The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JANUARY 13, 1928. THE FINANCIAL BAROMETER.

Hokitika Guardian, 13 January 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JANUARY 13, 1928. THE FINANCIAL BAROMETER.

Tub banking returns for the quarterly periods supply .something of a check on the Dominion timliteial position, and indicate to a considerable degree the trend of business, goverited as it is by the Volume of financial trading. It is pleasing to know that the bankreturns for the December quarter show steady improvement in the bunking business of the Dominion, a result very gratifying A message from Wellington .summarising the general outlook as a result of a study of the figures goes on to remark that the banking returns for the December quarter reflect the recovery in our trading position and show an improvement of some £3.000,099 on the position of it yoilf ago Advances have been reduced £1,500.090 in the year and deposits have increased by a similar amount This is a very welcome improvement, but the public aie still leaning fairly heavily on the banks, and further improvement is n >eded. However, the export season lias made a very good start, and me realisations coining in will reple i.sb the banks’ (-offers in the current and following quarters. 'Flic figures now under review show thu usual sea 'on.'ii calls for funds, hut there is only a moderate increase of £-15" 1 26 in the public’.* net indebtedness 1 lie tanks as compared with the Septemi-er quarter. After the lean period which has gone by, this is encouraging as indicating the ability to recover some of the finaueai drift. The Dominion has been through a period ill whie:i exports declined and importation >■ as maintained, resulting in imports being in excess of exports for sime tune, and the banks were called upon to finance the deficiency, .’'lie Datic balance lias only just recover'd, and, for the year ended November 30 last our exports were £1,507,724 in excess of our imports. The full effect of a change in the trade balance does not show up in the bank re ".ins till a little later, consequently we do l-ot. see tbe full recovery In the figures now under review, but i. will come later. Importers are, apparently, still keeping a tighter rein on j.'.ire lasing abroad, and we may exiiect to see imports kept down to a reasonable level For some time. On tlie other hand, we are practically mmi red of a realty good export .-on-tv, the wool outlook i.s particularly cheerful, dairy produce has increased production and somewhat better prices, and the outlook for meat i.s fairly good. We may, therefore, expect a good big return for our season’s exports, which will fully replenish the hanks' eofieis. As shown above, the pc; tn n is

i£3,000.000 bettor than a .'.oar ago. anti this i; only the start n. the improvement due to decrei. ■ 1 linpoitation. The returns from experts are still to come into account, and at the end of the current year we should see a vastly improved financial position On the whole, therefore, the outlook is distinctly good. ft is well to have this brighter side disclosed > t a when there is an obvious stringency in regard to employment. One way of meeting that difficulty will be by the creation of more local funds to assist development. It would be better infinitely if this accruing money were devoted to internal developments rather than that it should 'frittered away in paying for imports, and the money going definitely out of the country. By internal development work, the money is not Tost to The Dominion. Tts use for employment and material, means an increased circulation which benefits a wide range of traders, and assures a remarkable degree of trade. The economic side of the picture is thus revealed, and it is that which is a special aid to our Dominioni prosperity. Finance is an intricate, ns it is a delicate, commodity hearing on prosperity. The more money which can he used usefulv in the Dominion the better, but it Wild be wjssp fa resulnfa the

spending power so that a little as possible need bp sent out of the country in payment for imports. The policy of supporting New Zealand manufacturers applies strongly under that heading, for it is of obvious value to assist the secondary industries established here, There is Heed, therefore, for more wisdom in regulating the spending power of the people, and in that direction the individual can do a great deal in assisting to retrieve the financial fortune of the Dominion,