STRIKING FIGURES

Hokitika Guardian, 7 May 1931, Page 3

STRIKING FIGURES

BANK ER GIVKS REASONS FOR OPTIMISM. AUCKLAND, May 1. Striking figures illustrative ol New Zealand’s sound position, despite the croakings of pessimists, were given at a valedictory ceremony by Mr W. J. P. Hodgkins, manager ol the Auckland branch of the Bank of .New South Wales.' 1

*•; nave beep connected , with, the bank for forty-eight years.” said Air Hodgkins, “and during that time have seen j niany; chiiiges.” He; hfirked ! back to 1883, when lie joined the bank. The depression, lie 1 said, was greater then than it had ever been since. In that year they were .suffering Irom cessation of borrowing after Sir Julius Vogel’s lavish expenditure on railways during the preceding ten years Rabbits had obtained possession of the Otago sheep runs, wool was bringing a small prico and “tilings were in a very bad way.” The population at that time was little more than half a million, as compared with close on a million and a ban today. Official bankruptcies in that year totalled 1686, while in 1929 the number was only 687. '1 here was practically nothing to export except wool, and the farmer was selling his sheep at 6d per head. Butter exports were valued at £42,(XX) and frozen meat (in the second year of export) was valued at £118,328, while in 1929 the export value was just on £10,000,000.

BANKING POSITION. The Savings Bank deposits in 1883 amounted to £1,400,009, against £49, 500,000 in 1929. The Government indebtedness was £28,000,(XX), compared with £265.090,000 in 1929.

Dealing with tbe trading banks, Air Hodgkins said that in 1883 the advances of the six banks then operating aggregated just under £15,000.000, arid the deposits were under £9,000,000. Two years ago the advances had increased to over £49,000,000, and the deposits were in excess of £57,500.000. The Bank of New South. Wales in JBB3 made advances amounting to £1,500.000, and its deposits were only £780,000. The canjtal of the bank was then £1,000,000 and the reserve £500,000. At that time half the bank’s capital was invested in New Zealand. This year tbe advances stood at £6,516,129 and the deposits at; £6,175,613. “What we are going through to-day is had enough,” said Air Hodgkins, “but nearly fifty years ago there was very little hope for tbe future. At, the present time wo all realise that when things improve on the other side of the water they will improve in the Dominion. We should not lose heart. We have probably not turned the corner yet. but we are approaching that point, and it behoves us all to keep a stiff upper lip and keep going.”

PREVIOUS DEPRESSIONS. In 1908 1 the country was facet! with a crisis. Wool returned £2,000.000 less than in the previous year and sheen were at a very low price, hut New Zealand got over the hurdle. In 1921 wool dropped by £6,000.000 in value and the country came through that. New Zealand was a good country to live in, and people should not draw a long mouth because they could not see an immediate profit. “Things will come again,” Mr Hodg. kins concluded, amidst applause.