TRADE AND FINANCE

Hokitika Guardian, 9 July 1931, Page 2

TRADE AND FINANCE

POSITION 'N THE f OMINIOM.

BANKING POSITION. / The general impression gained from the most important of the monthly indexes is that the pulse oi business remained lairly steady during May. says the Government Statistician in the Monthly Abstract. Since January when conditions were exceptionally low,, the volume of bank debits placed to individual customers' accounts (exclusive of Government accounts) has remained fairly consistent. The movement i,n bank debits during May was very slight, but .the figures are such as to indicate a comparatively low level of business activity. However, the volume of bank debits placed to individual customers’ accounts fell by only 0.7 per cent, from the previous month, and, considering that the customary winter restriction of internal trade must by now be well in evidence, this wavering of the indicator of business prosperity upon a consistent level during recent months may be regardtie as a favourable indication.

Deposits during the month remained at very much the same level ns in tin previous month, but compared with May, 1930, record a shrinkage equivalent to 6.8 per cent. Advances nisi show a slight decrease, amounting ti 1,8 per cent, for the month and 2.6 per cent, for the year. A further alight improvement in the ratio of advances to deposits was experienced, and this movement has been continuous npw since November Inst. The improved position of tbe export outlook; should tend to accelerate this trend in coming months. The ratio o ! free to fixed deposits for the month however, shows little response to the favourable influences being gradually brought to bear upon the financial situation, and actually records a further diminution from 56.08 per cent, for April to 54.74 per cent, for May, 1931 In May 1930, this ratio was as liigf as 76.10 per cent.

Land' transfers registered during the month of May were 39.3 per cent, be low May, 1930, but compared with April showed the usual advance. This however, was only 29.9 per cent, whereas the average gain recorded foi the four preceding years was 47.1 per cent., A comparison of the total for two months of the financial year with the corresponding period of the preceding year gives a recession of 39.8 per cent.

The number o' 1 mortgages registered during May was 48 per cent, lower thar that recorded twelve months earlier, while discharges show a fall of 45.6 per cent. The cumulative tdtnls for the months show registrations 45.7 per cent and discharges 48.6 per cent, behind last year’s figures,