RECORD MONTH.

Auckland Star, Volume LXVII, Issue 297, 15 December 1936, Page 18

RECORD MONTH.

OCTOBER BUSINESS.

NOTE CIRCULATION RISES

UNEMPLOYMENT DECLINES,

Great business activity in New Zealand during October is indicated by the average net note circulation, given in the latest Abstract of Statistics, which was a record figure. The volume of cheque transactions was also exceptionally high. .As is pointed out the figures given relate to the short-term position in an off-season period, and have little connection with the probable state of business in the flush of the production

season now approaching.

Bunking- statistic* show a loosening up of credit facilities, deposits falling while advances increased, bringing the ratio of advances to deposits up to 7~>.9(> per cent, the highest figure for 11 months past. This may be due, it is suggested, to purely seasonal influences, an excess of imports being shown for the third month in succession, as is normal at this time of the year. The overseas funds of banks fell somewhat in sympathy with the trade situation.

Unemployment again declined, the number of unemployed males falling for the fourth month in succession. The total on October 24 was 415.140, as compared with 49,419 on September 20, and .~)S,481 at the end of October of last year. Overseas Markets. The prospects in respeqt of overseas markets 1 for New Zealand produce have I improved in keeping with the continued buoyancy in economic conditions overseas, notably in the United Kingdom. While the quantum of world trade as a whole shows only a comparatively slight revival, there is ample evidence of a world-wide improvement in the situation in respect of the demand for products of the soil.

Trade statistics for the month of October reveal a sharp drop in exports, the value of which was £2,507.301, as compared with the abnormally high offseason total of £3,980,558 in September. The quantities and values of all the main exports were considerably lower than in September, the export of butter in particular showing a sharp fall, from 248.04f1cwt (value £1,011,731) in September to 137.070cwt (value £701,385) ill October.

The. value of imports foil from £4,423,225 in .September to £3.947.222 in October; the latter figure, despite the fall, being still abnormally high for reeent years. As a consequence of the sharp fall in exports, a substantial excess of imports emerged as a result of the external trading in commodities (luring the month, the value of iin)>orts being £1,379.921 higher than that of exports. This is the third month ill succession in which an cxcess of imports has been shown, the figures for the preceding two months being—September £442.010. August £847.557. An excess of imports is normal at this time of t'he vcar.