WELLINGTON NEWS

Hokitika Guardian, 28 December 1927, Page 1

WELLINGTON NEWS

THE CLOSING YEAR

(Special to “ Guardian ”.)

WELLINGTON, Dec. 24. The passing of 1927 will scarcely he regretted lor it has been a year of adversity lor a great many people. In Jan nary, before 1927 was manv da vs olds. Mr 11. Ruclcleton. General Manager ol the Rank of New Zealand, predicted that we were in for lean times, and said that at least the indications pointed that way, and in any ease he thought we were due for it. and he was right. Mr Buekleton had no need to guess, for lie must have known from his knowledge of the fi ■ nancial standing of hundreds of business houses and commercial concerns that affairs were not what they should ho. At that time the country was over importing, that is we were buying more than we wore selling, and to pay for these increased purchases the hanks were heavily drawn upon for accommodation. The position as far as the hanks were concerned called for action, and in May last the hanks raised their rates 'by lOn per cent for deposits and advances. The action of the hanks called forth much criticism and many complaints, hut subsequent events i justifid the hanks. The higher cost of loan money forced the trading community to review the position. Tinports were immediately cut down, economies were effected in many directions and real efforts were made to reduce overhead charges, aiid gradually it was discovered that the overseas trade position was recovering, with the result that at the end of the produce year, that is September 39 last, the excess of imports over exports was reduced to £147,951, while iu the pievious year the excess amounted to the substantial sum of £3.208.030.

The improvement has since continued, and if prices hold and traders continue to exercise prudence and economy, the balance of trade in 1928 should he well in our favour. I uomploymcnt, as we all know, was a serious problem of the year, and many thousands of pounds had to he spent in providing wot k for the workless. Tt- is not surprising that under such conditions there was no scope lor sating. The Post- Office Savings Bank returns furnish a good indication of the thrift of the people, and the return for the year ended September 30 show that the deposits were not quite £28.000.000, while in the previous year they exceeded £30.000,(XX), while the ‘withdrawals amounted to £30.000,000 against £31.000.000. The withdrawals for the year exceeded the deposits by the lingo sum of £2.850.000. while in the previous year the excess was £902,000. A great many people had to draw upon past savings to meet living expenses.

NEW ZEALAND WOOL MARKET. With, the close oT the Dunedin sale on Monday. December 19. the wool sales in the Dominion for 192. were brought io an end. and Hie movements iu value, for the two mouths h.i\c not. been such as to cause any alarm ns to. the immediate future. \ allies have not been so high as at the opening sale in Wellington, hut prices at (hat. sale were more or less inllatcd, because buyers were in pressing need of supplies to meet immediate requirements and were not particular as to fractional advance in price.

Apparently urgent requii'metits were I’ll ltil in the North Island. lor at tin' Christchurch sale on November ffi) there was a recession in values. Since then however prices have remained steady, at least for crossbred descriptions.’ and the market should bold in the New Year. Heavy weights of wool will he reaching Knrope during the next few weeks, and the financing of this wool must cause some nnv'iotv. There is little use expecting wool to go higher, at the same time there does not appear to he an> recession in rallies. There must o! course he some fluctuations, lmt generally prices should hold.

rt is stated that leers in consuming centres have found it impossible to pass on to tlio ultimate consumer the last rise. This is a stereotyped complaint and has been heard again and again whenever wool prices showed an upward tendency, vet users havenot been deterred from buying the raw material anil paying the higher prices. Wool has now a world-wide demand, and it should be singular if the demand contracted simultaneously in all consuming centre.*. In T'gb wool received its main support from France, and in 1027 from Germany. Bradford lias held olf the market for the past two years, not from choice but from force of circumstances. Owing to high costs of production Bradford has been unable to compete with Continental manufacturers in world markets, but Bradford is facing tbe po-ition and will soon overcome all difficulties.