THE FINANCIAL OUTLOOK.

Patea Mail, Volume IX, Issue 1112, 14 November 1883, Page 2

THE FINANCIAL OUTLOOK.

Some remarks made at the recent meeting of shareholders in the Bank of New Zealand by the Chairman, the Hon James Williamson, are worth noting. He thinks we must look for a continuance of a tight money market for at least another six months, although he admits that the causes which have led us into our present state of financial depression are slowly disappearing. This latter assurance, coming from such a high authority in financial circles, is a consolation, although we should like to have been told that our troubles were vanishing with celerity instead of slowly. But the tone of the hon gentleman’s remarks is hopeful in the extreme. He alludes to the favourable outlook for both agricultural and pastoral pursuits, and the enhanced prices that are likely to rule during the coming season, a prediction that we hope to see borne out to the full. A recovery in the price of wool, however, is much wanted, the English market being lower now than it has been for .the last fifty years. Especially has the reduction been felt in low class wools, and graziers no doubt will not be long in taking steps to remedy this defect. There is another reason why we have had a tight money market in this colony, and that is the extraordinary demand for money in Australia. Mr Williamson does not mention this in his speech, bnt we are assured on very good authority that large sums have been sent from New Zealand for investment on the “other side.” Seven per cent, in Australia is better than seven per cent, in New Zealand, because there is no property tax in the former country, and capitalists, therefore, save nearly a half per cent. The tide will turn again before long, we hope, although there seems a commercial crisis in the Home country that may have a paralysing effect on the movements of capital for a time. About the accommodation given by banks to their customers, Mr Williamson made a few remarks, which showed that in spite of assertions to the contrary, advances had grown considerably. According to the returns “the advances in 1882 were two millions and a-half greater than in the like quarter of the previous year; and at the same period of the current year there was a further increase of nearly £700,000. Engagements by the constituents of the various banks had been incurred, which rendered an exceptionally liberal policy necessary to enable them to meet these engagements, and it is apparent from the figures I have quoted that such a policy was generally adopted. It was impossible that increase in such a ratio could be continued, and this, in some appears to be interpreted to mean that all accommodation has ceased.” This must be regarded as conclusive that the j

banks have done their best to meet the demands npon them, although to many people it may have appeared that the contrary had been the case.