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Hokitika Guardian, 29 October 1920, Page 2

Tire financial reaction which lias been prophesied so often of late, might hit this country sooner than is generally expected. The worlds’ markets are beginning to be at sixes and sevens, and this renders the whole fabjrie very insecure. Tut another phase is being entered upon—the limitation of credit by the banks for trading purposes. This stricture might hasten the arrival of the more difficult financial times, which so often contribute to a general stringency to be felt outside . business and trading circles. On this aspect a Christchurch paper remarks that last week there was a general feeling of uneasiness locally regarding the financial outlook, particularly among merchants, who we being embarrassed by the quantity of goods coming to band from overseas, a great pn|rt of which had not been expected, and largely consists of almost forgotten back orders. It is these heavy importations that is mainly (responsible for the sudden upset in the country’s general finances. Up to

the end of August, the value of impors was roundly thirty-five millions, and it is fairly certain that, for the full year, the value of imports will exceed the value of exports by over ten millions. Now that the Imperial Government commandec' is lifted, and the country is thrown on its own resources to finance .its shipments the financial strain will be severe during the next few' months, particularly so if there is no adequate tonqlage >to djeal with our products Under the general circumstances it >s not to .be w'ondered that the banks are severely criticising advances. This shortening of trade possibilities must re' fleet generally and will have this its influence on the price of commodities