FINANCE AND COMMERCE.

Press, Volume LXV, Issue 19667, 10 July 1929, Page 12

FINANCE AND COMMERCE.

WOOL VALUES.

GOOD AUSTRALIAN SEASON STRONG GERMAN COMPETITION. [THE PBESS Special Service.] AUCKLAND, July 9. Improved prices were realised in the elosing wool sales of the Australian season last month, according to the prominent Australian buyer, Robert B. McComas, and, although winter rains were urgently needed in some districts, another good clip was expected next season. Mr McComas is representative of the Australian firm of William Haughton and Company and Director of the Commonwealth Bank of Australia. He arrived at Auckland from Sydney by the Ulimaroa on a business tour. "Improved prices at the close of the ■eason were particularly noticeable in the inferior qualities, which is regarded as a very encouraging sign," Mr McComas said. "The principal factor in realising these hisrh prices was competition from German buyers. They bought very keenly, and two of them headed the list, ea-'i buying visibly over 4000 bales." The activity of Japanese buyers was not as marked as usual, and Mr McComas attributed this fact to the decline of the yen owing to the attempt t> stabilise the Japanese currency on a gold basis. England, France, Belgium, and Italy were operating only moderately, he added, as they found German competition too strong. Neither American nor Russian buyers were visible on the market, although some of the offerings would ordinarily have proved very acceptable to the Russian trade. "The pastoral position in Australia at present is very favourable," Mr McComas said. "However, over a wide area, principally in the Riverina districts, the winter rains have yet to fall. Unless they come shortly the position for the coming spring and summer will not bo hopeful." ROYAL AGRICULTURAL SHOW. NEW ZEALAND EXHIBIT. (earns prbss association— ey electbic TELSOaAPII—COPTBIOHT.) (Eeeeived July 9th, 5.5 p.m.) LONDON, July 8. New Zealand has an attractive exhibit at the Royal Agricultural Show at Harrogate to-day, emphasising the tourist and sporting aspects of the e untry for the purpose of interesting people with capital, and retired men with pensions. It is expected that 2,000,000 people will pass through the turnstiles at the ■how, which Sir James Parr will attend. —Australian Press Association. ECONOMY! THE OFFICIAL WAY. A Federal Public Service accountant Who refused to supply a box of nibs to the Cabinet, and limited Ministers to five nibs has, it seems, created a desire in the minds of the service heads to out do each other in methods of •conomy, states a Sydney paper. An order has now gone forth to one department that before an officer can xeceivo a pencil he must return the ■tub of his old pencil. What is to be done with the pencil •tubs has not been divulged. Inconsistencies in public finance are admirably revealed by the £2OOO a year allowance paid to the GovernorGeneral for living in Conderra—this year he has lived in the capital about three weeks —and the edict about the public servants' pencils. RECIPROCAL TRADE. ADVANTAGES TO CANADA. (min pbbss association— bt busct&ic TII.EG&APH—COPVRIGHT.) (Received July 9th, 11.35 p.m.) OTTAWA, July 8. Closer co-operation, embodying reciprocal relations between Great Britain and Canada, will be discussed daring the week at the Co-operative Union of Canada Congress. Mr J. A. Wilkins, president of the Co-operative Wholesale Society of England, who is here to attend the Congress, stressed the advisability of Canada adopting a co-operative system aa practised in England and Scotland. Closer reciprocal trade between the Mother Country and Canada, he believed, would prove to the advantage of both.—Australian Press Association. United Service.

N.Z. INSURANCE COMPANY. (mass ASSOCIATION tbleobak.} AUCKLAND, July 9. The directors of the New Zealand Insurance Company have decided to recommend to shareholders at the annual meeting on August 6th the payment of a dividend of lid a share for the half-year, making a total disbursement for the year of Is lOd. The dividend for the year is at the same rate as last year. NEW ZEALAND APPLES. (VtVTXD FKBSS ASSOCIATION—BI ELBCTSIC TELEGRAM—COPYRIGHT.) ROTTERDAM, July 8. A shipment of 20,000 cases of New Zealand apples, from the Karamea, met an excellent demand at from 14s to 17s per case.—Australian Press Association. EXPORT TRADE TO U.S. Tb« following extract is from a statement •f tha exports from the chief cities of New (•aland to the United States and Territories, which ha« been supplied by the American Consular Office in Christchurch: — Quarter ending Jane 30th, 1928. $ Wellington .. .. 1,010,511 Auckland .. .. 1,785,804 Ohristchurch .. 2,760,084 Dlinedin .. ■• 440,720 Total - . •• $5,997,119 Quarter ending June 30th, 1929. Wellington .. -. 786,010 Auckland .. • - 1,462,967 Cnjrlitchurch . - 8,392,208 Dunedin .. •• 513,256 Total . - - • $6,154,441 The statistics show that Auckland was almost the only port that exported in any eonstderable measure to the American islands. The export figures from Auckland Jor the quarter ending June 30th, 1928, were , $219 465, and for the **me period, 1929, #208.228.

BANKING. QUARTERLY RETURNS. ENCOURAGING FEATURES. [THE PBESS Special Seryice.] WELLINGTON, July 9. The Bank statements for the June quarter give indications of a gradual return of confidence. There is still a tendency for the time deposits to increase, but on the other hand more money is being held at the banks at call, showing that the owners anticipate using these funds in ways that will yield profits. All classes of deposits show increases, and that is to be expected in the second quarter of the year, for by then the season's produce is realised, and practically the whole of the returns in hand. The movements in the deposits as coni- ! pared with the June quarter of last year are shown in the table appended: June, 1928. June, 1929. Increase. £ £ a Govt. .. 1,956,075 2,794,255 838,180 Free .. 25,357,145 26,810,881 1,453,736 Fixed .. 27,589,988 30,241,013 2,651,025 Total .. 54,903,208 59,846,149 4,942,941 It will be noted that while the demand deposits have increased by £.1,453,736, the time deposits have expanded by £2,651,025, or by £1,200,000 more than the free deposits, but compared with the March quarter of this year the free deposits show an increase of £1,074,138, while the increase in the fixed deposits is only £632,203. Of the increase in the demand deposits of £1,453,730 compared with June, 1928, all the banks obtained a share, the Union Bank and the Bank of New South Wales showing the highest relative gain. Tfce figures of the several banks are shown below: — June, 1928. June, 1929. Increase. £ £ £ NZ .. 11.966,606 12,654.473 687,867 Union .. 21849,425 3,096,334 247.109 N.S.W. . . 2,717,036 2,943,045 226,009 Australasia 2,516,731 2,613,246 96,515 National 4,332,308 4,489,440 157,072 Commercial 974,979 1,014,143 39,164 Total .. 25,357,145 26,810,881 1,453,736 With respeet to the fixed deposits the increase as compared with last year is £2,651,025, while last year the increase shown over 1927 was £5,840,884. The increase shown in the March quarter over the corresponding quarter of 1928 was £4,132,608, so that the tendency is for less money to be tied up in fixed deposits. The fixed deposits held by the several banks show as under: — June, 1928. June, 1929. Increase. £ £ £ N.Z. .. 13,425,599 14,953,943 1,528,344 Union . . 3.123,339 3,396,510 273,171 N.S.W. .. 3,633,537 4,041,100 507,563 Aust'asia. fi.492,507 2,762,468 269,961 National 4,334,468 4,435,733 101,265 Commercial 580,538 651,259 70,721 Total 27,589,988 30,241,013 2,651,025 The aggregates of the free and fixed deposits for the June quarter of each of five years, show as under: — Free Fixed. Deposit. Deposit. Total. 1925 .. 80,497,209 20,966,420 51,463,635 1926 .. 27,594,496 20,674,853 48,268,349 1927 .. 24,741,262 21,749.104 46,490,366 1928 .. 25,357,145 24,589,938 52,947,133 1929 .. 26,810,881 30,241,013 57,051,894

It will be noted that while between 1925 and 1927 the free deposits declined sharply, there »has been a steady increase last year and this year. The fixed deposits have grown rapidly since 1926. The advances which contracted considerably in 1928 as compared with 1927 this year, show an increase of about 5 per cent, which must be very welcome to the banks. All the institutions shared in the increase as shown in the table appended:— June, 1928. June, 1539. Inc'se. New Zealand 19,242,877 39,757,578 514,701 Union .. 5,176,203 5,471,437 295.234 N.S.W. .. 5,620,291 5,704,882 84,591 Australasia .. 4,434.749 4,654,007 219,258 National .. 8.422,650 9,199,309 776,659 Commercial .. 1,352,731 1,581,571 228,840 Total .. 44,249,501 46,368,754 2,119,283 The discounts at £1,038,427 have contracted by £139,027 as compared with last year, but the discounts have shown this contracting tendency ever since. 1926, and the total of the advances and discounts for the June quarter of each of five years are disclosed in the table appended:— Advances. Discounts. Total. June— £ £ £ 1925 .. 42,421,049 1,514,720 43,935,759 1926 .. 46,985,833 1,728,908 48,714.741 1927 .. 49,244,998 1,508,108 50,753,106 1928 .. 44,249.501 1,177,454 45,426,955 1929 .. 46,368,784 1,038,427 47,407,211 It is decidedly encouraging to see increased demands made on the banks for accommodation, for it is an indication of a slow return of confidence. The increase in the advances is very small, and the banks have a plethora of funds as will be seen from the following table, which shows the relation of the banks to the public as lender and borrower:—

Excess of Deposits. Advances. Deposits. June Quarter— t £ £ £ 1925 .. 51,463,635 43,935,679 7,527.866 1926 .. 48,269,349 48,714,741 445,392 1927 .. 46,490,366 50.753,106 4,262,740 192S .. 52,947,133 45,426,955 7,520,178 1929 .. 57,051,894 47,407,211 9.644,683

The excess of deposits this year is larger than in any other year. The banks are flash of funds, and can provide a great deal of credit for legitimate business. The note circulation for the past quarter was £6,547,872 against £6,432,109 in the corresponding quarter of last year. The increase is small but it shows that the people are handling more pocket money than a year ago. A good increase is shown in the purchasing power of the community, and this is obtained by taking the demand deposits and note circulation which, together, represent what is available for expenditure. In the past quarter the note circulation totalled £6,547,872, and the free deposits £26,810,881, the two together amounting to £33,358,753, which contrasts with £31,789,254 in the corresponding quarter of year, and £31,328,264 in 1927. This is very encouraging, and gives hopes that during the balance of the year business will be brighter and more active than in the past two years. DAIRY PRODUCE. Dalgety and Company, Limited, have received the following cablegram from their London office, dated July Bth: Cheese —New Zealand white 89s to 90s, and coloured 925. EGG AUCTION. Messrs Harris Bros., Ltd., report that the usual weekly auction sale of "Feather Brand" guaranteed fresh eggs was held yesterday afternoon. The following prices were realised: Hen eggs, Ist grade (2oi or over), Is 8d; hen eggs, 2nd grade (under 2oz), la 6d- —6