BUSINESS OUTLOOK

Nelson Evening Mail, Volume LXIII, 13 July 1929, Page 3

BUSINESS OUTLOOK

A HEALTHIER TONE THE BANKING POSITION According to the monthly review in the ■ latest “Abstract of. Statistics,” the national volume of business in May as indicated by the debts to iii.dividu.'tl accounts in the banks oi issue showed «• substantially higher level than Hint recorded in May, 1928. High deposit figures still characterise the banking situation; and marked activity continues in both branches of the mortgage business, particularly in the liquidation of indebtedness. Prices show a slight up"ward movement since April. The aggregate debits to individual accounts in the banks of issue for the four weeks ended 27th Alay, showed a recession of 3.56 per cent, from the figure for April, and again of 11.54 per. cent, over that for May last year. Deposits reflect the favourable balance of trade of recent months, arid are running on a level approximately £4,000,000 above that for the corresponding period last year. • The latest figures show that tho seasonal contraction in the winter months has . commenced. Non-interest-bearing deposits are approximately £1,000,000 below what they were at the end of April while those bearing interest have increased by approximately £300,000. Compared with figures at the end of Alay, 1928, non-interest-bearing, deposits show an Increase of . approximately £700,000 against an advance of £2,300,000 in those, bearing interest. In common with tbe debits, the aggregate debts due to -the banks reflect an improvement' in tlio volume of business.; tlio figure at the end of May shows an increase of just over £2,000,000 or 4.76 per cent, over that at the end of Bray, 1928, as compared with an increase of 5.63 per cent, in the deposits, exclusive of Government business. This relative lag in tlio advances is reflected in the ratio of advances to deposits, which stood at 82.73 per cent, at the end of Alay, 1928, but now stands at 80.68 per cent. ■Seasonal activity was recorded for real-estate transactions in May. Judging by the registered values of land transfers, the volume of business showed a, gain of 36.6 per cent, over April, and a drop of 3.4 per cent, below Alay, 1928. Cumulative five-montblv totals reveal a level of business for the current year 7.8 per .cent, above that for 1928, while twelve-monthly moving totals show a gain this year of 3.2 per cent. ‘ : The registered mortgage business, which largely represents part of tlic purchase consideration of property sales, showed gains in Alay of 27.6 per cent, and 16.6 per cent.- over April, 1929, and May, 1928, respectively. The volume of business for the five months shows an advance of 19.0 per cent., while moving twelve-monthly totals show a gain of 6.3 per cent. Mortgages discharged are generally regarded as fairly good indicators of tlio spending-power available. The figures for Alay reflect market activity in this branch’of business, showing increases of 23.2 per-cent. and 28.5 per cent, over Alay, 1928, and April, 1929, respectively. Increases of 15.1 per cent, and 9.7 per cent, are disclosed by cumulative five-monthly figures arid moving , tWelve-mdiitldy totals respectively. 7