N.Z.’S ECONOMIC CONDITIONS

Hokitika Guardian, 6 July 1927, Page 4

N.Z.’S ECONOMIC CONDITIONS

The lily review of business eonRitiims in Australia and New Zealand, issued by the Alexander Hamilton Institute. states that “the control point of interest in the New Zealand curve of business is that the export index has remained at a stationary low level point for live months. The stay in the downward trend is thus sufficiently decisive to warrant the assumption that export prices generally will begin to improve.” It is claimed that an improvement is due, “and with a rise in the export index it is hut reasonable to expect an improvement in the general economic situation, for it. is lint trite to remark that New Zealand s prosperity is humid up to her export, trade.” It is further slated that ‘‘durjno the months ol Aiarch and .April the general imlexitl business toll to a greater extent, than in any month since the decline in business eommemed. and a general period of lii|tli(hiti in is jit. progress. XotwuthsD.mltng the spectacular display ol horrible hanking averages in the daily Press, the real facts are that the New Zealand hanking situation has gradually improved since the June quarter of best year. Too much credence apparently has been placed on the relative adverse movements of deposits and advances, and not. sit Hi ei*• it t attention given to the decline in mite circulation, and the increase in cash reserves, wliieli, after all. are really of primary importance in the assessment of hank credit.