The Money Market in New Zealand.

Horowhenua Chronicle, 23 April 1910, Page 4

The Money Market in New Zealand.

A DECIDED IMPROVEMENT. The banking returns for tho fiiat quarter of 1910 reveal a striking recovery in the financial position existing in New Zealand, remarks tho "Trade Review." The heavy demands made upon tho banks in the year 1908 had necessitated tlie bringing in of considerable additional funds by those institutions Otiid even that assistance did not suffice to prevent considerable financial pressure upon the mercantile and trading community. . The expansion of the value of our exports in the season ending on 30th September, 1909, with substantial diminution in the volume of our imports placed matters on an improved footing. We ■are now half-way into the 1909-10 season and tho results, so far, arc extremely satisfactory and productive) of further improvement in financial conditions. Bank advances show in the last twelvemonth a decrease of £2,326,025, whilo private deposits are increased by £2,070,883, a total improvement of £4,390,908. If the comparison be carried back to the end of 1908 the contrast is still more striking, the advances having been reduced in the fifteen months by £3,430,307, and deposits increased by £2,733,709, a difference of £6,11)3,016. The main cause of thus welcome change is the pronounced increase in the value of our oxports, together with the continued restriction in tho scale of our imports. The official returns for tho March quarter are not yet available, but the interim leaflets issued by the Department of Industries and Commerce indicate that the value of exports for the quarter will reach tho high total of £8,500,000. The imports, on the other hand, -are still on a. reduced scale, and the total value is not likely to exceed, if even it attains, the level of last year, say £4,000,000. This would yield tho substantial margin of £4,500,000 of excess of exports over imports. The March quarter always shows an excess of exports, but tho mar,gin on the present occasion is unusually heavy. A big volume of exports is still going forward, and thero is good reason to believe that the results of the -June quarter will also lie satisfactory and helpful to the financial position. As we remarked on a previous occasion wo have reason to believe that tho radical change in the relative volumes of our imports and exports and in their proportion to each other does not constitute the only faotor in 'the striking movements of the bank advances and deposits. Loans to a total of a, million or more were negotiated in the London market during 1909, through the banks, on behalf of various New Zealand local governing bodies. The moneys thus raised have, we believe, affected both advances and deposits. Advances granted in anticipation have been paid off when loans wore raised, and unexpended balances have been lodged on deposit pending completion of works. There'seems, however, it must be admitted, to exist a feeling of want of confidence or absence of enterprise in the dominion which it is not easy to explain, probably the aftermath of the recent financial stringency. Tho improved conditions now existing with further amelioration in view should, before long, bring about healthier and more active conditions.