DOMINION TRADE

Hokitika Guardian, 14 June 1930, Page 2

DOMINION TRADE

MONTHLY REVIEW

The Government Statistician has issued the following monthly review of business statistics for April:—

If judged on the volume of bank den its to individual accounts (excluding Government accounts.) business during April would appears to have been extraordinarly slack as compared with the preceding month. Ibe adtuai decrease was nearly £5,000,(X J, or 23.2 per cent, while, compared with April, 1020, the turnover was also considerably smaller, the decrease being 1-1.2 per cent. Despite these heavy recessions, evidence that business activity was not at an exceptionallv low level is shown by a comparison with April, 1028, the two totals being practically equal. The conditions ruling for many months past have resulted in a greatlv increased demand for advances from the banks, while deposits have hot been maintained in a similar proportion. In fact, deposits are lower by £1,500,000 than at this time last year, notwithstanding an increase in Government deposits of £‘2,000,1X10, while advances record a rise of £/ ,500,000 The total value of exports for the first four months of the year shows a decrease' of £8.100,000 as compared with 'the dor responding period of 1920. T")"orts declined during the same period by £107,000. An excess of exports of £5,500,000 for the four months is recorded, whereas the average excess for this period for the five preceding years was £10,500.000 Wool is the main contributor to this heavy decline, the value of this commodity ahum receding hy £6,/00.000 during the four-monthly period, end although this recession is mainiy due to lower market values, the position is to a certain extent exaggerated, as fully 30 per cent less wool Ims been exported, and this despite the fact that the quantity of wool produced last season was nrobably a record lor the Dominion. Dairy produce declined by £1,500,000, butter and cheese being equally. responsible; but the position is much worse for the former, as this commodity recorded an increase in quantity exported of 40,000 owt. whereas cheese shows a decrease (138,000 cwt) in quantity as well as value. Improved figures in cheese production should see an impioveinent- in the export figures during the next few months, hut the increase in butter production will no more than offset the heavier decrease in prices received.

DAIRY INDUSTRY

The dairy industry, from the point of view of production, is in a very satisfactory -position: butter records an increase of 18.3 per cent for the nine months over a similar period of last season, while cheese, which for the first eight months trailed behind last season's totals, has now taken the lead, An idea of wliut a favourable season has been experienced is indicated by the fact that the total for 'butter for the Time months past is greater than the total for the whole of last season, the figure for which was the highest ever recorded to that time.

The tonnage of cargo handled during the past month was slightly below hat for March, but is considerably ahead of this time last year. A decliue in building permits is still evident. the total for April, 1930, being well behind that for April, 1929. The decrease is noticeable in new buildings. the mil whew of alterations to existing buildings being on a level with preceding months Auckland has shown a heavy decline for some months, but this month’s figures also record a substantial drop in permits for new buildings in "Wellington.

EXPORTS AND IMPORTS

The declared value of exports for April was exceptionally low, reaching but a total of £3,948,789, a figure 28.3 per cent lower than that for the corresponding month of 1929. and, furthermore, 32.6 per cent below the average for the five preceding years. Although imports during the same month show a clbpline of 14’.4 per cent, the position is not as good as indicated, as the 'figure (for April. 1929. was considerably above the average for this month. The aggregate exports for the first four months of the year record the phenomenal drop of £8,100,000 as compared with a similar total for 1929, and is £5,000,000 lower than the average total for the period for the previous five years Imports have reacted but slowly to the pressure of the prevailing financial conditions, the decline between the two four-monthly periods of 1920 and 1930 being only £107,000, or 0.7 per cent.

Analysis of the heavy drop in the total of exnoi-R n-n wool contributed £6,700,000, cheese £771,000 and butter £729,0)9. Wool shows the extraordinary decline of 51,000.0001 b in quantity, while cheese also shows a recession of 138.000 cwt. Butter, on the other hand, records an increase of 40,000 cwt in the quantity sent forward. There has been a drop in the market value of all three commodities, hut most serious in wool and 'butter, and the importance of this can he gauged from the fact that those two items occupy first and second positions respectively on the list of principal items of export.

BANKING

Bank' deposits placed to the credit of individual accounts (excluding Government accounts) during tin? month of April, 1930, showed a falling-off of