BANKING RETURNS.

Hauraki Plains Gazette, Volume XXXX, Issue 5487, 14 October 1929, Page 2

BANKING RETURNS.

[Contributed.] What we have we’ll hold” appears to be the attitude of mind of 56 per cent, of the owners of liquid wealth in New Zealand. Such (56 per cent.) is the percentage of money invested at September 30 last on fixed deposit with the commercial banks operating in the Dominion. Investment within the Dominion is evidently not attractive to capital. This betokens a lack of confidence in the development of so young a country. Regarded politically, it is commentary on the fact that after a complete overthrow of the party in power twelve months ago, a change of Government has only succeeded in tightening the hold on the purse-strings of those whose confidence and enterprise is sorely needed. Anticipations of greater prosperity in the year 1929 are revealed in the increasing imports of later months, but since internal trade during the past winter has not realised expectations, the reduction of £2,843,000 in the free deposits discloses a heavy shrinkage when compared with the June quarter. The trade balance, usually adverse spring, is due to the fact that our major products are just beginning to reassert their earning power. Notwithstanding this, it is disturbing to realise that so large a sum as £4,973,000, made up of an increase in advances plus the reduction in free deposits, should be revealed in one quarter’s transactions. Concern should seize the mind of the business world that so large a sum was called for for remittance overseas so early in the earning year of a country where seasonal returns form the staple income. Further, if excessive importation be a cause of the disquieting features that the quarter’s figures show, then attention should be paid to the warning of Sir Harold Beauchamp, that lower prices may be looked for in many of our products. Taken alone, a decline in wool values would so affect internal trade as to depreciate all stocks held beyond the needs of the market. Earnings in business would be reduced ; taxation, ever creeping higher in State and local area, would be more difficult to meet. The need of constant vigilance in State expenditure, the wisdom of individual, thrift, are alike demanded by the careful scrutiny of the quarter’s banking returns.