DEFENCE OF BANKS.

Auckland Star, Volume LXV, Issue 24, 29 January 1934, Page 4

DEFENCE OF BANKS.

DEPRESSION REVIEWED. NEW ZEALANDERS FORTUNATE. CENTRAL BANK ISSUE. Some interesting observations relating to banking business ill times oi economic depression were made at the Christchurch Drainage Hoard s annual dinner, by All - . I'. L. Porter, manager ox the bank ot ±\ew Zealand in Christen inch, in responding to the toast of the board's bankers. the last year, from the bankers' viewpoint, said Air. Porter, had been one of alarms and excursions, it had started otf with a hign exchange rate, followed by proposals lor a central bank, the taking over of the banks' gold by the Suite, and then the devaluation of the dollar. The Government oi New Zealand, in its wisdom, had decided to establish a central bank, and there was a difference of opinion as to the wisdom of the step. Now that it had become the policy oi the country there was one tiling of which they could be quite sure, and that was that as far as riie trading banks were concerned, if there was anything that the central bank could do for the community as a whole, the co-operation of the trading banks would be forthcoming. (Applause.) In New Zealand, when once a course of policy was decided on, they were not in the habit of bickering.

Now that it had been decided that a central bank should be established, it would have the opportunity to show what it could do. None of them knew what a central bunk could do in such a email country as New Zealand, which was a primary producing country—a large farm practically, with few industries. In such a country it was unusual to have such an elaborate banking system. However, there was no harm in trying it. He himself thought it could not do any harm, but it would be an expense. However, it would have every opportunity to show what it could do.

Very soon they would have a complete new set of coins and bank notes—a complete new set of tools. He ventured to say that the result would be very much the same as before. Bankers, by strict adherence to the principles of their business, would be able to carry on. Tools did not matter very much; the world lived by the exchange of goods and services, and the business of the banks was to facilitate such exchanges. Power of the Banks. He thought the banks were, credited with having a great deal more power than they really possessed. It had become the practice, in times of depression, to blamo the banks and the Government, but all were the victims of circumstances. To blame t!<e banks was a very old practice; the man who lent money was still considered a scoundrel, and that was all there was to it. From his own personal experience the banks, as a whole, had been very steadfast in their attitude towards business generally. They had endeavoured to pursue a course which was neither over-confident nor pessimistic. They had endeavoured to be fair to everybody, and he felt that they had succeeded. Of course, they had made mistakes; but on the whole they had pursued a steady policy throughout. He had experience of different parts of the world, and he felt/ satisfied that New Zealand was one of the most fortunate countries. The depression had not affected it to anything like the same extent as it had affected other countries. They all had their unemployed, and it seemed inevitable that some people should be on short commons; but, taking: things on the average,' he thought that New Zealand had escaped the worst results of the depression. The national life had gone on almost uninterrupted; social services had not been curtailed; the Health Department was still functioning; education and other services were going on much the same as before. Though some were on short commons, he did not think that it could be said that they had anyone who was actually starving. Certainly no one should be starving in a country like New Zealand, which was singularly well placed. In respect of the fertility of the land, and its fine climate, it was A country in which there was plenty for all. The problem was that of distribution.

Exchange Stability. The one thing that prominent econo* mists were thoroughly agreed upon was the necessity for stability o£ exchange; They had been forced off the gold standard by the war, and it seemed now that nothing would serve their purpose but a return to that standard, and the sooner they returned to it the sooner they would be laying the foundation for the return to prosperity. FROZEN 'MEAT. ! • • EXPORT BUYERS' PRICES. The firmness of the London market, together with an apparent shortage of lambs, has resulted in a further increase in offers for lamb for export. Current export schedule rates are as follow: — Lambs. —361b and under, 7%d per lbj 371b to 421b, 7d; over 421b, 6V£d; seconds, 6Md. • Mutton—Wethers: Up to 481b, 4%d pet lb; 491b to 561b, 4%d; 571b to 641b, 4 1 id} 651b to 721b, 3%d over 721b, 3%dj seconds, 3%d. Ewes (in same classes)) 3%d, 2%d, 2%d, 2%d, 2',6d and 2%d respectively. Beef. —Prime ox, 16/ per 1001b; boner bulls, 12/6: cows. 7/ to 7/6 per 1001b. Pigs.—Up to 801b, 5%d to 5«/£d per lbj 811b to 1001b, 4%d to 4%dj 1011b to 1201b, 4d to 4M; 1211b to 1601b, 4^d. PRICES AT SMITSFIBLf).

The New Zealand Meat Producers' Board has received the following cable from its London office, dated January' 26, advising thai the following are the. approximate average prices realised for the week, bafied oh actual trahsactidfiß of wholesale quantities of the descriptions of Meat mentioned and ai'6 for representative parcels of the goods offering during the week, being for business .done on the basis of delivered to Smlthfield market and/Or exLondori store:—■ New Zealand Sheep.—Canterbury and North Island selected crossbred wethers and maiden ewes, 481b to 561b, 5%d per lb; 571b to 641b, 6V£d: 651b td 721b. 5%d; North Island, 48lb to sGlb. '5%d; 571b td 041b, 5%d; 651b to 721b, tMd; ewes, 481b and under, 4%d; 481b to 641b, 4d; Golb to 721b, New Zealand Lambs.—New season s selected North Island brands, including Downs, 361b and under, 79£ id iter lb; 371b to 421b, 7%d; second quality, average 321b, (5%d; other North Island braiids,. first quality, 361b and under, 7%d; 371b to 42ib, 7%d; second quality, average 321b, 6%d. Australi.-ih Lambs'. — Yictbiian, first quality, 301b and under, 5%d per lb; 371b to 421b, 6%d: Argentine Lamb.—First quality, 361b and under. 6%t1 f>eT lb', 371b to 421b, 6%d. New Zealand Beef.—Ox fores, 2%d per lb; Ox hinds, 3d. Argentine Chilled Beef—Ox fores, Wad per lb; ox hinds, 5%d. Australian Frozen Beef. —Ox crofts, over 1001b, 2%d per lb; Ox hinds, over 1601b, 3%d. New Zealand 601b to 801b, 6Vid per lb; 811b to 1661b. 5%d; ldllb to 1201b, o%d. Baconer: 1201b to 1601b, 6%d. Lamb market: Firm, with consumption satisfactory. Spot stocks light until arrival of further supplies next Week. Mutton: Wethers and ewes very firm owing to extremely short supplies. . Beef: Meeting with good trade, b.tlt prices unchanged. New Zealand pigs: Porker, heavier arrivals have Slightly eased prices, but trade good; baconer, firm, owing to better prices bacon.