BANK OF NEW ZEALAND.

Taihape Daily Times, Issue 219, 9 December 1916, Page 5

BANK OF NEW ZEALAND.

NEW ZEALAND'S FINANCIAL POSITION. PRIMARY INDUSTRIES DISCUSSED Mr. Harold Beuuehainp, chairman of directors of the Bank of New Zealand, in hi s address to the half-yearly meeting of shareholders, held in Wellington yesterday, said:— "I may remark that in this Dominion producers continue to experience a period of phenomenal prosperity, and our staple products are realising prices which, it may be said, have never before been obtained in the history of the country. Since early in 1915, the Dominion 's meat output has been purchased in the interests of the Imperial Government on a fixed and remunerative basis as to prices* and the arrangement has recently been renewed till the end of the War on somewhat more favourable terms to the producer. A portion of the cheese output for the last season was also purchased on behalf of the Home authorities, and arrangements have recently been made to similarly take over the Dominion's wool clip for

the coming season. "Throughout the whole country an exceptionally favourable season has been experienced, and the yield of evry description of produce seems to bo bountiful. The area of land under crop is somewhat restricted this

year owing, to some extent, to the difficulty that is being experienced in obtaining the necessary labour to cultivate the land and harvest the crops and also, in a measure, to the relatively higher prices ranging for meat and wool.

"It is very much to be feared that the high yield for meat is inducing prodigality in the slaughter of stock, and there is reason 10 apprehend that our flocks and herds are being reduced in numbers to such an extent that the adequate sticking of our pasture lands will, in the near future, become a very difficult problem for our farmers. More especially is this remark true in the case of cattle, of which class of stock a more than ordinary number of young beasts are finding their way to the slaughter-house. Lambing has generally been good for the whole country, and ithis, in some measure, will compensate for the excessive drain that lias been taking place upon our, sheep stock,''

''The state of trade and business throughout the country is, on the-whole, good. The excellent prices which have been realised for the past two years for our staple products and the largo expenditure of borrowed money that

is in progress in connection with the training and equipment of our troops for oversea service, have place! the people generally in an easy position in regard to resources, and they are, displaying the usual liberality, if not prodigality, in the expenditure of the abundant funds that they have available. Traders in luxuries, such as jewellery, soft goods, etc.. have been doing exceptionally iwejl. Land and agency business is fairly quiet. The building trade is severely handicapped by the shortage of skilled labour and the high, prices of materials; and operations in this industry are confined mainly to necessary works. ''There is little change to chronicle in the state of the money market. Mortgages still continue to be raised and renewed at rates averaging as a rule 5.' to <i per rent., and the effect of the £8,000.000 local war loan, which the . Government placed on the market on August last, and which was over-Sub-scribed, has not apparently been to harden the market to any appreciable extent, at any rate in the meantime. "The- cost of living is steadily increasing, an,] the high prices to which the necessaries of life have advanced are imposing a heavy burden on the wngo-onvm'u" and small salaried class. Th-' Government, with u view of plaeirfv :> ched; sii the upward tendency of the price of butter sold for the local market, fixed,, by Order-in-Oouncil, the maximum wholesale price at which butter destined to be retailed in the Dominion should be sold: and in order to compensate tmimifaeturers for any loss they may sustain in selling for the local market instead of exporting, a levy at the rate (at present) of three farthings per pound of butter-fat used, was made on all butter and cheese factories, and the issue of a license tjgjgKport was made dependent upon thejpgy- J ment of the levy. The principle Wffi 1 "' f lying the Government's action is important <»ie both to consumers, and its operation as hotter will be watched with infest- "\, " In sympathy with the increasifipnf-JPia, fieulty of living decently and ably at the present time on smalbjgalaties, the Board recently docide|| to , grant to the Bank r s officers a war W™S * of ten per rent, on all salaries|aiot £ exceeding £SOO per annum, draw||fby married men and by single men Mvvho I are burdened witli the support op-lde- Jf pendents. W WM "The Trade Returns of the Dominion \ exhibit a very satisfactory positionSla each of the two complete produce yW rs |T that have passed since the outbrealSbf I Avar there has been a very increase in the values of the Dominiolgs/j exports, as compared with the previoflß"^