The Daily News. THURSDAY, JULY 20, 1905. THE FINANCIAL BAROMETER.

Taranaki Daily News, Volume XLVII, Issue 7877, 20 July 1905, Page 2

The Daily News. THURSDAY, JULY 20, 1905. THE FINANCIAL BAROMETER.

OLD AGE PENSIONS.

The quaintly returns of the banks 1 lading in the colony may be well regarded as an index of the state of trade and commerce for any given period. The returns for the June quarter are no exception to the rule, and when compared with those of the corresponding period of last year indicate the existence of a satisfactory condition of progress and prosperity. Deposits show the substantial increase of £615,303, about one-third of which occurs in the free, while the remaining two-thirds is to be found in the fixed deposits. In all probability this increase would have been larger, but for the fall in the rate of interest, which has diverted spare capital into more lucrative channels, such as loans for local municipal reqiiiiemcnts and industrial enterprises. Another striking feature of the returns is the increase on open advances to the extent of £292,8J9. While it is usual to see this upward movement in connection with deposits in the first two quarters of the year, consequent on rcal/sat iou of the produce of the colony for His season, there is for the same reason generally a reduction of advances. The increase on this head for Jhc June quarter of this year is therefore an excellent sign that settlement is proceeding apace, and that the trade of Die colony is expanding most satisfactorily. These figures bear far weightier testimony to the progress of New Zealand than can be 'obtained from any other source, for tbey admit of no denial. Moreover, ittis only necessary to compare the rt'iturns for last quarter under the he.til of discounts and advances with , those of 1903, and it will be seen | that-J he increase this year amounts to ovaT two and a half millions, the intervening years exhibiting a steady augmentation. To realise to the full what .these figures mean it is necessary to bear in mind that the) banks have not by any means relaxed their cautions policy relative to advances and discounts, but, if anything, have been more than ever watchiul over their interests, so that the business done has been of an cntiivly satisfactory nature. This is exhibited by the increase of assets I amountinc to nearly a million, while ] on the oilier side the increase in ItaInJilies consequent on the augmentation of deposits reaches within a measurable distance of one and a half million. The excess of deposits over advances is found to be reduced by £111,6(11. Tins follows naturally as a result of the movements atluded to above, and affords an additional proof that there are legitimate outlets fQf the profitable use of money. The remarkable progress of tile bank of New Zealand is sirn by the fact Hi.-.i of I lie toial incic.»e in advances thai institution is iv.- . sponsible for over one-half, tiie .Union Hank ami Hank of Australasia being llic most conspicuous amongst tire other hanks. While, however, the deposits held by the Hank of New Tie-aland exceed the advances by over three millions, those held by one other hank fall short of the advances by nearly a million, all the other banks having an excess of deposits to a greater or less extent. It would seem thai the money market has reifovered itself, and is now in a favourable condition ; that it may continue so is greatly to he desired. | Tim outlook all round is satisfactory j and is sufficiently bright even to dispel the gloom of the pessimists, while I it paints to additional prosperity j to*, thtf people ol the colony. (

Tim proposal to increase the old age pensions as embodied in the Bill now before I lie House is oirc that should commend itsell generally to the Colony. K'.cry one must admit that since the institution of these pensions th« cost of living has increased, ami lew will be found to argue that i en ten shillings a week is more:., in .sufficient to keep body and soul u>';otber. To raise the pensions to tin-1 amount will take about ; £lo(J,ii:hi, ami we are confident that this v .11 not he grudged by any right thinking person, although there arc many other pressing ■demands which call for recognition. To represent this humane Act as a mere electioneering measure is playing very low down in politics, and it is to he regretted that the Leader of the Opposition should have given utterance to such a sentiment. I', may be that lie was hoping to play the card himself as part of the policy of his party, and in the keen pang of disappointed hopes has embittered his tongue, a false step which will surely be borne in mind by the electors. The proposal for an universal pension is equally absurd in view of the felony's finances, even if 'accompanied by a contributory scheme, nor is there any call for provision to enable all people over sixty-five years of age to become partakers of the bounty of the State- Yet, while Mr Masscy objects to the increase of the present pensions on the score of cost, he at the same time advocates the general pension costing another two millions at the least. Does he make this proposal in the interest of the really poor ? Certainly not, for it is just that class Who would derive the greatest benefit from the addition which the Government propose, and . this 'boon Mr Massey would withhold in order to give to those who are not urgently in want. Tlte proposal of the/Government has all the merit of an act of justice to the present pensioners, who, under existing conditions, will not find themselves any better oil than thoy were with the seven shillings a week when il was first provided for them, aid the Premier put the matter in its true light when lie said that it would have been a reproaeli if the old folk were not put in as good a position as when the scheme was first passed. There may have been a few abuses of the Act, but they count a-s nothing compared with the benefit conferred on the majority or the recipients. The care shown for our aged people is one of the many, though not the hast, of the good works carried out by the Government, which has earr.r.i for the co'ony the respect and est.'em of other count lira. Any ati.nipt to prevent that good work from being kept abreast of the times ■ will rightly recoil # on those who are cither so short-sighted, or so wilfully Mind, as to place obstacles in the. way of a proposal which is so preeminently honourable and humani'•li'ian.