THE BALANCE OF TRADE.

Stratford Evening Post, Volume XXVIV, Issue 47, 31 January 1916, Page 4

THE BALANCE OF TRADE.

A Lyttelton Times correspondent inter-j viewed Mr Harold Beaucham'p the' other day and took the opportunity of gleaning the banker's views as to the effect upon our financial structure of the accumulation of credit in New Zealand favor due to the abnormal exports, with restricted imports. This one-sided movement has not disturbed the balance of exchange to any great extent, is Mr Beauchamp's opinion. We have always large balances m Lopdon, and in the meantime we are obviating the transfer of largo sinus from this Dominion to London out of the realisations of our pro- | duce. "One thing that must be remembered," continued Mr Beauchamp, "is that the whole of the Australasian banks are employing thenvery large, funds in London to-day by j the purchase of Treasury bills on which they get a very fine return, the| present rate being 5 per cent, per annum. In this way they are affording incalculable assistance to the Home Government and that point seems to be lost sight of in Australasia. These ( transactions run into millions, and the. Bank of New Zealand is doing this m common with all the other banks iu Australasia, which keep large funds m London in a liquid shape. These 'I ids | have very short currency, namely, three six and nine months, all at the rate of s'per cent, per annum. The Bank of New Zealand right from the ( commencement of the war has played a most important part in assisting the Imperial Government to finance the war, without in any way locking up its capital."