DOMINION’S FINANCES.

Hokitika Guardian, 30 January 1919, Page 4

DOMINION’S FINANCES.

STATEMENT BY HON A. M

MYERS. CONFIDENCE IN THE FUTURE. Wellington, January 24. Following upon the statement of the finances of the Commonwealth by Mr Watt a few days ago, the ActingMinister of Finance (the Hon A. M. Myers) has thought it wise that lie should make some statement about the finances of this country. He said at the outset that for obvious reasons lie could have nothing to say about the finances of Australia. “To anyone who has studied closely tiie financial and economic policy of the Commonwealth,” remarked Mr Myers, “ the statement made by the Federal Treasurer at the conference of Federal and State Ministers conies as no surprise.’’

In regard, however, to the financial and eccnimic position of New Zealand, Mr Myers said that he could with every confidence point to the conditions existing in the Dominion at the present time as being thoroughly' sound. As disclosed by r the hanking returns published recently, the fixed tied free deposits of the hanks operating in New Zealand were at December 31st, 1918, no less thau 35 millions, as compared with a sum at the end of 1913 of £22,800,000. The volume of advances at the end of 1918 showed an increase over those at the close of 4913 of 10 millions. In the year 19!S the excess of deposits over advances amounted to nearly two millions.

Turning to the amount to the credit of depositors iu the Government unci private savings banks, the comparison was equally satisfactory, such amount at the end of 1914 being 19]: millions, its against 33 millions in 1918, the number of depositors increasing during the period in question from ■541,000 to 000,000, and the deposits per head from £35 10/ to £SO. “One must also, of course, refer to the note circulation of the Domiuion duiiug the period 1913 to 1918,” continued Mr Myers. “ This shows an increase in the five years of some five millions, now amounting to £6,700,000, including all legal tender notes held by the banks (this item totals about £1,300,000). Against tbe paper circulation the banks hold iu coin and bullion some £8,100,000, an increase on t-lie 1913 holdings of over four millions.” Comparing Australian figures in this respect, the Minister informed a “Press” representative that the Commonwealth note ciroulalation at September 30th, 1918, was £55,390,000, with a gold backing of about 20 millions, or about 38 per cent of tbe 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 IJ{? millions to the .'list March last are iuvested in London, and are 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 he borne in mind that war loans to the extent of 42 millions have already been subscribed by New Zealanders, the interest on which is now assuming large proportions. “ Although the permanent charges are mounting up rapidly, one feels safe in asserting that with the assurance of a stable and progressive Government, and increased production 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 making for economic stability, whilst the shipping outlook is improving from week to week. Mr Myers then made reference to the forthcoming Final 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 expeuses still running on. “It should always be remembered,” remarked the Minister, “ that our present aflluent. position is due to the unprecedented demand by the Mother Country for our primary products, aud 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 less necessary than were arms and men during the dark hours of the great struggle. If Hew Zealand is to honour to the fullest extent her financial obligations, small sums are equally necessary with the larger subscriptions; in a word, to save everything possible 1 , aud lend freely to the Government, is the clear and imperative duty of. all patiiotiol citizens.”