PROSPERITY OF NEW ZEALAND.

Taranaki Daily News, 16 June 1919, Page 5

PROSPERITY OF NEW ZEALAND.

REFLECTED IN ITS FINANCES. Said Mr. Harold Blanchard at tho annual meeting of the Bank of New Zealand:— The prosperity of the country is further reflected in the banking returns, and it may not be out of place to give the amounts of the fixed and free deposits and the advances and discounts in illustration. They are as follows: March

In the five years covered by the war the deposits have increased by £14,818,576, or about 62 per cent. The deposits in the Post Office Savings Bank during the same period show an increase of £17,031,588 (nearly 98 per cent.) ana those of the private savings banks (five in number) an increase of £1,319,423. Of the latter increase, £978,000 occurs in the figures of the Auckland Savings Bank alone.

On the other hand, banking advances have expanded by £8,530,890, equal to about 35 per cent. The increase in the advances isi due to a variety of causes. Since the signing of the armistice there has been a falling-oil in domestic trade, which has had the effect of many merchants accumulating stocks of highlypriced goods, while retailers are only buying from hand to mouth on the assumption that in the near future there will be a considerable reduction in prices. The accumulation of stocks and the fall-ing-off in trade are causing merchants to lean somewhat heavily on the banks. Another direction in which the prosperity of the country is reflected is in the revenue returns of the Dominion, and thiß is illustrated in comparing the figures .for a series of years, as under: — Year ended Revenue Expenditure.

The surpluses were as follows:—1914 £403,797, 1915 £72,142, 1916 £2,017,030, 1917 £4,308,777, 1918 £5,085,934, 1919 £3,078,773. In the five yeara there has been an increase in the revenue of £10,122,711, equal, to about 83 per cent., while the expenditure has increased by £0,847,735, equal to about 54* per cent. The surpluses during the past four years aggregated £15,090,514, and this "amount, together with £149,047 earned over in 1915, and making a grand total of £15,239,561, is being held by the Treasury in liquid form to meet such contingencies as may arise during the next year or two. It is a splendid achievment for a country with such a restricted population to provide so large a revenue as £22,352,372, which is equal to nearly £22 per capita. The principal source of the increase has been the Income tax, while the land tax and ileath dunes have helped considerably. The customs revenue, which is contributed by all classes of the communii •, has not increased to any extent, clue! / because of the extraordinary difficulties experienced in importing merchandise. The revenue obtained from customs and income t&v during the past six years compares as under:

Year ended. Customs and Income tax. March 31. Excise.

Thus; it will be seen that during tho financial year ended March'3l, 1019, the moneyed or capitalistic class, in which are included salaried and professional persons, land-owners, manufacturers, companies, etc., contributed, in income tax alone, £6,219,330 out of a total revenue of £22,352,372, or about 2S per cent.

Quarter. DepositsAdvances. 1014 .... .. 24,030,250 23,G0'u,750 1915 .... .. 20,829,239 23,740,501 1916 .... .. 31,274,053 23,733,892 1917 .... .. 34,350,539 27,094,930 1018 .... .. 35,505,497 29,317,895 1910 .... .. 33,848,820 32,203,040

March 31. £ £ 1014 . 12,229,661 11,825,864 1915 . 12,451,945 12,379,81)3 . 14,510,13? 12,493,107 1917 , . 18,367,547 14,058,770 1918 . 20,20o,222 15,120,288 1919 . 22,352,372 18,673,509

1014 .... .... 3,553,785 554,271 1915 .... .... 3,294,943 540,318 1910 .... .... 3,524,003 1,392,119 1917 .... .... '4,037,828 4,282,126 1918 .... .... 3,001,383 5,619.561 1910 .... .... 4,104,015 0,219,336