FINANCIAL

Hokitika Guardian, 20 June 1933, Page 7

FINANCIAL

economic position. I STATEMENT BY MR J. T. GROSE. WELLINGTON, June 15. “The 'banks In New Zealand are continuing to do their utmost in assisting the Government and the country generally,” s aid Mr J. T. Grose, oh airman (of the Associated Banks at the annual social function of t'he New Zealand Bank Others’ Guild. "They have alforded the Government assistance on exceptionally generous 'lines in spite of the inequitable taxation which is imposed on them. "It is but just to state here,” said Mr Grose, "‘that the Government has recently passed legislation permitting the banks to deduct from their taxable income, bad debts actually written off, a -relief 'long (sought' and hitherto denied, though it has always been enjoyed by other trading companies. It is hoped that Ifurther legislation will be passed to put the banks on the same footing for income tax purposes ns other trading companies so that “ Hank’s taxable income will be its actua] income and not an arbitrarily -arrived at fictitioug income os is the cas© at present.

ADVANCES AND DEPOSITS. “Ranks 'also continue to assist the commercial, industrial, and particularly the farming and pastoral life of theDominion. as far as is consistent with sound finance. At* an indication of how the depression has restricted banking business -and business generally, I may mention that, compared with three years ago bank advances have fallen by about £8,000,000. That is withouttalcing into account Government finance, which does not come under the heading of advances. Bank deposits have decreased by more than £1,000.000. the increase in fixed deposits, however, being about £6,000,000. It might seem on the .face of it that the banks are drawing into their shells, but that is -not the case. The banks are as anxious na ever to tafford as much assistance a,s they have it in their -power to afford. That the banks of this country have not flinched or faltered in these unprecedented times is due to their prudent and careful trading and foresight in time's of prosperity.”

CHAOTIC CONDITIONS. Since they had last met, he said, another year of (unrelenting depression 'had pnssedj 'and they were now m the middle of the fourth year, but he still firmly believed that here was no reason to become disheartened or lose hope. They in New Zealand were not in. a portion '"to »play*aAyugreat par£, in questions of magnitude, but they must live within the national income, the real purchasing power of which had been narrowed by forces beyond their control. The people must keep their heads. The chaotic conditions such as were being experienced were bound to produce a crop of unsound and meretricious schemes and would-be palliatives, and it wag perhaps only natural that people weighted with adversity and weary with care were only too eager to clutch at straws, hut they would be well advised to leave such things alone. “Tinkering with the currency has never saved any country, but lias brought many into trouble,” said Mr Grose, “and devices for dealing in credit on anything hut sound and tested business lines are likely to do incalculable mischief.” j