The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. SATURDAY, OCT. 3, 1890.

Waikato Times, Volume XXXVII, Issue 2999, 3 October 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. SATURDAY, OCT. 3, 1890.

Tiie funeral dirges that have been sung about our grand little colony must cease, and our bardic effusions should be of a jubilant character, like the Phoenix, New Zealand has arisen from its ashes and is steadily but surely placing itself in a sound financial position. An article in the last " Mercantile Gazette" shows the astonishing manner in which the country has steadily advanced, in spite of tho tightening of tho purso strings that has been practised by tho various banks. Ic comparos NewZealand with tho other Australasian colonies and shows that we aro not tho bankrupt estate that some would make us out to be. It first rol'ers to the cessation of the expenditure of borrowed money, and tho drain upon tho colony in paying interest 011 public and private indebtedness; it then treats of tho benefit that foreign capital has been to the country after which it continues:—"There is, however, another cause which has powerfully operated during the past few years, in cansing the scarcity of money in this colony, and the consequent dulnoss of trade. We voter to the attitudo assumed by tho banks towards the trading community. No doubt mercantile matters were in a somewhat perlious state in New Zealand a few years ago. Wool was down in price, so was wheat. The frozen moat trade was in its infancy, and land had been " boomed" in some parts to a fictitious value. Tho intention of the bunks to call in overdrafts, and restrict advances, was not unnatural. The extent to which they carriod out this policy may be judged from a brief analysis of tho banking returns for tho past four years. The advances made by the banks doing business in Australia have increased during tho four years ending June 30, 1891, from £109,497,000 to £138,923,000. There has thus been an increase of ,£29,425,000, or at the rate of nearly seven and a-half millions per year. Of this largo increase Victoria has received .£l. r >,035,000 ; New South Wales, £9,817,000 ; Queensland, £~>,0!)8,000; Tasmania, £1,300,000; and the other colonies smaller amounts. The only colony of the Australasian group which has decreased her advances during the four years is New Zealand, and her advances stood at June 30 of this year ,£2,118,000 less than at June 30, 1887—in other words, whilst all the other colonies have received largo suras from the banks towards carrying on their business, this colony has steadily paid oft' its advances at the rate of about £530,000 per annum. During the last year of the four alone, the advances of New Zealand decreased by £1,106,G00. Side by side with the decrease of advances, the increase of deposits

lias fjono on most sutisf.iciorily in this colony. During the four years enditin .1 unn .'!0, the deposits in the | banks in New Zetland increased by .L'1.t55."),000. At that date .£12.892.000 was on deposit, bein:,' about one-third the sums held simi larly in the wealthy colonies of Victoria and Now South Wales, while New Zealand's deposits exceed by three millions those of Queensland, and are more than those of South Australia and Tasmania added together. If in concluding our review of the figures, so far as they relate to this colony, we endeavour to ascertain the excess of advances over deposits (i.e., the extent to which the banks are called upon to assist their clients beyond the resources furnished by deposits) the following results appear: —At June 30, 1891, there was owing to the banks by Victoria, £11.73(5,000 ; by New South Wales, £7, 500, 000 ; by Queensland, £7,408,000 : and by New Zealand only £536,715. The figures quoted speak eloquently of the healthy condition of New Zealand. They show that this colony lias been able to stand the tightening of the pursestrings, which could hardly be applied to any other colony without involving a serious crisis. We are quite aware that the rise in wool and wheat and the development of the frozen meat trade have enabled these splendid results to be achieved. There must be "real grit" and -'sound bottom " in a country which is able, in addition to paying its way, to clear off its advances at such a rate as we have been able to do. These are facts that should be known throughout the length and breadth of the colony, and we think such facts should cause the banks to somewhat modify their restrictive policy. We very much doubt if another country could be found that would " rise to the occasion " as our little colony has done—and that " under the lash," administered with no stinting hand by our monetary institutions.