to the unprecedented -demand by the Mother Country for our primary products, and 1 the recent victorious conclusion of the war should be a spur to us- in" showing : that"the spirit r which sustained the Empire - during tho conflict still .continues to animate the people. Money is not now" less 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 necessary with the larger subscriptions. In ft word,' to save everythingpossible and lend freely to the Government is the clear and imperative duty" of all patriotic citizens':" ' '• :