The Hokitika Guardian WEDNESDAY, OCT. 12th, 1921. BANKING RETURNS.

Hokitika Guardian, 12 October 1921, Page 2

The Hokitika Guardian WEDNESDAY, OCT. 12th, 1921. BANKING RETURNS.

The change that lias taken place during tlig past twelve months in monetary conditions in Now Zealand, a change from a plethora of funds fo a ilt-i'Vd shortage, makes the latest hank return figures, says the Lyttelton 'fillies. particularly interesting. A year ago the hanks had niii excess of deposits of £14,113,886 and three months ago the position had changed over to an axcoss advances of £B,874,392. It, is, therefore, very gratifying to find that the latest quarter shows n sntisartory measure of improvement. Advances are still in excess of deposits, but the excess is now £4,593,948 which is a, reduction of £4.280,444 on the preceding quarter. This is brought about by tlie improvement in our balance of trade, chiefly by the reduction in importations. During the twelve months ended March 31 last imports exceeded exporta in pneli qunrt.sr, the aggregate excess be-

ing £19,2192,27, but for the five months, April to August, there was an excess of exports of £1,097,030, which figure is fairly close to the improvement shown in the bunking returns. The total of the two classes of private deposits has decreased £2,065,431. in the quarter, hut advance's ami discounts together have decreased £6,345, 875. The note circulation exhibits a contraction of £717,409, but £327,407 of this is in tlie amounts hold amongst tbo banks. Covernment deposits are much reduced anil t-ho other items do not call for comment. Comparing the latest figures with tin' corresponding period of previous years the year shows n reduction of practically ten millions, |,Ht there is only af decline of two mil. lions as compared with the figures for two years ago. The movements are practically in the free class, as the fixed deposits show a quiet steady growth from year to year. Advances exhibit n decrease of six millions ill the latest quarter, is still nine millions ahead of a .vqar ago. This is chiefly due to the heavy increase in importation. hut also to farmers requiring more acoimimodation owing to reduced values of wool and other produce. The current quarter will witness fairly heavy calls for assistance from the producers. hut against this, importations are on a much lower scale. The excess of advances; the decrease in deposits and the increase in advances in the latest year mean a reduction in the funds held by the banks of £lß.i J/,834. However, as stated above, the position is decidedly better than was tlie ease three months ago. Wo can hardly look for further improvement in the current quarter as this is the time of the year when the producers’ requiements are heaviest. Following are ho deposits and advances wifli each bank

Bank of X./. Union Bank Bank of N.S.W Bank of Australasia

Deposits. Advances

20,823,388 22,075.697 4,932.063 0,063,159 5,452,510 5,260,957

Insia 3,818.244 5,776.799 National Bank ... 7,506,277 8,100.663 Commercial Bank 889,181 761.763 ’flic Bank of New South Wales and Commercial Bank are the silly ones having mi excess of deposits, and each hank shares in the decrease in deposits and increase in advances. The decrease in metal holdings is light and not of much significance. The decrease in note circulation is largely i due to the decrease ill the holdings of , other hanks’ notes by the various hanks. The actual circulation aft> j deducting this item is £6,491,841 as compared with £0,881.893 in the previous quarter. The decrease is comparatively light and probably indicates partly a reduced spending power and partly a, reduction in prices of goods. Oil the whole the position is fairly satisfactory. Money is still very short, | hut there is a good recovery in the past three months. It. will probably he some time lie lore matters right themselves, and this depends largely oil the markets for the coming season’s produe*. j Tuk County Council had before it yesterday the question of determining main roads within the County. There is the accepted idea that the main loads arc the arterial roads, hut the Counties’ Act appears to recognise the main roads as the chief or utility roads of the district, carrying the main portion of the public traffic. Of late years the nature of the tariff has been (banging and tlie local bodies, and tbs' public for that, matter have not quite prepared for the change. The swiiter means of transit, by motor vehicles lor both commercial and industrial pur-.' poses, have imposed on the roads much greater wear and tear. A greater vollime, of expenditure is necessary to on- : sure tin- more efficient upkeep of the roads. Probably if the local bodies have been slow to realise their lia- j bilities in the. matter, the motor proprietors of hath public and private pleasure and trading vehicles arc not ready to recognise their responsibilities either. ’['lie motor proprietor looks for good roads with out any offer of payment. ltoads which in former times sufficed for local traffic, will not now early the shifter and heavier trafiio of the motor system. Yet it is not fair to saddle the increased cost on the ratepayer alone. The motor man using the roads to a greater extent than the settler or aver, afo resident, must he prepared to hear a share id’ the cost. The local body’s difficulty is to decide what roads should ho treated as main roads, and instead of making their maintenance a charge on tin- immediate district, place them in a category where they will he a charge against tlie general revenue of (In- Council. In this way the cost will before equitably spread. It is another matter of course to seek for extra revenue from the motorists. So far no sntisaetory means of public taxation lias been arrived at to solve the matter to suit all the parties. But must come. j Thf. County Council took the final plunge yesterday and decided to cross the Rubicon, in the matter of tlie purchase of a motor-tipping lorry. Earlier in the meting the Council met the lorry proprietors, the heavy traffic of whose machines Have caused abnormal expenditure of fate, The Chairman

(Mr AVni'd) dealt with the, deputation very tactfully, and as an. outcome of the ccnference the motor lorry proprietors agreed to contribute each five pounds per month as a voluntary contribution towards the upkeep of the roads. This extra finance no doubt influenced the minds of tlie Councillors later when after a short hut sharp discussion in which quite a, little heat was shown, the decisive step of procuring a. motor-tipping lorry was taken. The type decided upon is the four wheel drive, with a hydraulic tip attachment. This class of machine it was mutually agreed upon was the most suitable for local requirements. In the discussion with the saw mi Hers, some of the deputation made it plain that a, tipping lorry was essential to get material on t,:> the roads in the required quantity. Tim horse and dray system was held to he too slow -quite out of date and far too lastly. The opinions expressed in that direction wore very free, and doubtless greatly influenced the members. Tbo Council, it was explained, would pay for the machine out of revenue, and it wad held that its nso would result in considerable saving. The opposition to the purchase was on the grounds that the lorry would he too expensive to run, and that it "bnld ho used Tilrgoly in one portion of the County. This latter contention was contested, and when n final rote was taken Jt-he motion was agreed to by six til two. one councillor being absent in Wellington. Tlie Council has now taken a definite step which it is believed and certainly hoped will he one entirely in the direction of material progress.

ANOTiiF.it important matter the local body had liefore it yesterday was the fmwtry policy as foreshadowed by the Forests Bill. The day previously the sawmillers were considering their po tiun hndcr the proposed measure, so that it appears likely the position in respect to this district will he put fairly before the mcihbers of Parliament, before the measure is adopted. From the local body point of view the most important "aspect is the conservation of its revenue" from the natural resources of tlio district. Tim timber has stood hero for a number of years, ami was regarded always as an asset! for the future to help local government dischargo its functions. Among the resolutions adopted liy the Council yesterday was a motion seeking to safeguard its revenue interests. There wns a further motion carried also asking for tho machinery to secure to the Council the revenue of the past which it is held has not been paid to the local body. On a former occasion upwards of £2,000 were paid to the Council in connection with matters in dispute. A further sum; is said to be owing, and it is to adjust this important differente that machinery legislation is now asked for. The Council further made tlie reason, able request that the local bodies

should have representation on proposed Advisory Board to be constituted under the Forests Act. This scorns very reasonable under all tlie circumstances. The Council in the remaining resolutions seeks to have timber milling and local body interests safeguarded iit such a way that the industry will not be menaced nor the income of the Council imperilled. These safeguards are certainly warranted if all one hears about the forestry policy lie oorre- ■ and it is to be hoped/ that the reasonable requests will be given effect to.