The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, NOVEMBER 6, 1930.

Hokitika Guardian, 6 November 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, NOVEMBER 6, 1930.

AS OTHERS SEE US. Naturally the financial fortunes of the Commonwealth and the Dominions are much in the public mind at Home, and there -are many references to the countries in the British press A special issue of the Chamber ol Commerce Journal, London, was issued 1 at the end of September, dealing with Empire martens in relation to the Imperial Conference, and following a general review of the financial issue, went on to pay that i.t was scarcely ppeossary (to reiterate the circumstances that led to a situation in Australia that induced the authorities to invoke the aid of nn English economic expert, Sir Otto Niemeyer. Briefly stated, Australia has suffered, and is suffering, from the high stanlard orfi living encouraged «*by fhe good prices previously ruling for the country’s staple products and the readiness with which loans could he raised in London. With tli9 great fall in prices the artificial character of the position was disclosed, and was accentuated by the groat difficulty in meeting maturing financial dWigations abroad. Happily, Australia showed commendable courage in grappling with a very difficult problem and in adopting the measurqs recommended by Sr Otto Niemcyer. The unsatisfactory position was indicated in prices of the Government loans in London, which fell to a level at which the vield was 6 per cent or more, and for a time there was some irresponsible talk of the possibility of debt repudiation. If Australia carries out a. policy of retrenchment and reform there is no doubt that the Commonwealth will successfully emerge irons its difficulties. The paper was more sympathetic with regard to our own Dominion, and by way of comparison went on to says that to a smaller extent New Zealand has experienced the same troubles as Australia, and also invited Sir Otto Niamey,er to visit the country after the completion of his work in Australia. As a result, the position, in New Zealand has nlway stood high in the London market and there is apparently no necessity for the Dominion to adopt drasstic measures for the purpose of remedying mistakes made in the past. This is comforting and such a clear cut .statement must have been helpful to the Prime Minister in meeting the situation at Home. To further, or rather complete, its review of the financial situation, the Journal made reference to the position of the banking institutions in the Commonwealtn p.nd the Dominion. It said: The twelve leading hanks in Australia and New Zealand have a paid-up capital of £46,608,726, with reserves of £35.336.880. The aggregate deposits at. the end of last year amounted to £367,403,308, showing an increase compared with 1028 of £14,000,000 In regard to this item, there has been, a tendency for some time past for current deposits to diminish, and for fixed deposits to increase. In 1929 the interest-bearing accounts rose £14.288,000. but those not carrying interest declined £0,716,000. Ibis tendency was accentuated last year and, as explained by the chairman ol one of the leading institutions, it is symptomatic of the state of trade and industry which lias prevailed duriir_ r the last two years, 'The same twelve hanks show hills receivable for an aggregate of £47,356,046 an increase for the year of £700,000, while the discounts, loans, advances, etc.. amounted to £311,730,971, an inuense

Oif £14,500,000, and the investments to nearly £40,000,000, the last item showing n decrease of 00,000,000. The cash items, at £17,423,177, were nearly £1,00,000 larger than in 1928. The total assets exceeded £500,000,000, and showed an inerenne of £48.3(X},0T().