BANKS AND THE SLUMP.

Manawatu Herald, Volume XLIII, Issue 2359, 24 November 1921, Page 2

BANKS AND THE SLUMP.

Speaking on’the Budget, Mr Edward Newman, M.P., said: —“I desire to say that, in my opinion, this country was fortunate in having the banks in such a good financial position at the beginning of the present slump; they have done their best to help the people of the Dominion to get through these most troublous times. The fact that they had to find money for innumerable merchants who had goods landing here, and could not lift them until the bills of lading were met, and who were assisted by the banks to the extent of millions more than was expected, shows that the banks did good service. 1 believe their policy was sound, and they did their best for the community as a whole during this crisis. The Budget makes clear one cause, at all events, of what is known as the ‘slump.’ In referring to the Customs Department it says: ‘lt will be noted that during the last financial year the value of imports has, for the first time in many years, exceeded that of our exports, and to the extent of over £19,000,000.’ When to this you add the loss that has taken place in stock, as 1 pointed out a few days ago—a loss of about £1 per head on twenty-four million sheep, £lO per head on two and a quarter million cattle, and'about £2O per bale on six hundred thousand bales of wool—you soon get an explanation of why we had a slump. The marvel is that we stood it as well as we did; but the recuperative power of the country is wonderful. 1 have not the slightest doubt that we have got over the worst of the trouble.”