DOMINION’S TRADE.

Hauraki Plains Gazette, Volume XXXX, Issue 5467, 28 August 1929, Page 3

DOMINION’S TRADE.

A DISTINCT IMPROVEMENT. EXPORTS EXCEED IMPORTS. According to the Department of Industries the , trade of New Zealand for the year ended March 31 last has shown a distinct improvement, and the value received for our products in overseas markets exceeds the returns received for any previous year. This result has had a marked effect upon the economic conditions within the Dominion, especially as the value of imports has been kept down to such an extent that a balance of £11,302,215 can be claimed. For the last ten years this is the highest surplus shown, arid it has given rise to general satisfaction throughout the Dominion. It was .emphasised last year that the overseas trade of New Zealand is probably greater in proportion to total production than in the case of any other country in the world which has passed its initial stage of colonisation and primary development. The surplus referred to is regarded as an economic barometer. This comparison of exports and imports from year to year is therefore most closely watched, and the margin between the value of exports and the cost of imports is followed with the greatest interest. Given a range above £7,000,000, which is usually calculated as required to meet interest and other commitments outside the Dominion -spells prosperity and stability. The bank returns, like the overseas trade returns, reflected the greatly improved trade balance, for both the, favourable balance and the funds available had reached exceptionally, high levels. Other indicators of business conditions also show considerable improvement, and confirm the tendency towards the marked recovery of business activity shown by the above figures. Post Office Savings-bank returns, which became rapidly less favourable during 1927, have now shown steady improvement for more -than a year. For the year ended March 31, 1929, deposits totalled £27,252,381 and withdrawals £28,111,940, being an excess of withdrawals over deposits of £859,-> 559. ,For the previous year, ended March 81, 1928, deposits amounted to £27,611,066. and withdrawals were £30,584,997, an excess of withdrawals over deposits of £2,973,931. These figures show a greatly improved position for the past year, and there are indications that the period of excess withdrawals has come to an end, and that a period of excess deposits will be resumed, for the deposits for the quarter ended March 31, 1929, were £6,908,589 as compared with withdrawals amounting to £6,517,949, an excess of deposits of £390,640.

A further significant feature of recent banking returns, pointing to the fact that there is some distrust shown on the part of potential investors of the conditions of industry in New Zealand, is the exceptionally high proportion of fixed deposits to total deposits. Holders of many have in many cases preferred to place their funds on fixed deposits with the banks, and consequently fixed deposits have reached record figures.