Untitled

Hokitika Guardian, 18 December 1922, Page 2

The trade conditions within the country show a decided improvement, and the recovery from the slump of 1920-21 has not taken long (says the “Dominion”). It will be remembered that in the second half of 1920 and the first half of 1921 the imports were greatly in excess of exports. Merchandise poured into the country, and this merchandise was bought mostly at peak prices. To meet' their obligations importers had to seek accommodation from tile banks, and the latter made advances to the limit of their resources which led the chairman of the Bank of New Zealand at the annual meeting of shareholders in June last to say: “Our advances in the Dominion are much higher than wo care to see them, and arc justified only by the extreme need of so many of our customers, and by our consciousness that in the great majority of eases it is only a matter of reasonable time for the position to right itself.” That view of the then existing position has been fully justified by the conditions now ruling. Several sections of trade have quite recovered—the soft goods trade for instance, is said to be in a healthy state. Wholesalers and retailers are generally getting into sound positions, the only "oak spots at the moment I>eing some farmers and farming concerns. However, it is anticipated that the better prices ruling for primary products and the better general outlook, most of these concerns will get hack on to their j feet. The hanking returns for the cur- j rent quarter should show a- very much i improved position. There should lie a i further contraction of advances as com- j pared with a year ago, and deposits should show some growth. According to - wholesalers, collections are boing roftcjp. without difijcnlty, hut, of pouysp.

great care is being exercised in giving credit.