PEOPLE'S SPENDING POWER.

Press, Volume LXVI, Issue 19986, 22 July 1930, Page 12

PEOPLE'S SPENDING POWER.

AN INTERESTING COMPARISON. There are two features of the bank returns for the June quarter that are interesting as showing the trend ol' economic conditions. The first is the spending power of the people which is ascertained by adding the demand deposits, against which cheques can bo drawn, and which, therefore, represent splending power, and the note circulation which represents the pocket money of the people, available for immediate expenditure. In the table appended the figures for each quarter beginning with June, 1926, are given:Free Quarter Deposits. Circulation. Totals. 1920 ' £ A' £ June .. Q7,594,49G 6,*47,555 ;;4,142.031 Sept. .. -4,907,961 U,4rt»,4i18 i! 1,393,1i99 Dec. .. '.i3,131,103 0,757,707 1927 March 24,440,778 6,003,031 31,041,459 June .. 24,741,202 (i. 537,002 3.1,328,264 Sept. .. 21.815,504 6,279,329 28,094.831 Dec. . . 21,202,722 (j,570,001 30,832,783 1923 March 24,452,10 l 6,370,608 30,858,819 June .. 25,357,145 6,432,109 31,789,254 Sept. .. 23.344,954 ' 6,160,287 29,511,241 Dee. 22,179,748 6,521,100 28,700,854 1929 March 25,730,743 6,370,891 32,107,037 June . . 26,810,881 6,547,872 33,358,753 Sept. . , 23,908,295 6,272,353 30,240,643 Dec. . . 22,728,494 6,544,522 29,273,016 1930 March 23,905,822 6,417,038 30,322,860 June . . 23,225,804 6,433,265 29,659,129 Compared with the March quarter the spending power has contracted by the comparatively small sum of £663,731, but compared with the June quarter of last year there is a shrinkage of £3,099,624, equal to over £2 per head of the entire population. The spending power was fairly constant in the years 1927 and 1928. Thus in June, 1927, it was £31,328,264, and in 1928 it was £31,789,254. Another arresting feature of the returns is the big increase in advances and the relatively heavy decline in deposits. If the country were ring fenced, so far as credit is concerned, then the increased advances mado by the banks during the past quarter, as compared with the June quarter last year (and the increase amounts to £6,655,951), should be reflected in the amount of the deposits free and fixed, but the deposits show a shrinkage of #3,303,856. Thus it would appear that during the twelve months not only has all the credit advanced by the banks vanished, but also £3,303,000 of the funds of bank customers, or a total of £9.959,807. This credit appears to have been exported to pay for merchandise imported, securities imported in the form of shares, and also to pay for services. The outflow appears excessive, and this perhaps is the reason j for the high rates of exchange. DAIRY DIVISION. MR F. H. TAYLOR TO PROCEED TO LONDON. [THE PRESS Special Service.] WELLINGTON, July 21. To insure that. New Zealand dairy produce shipped to England is maintained at a proper standard, all shipments are watched as they arrive in the Old Country by an expert officer of the Dairy Division of, the Department of Agriculture This duty has hepn fulfilled during the past three years by Mr Ross, whoa? term has now expired, and he is returning to New Zealand. It was announced to-day by the Minister for Agriculture (the Hon. A. J Murdoch) that he is to be succeeded bv Mr F. H. Taylor. who is at present stationed, at Invercarjzill as a dairy instructor. HIGH COMMISSIONER'S REPORT. [THB PBSSS Special Service.] WELLINGTON". July 21. The Department of Agriculture has received the .following cablegram, dated the 19th instant, from the High Commissioner for Now Zealand; London:— TALLOW. The spot market is quiet and steady, with a fair demand at auction, 675 packages being offered and 444 being sold. Present quotations are:—Mutton, fine 31s, fair to good 26b to 295, dark to dull 24s to 255; beef, sweet and-or mixed 27b 6d to 355, fair to good 24s 6d to 27s 6d, dark to dull 23s to 24b; mixed, fair to good 24s to 275, dark to dull 23s to 245; gut, etc., 20s to 13s per cwt. HEMP. The Manila market is easier under selling pressure and limited support.'" "K" grade has,been sold at £22 10s August-October shipment, and £22 15s September-November shipment. •Sisal—The market is quiet but steady on the basis of afloat and June-August shipment, first grade fair average quality £24 15s, JulySeptember and August-October shipment £25. Mexican Sisal —It is reported that 28,000 bales have been lost by the fire in progress, but the market is not greatly affected by the reports, as present stocks there are 300,000 bales of good white. The nominal quotation is £2O 15s. New Zealand —The market continues dull. No first-hand soles are reported. High fair is offered at £34 spot Antwerp, but there are no buyers. WOOL. The sales continue with prices better. Merino has moved against buyers and prices for other sorts are fully maintained. MILFORD DAIRY CO. The tenth annual -report of the Milford (Temuka) Co-operative Dairy Company, Ltd., for the year ending July Ist, reveals a very successful year. Suppliers have received, by way of advance. Is 6d per lb butter-fat, and the final accounts indicate a further payment of at least gd per lb. This amount will be disbursed as soon as funds are available. The directors naturally feel gratified that at the beginning of the season they accepted for the output a price which has proved to be greater than a consigning policy would have realised. A matter for congratulation is the increasing quantity of cheese manufactured—2BlJ tons, compared with 247 tons in the 1928-29 season. The company commenced business ten years ago with a subscribed capital of 1422 £1 shares, of which 3s per share was called up. The paid-up capital now stands at £2494 10s. The. outlay on land, buildings, and plant was £8991 9s 3d, whilst extensive additions have from time to time been made. With the present valuation of the fixed assets, there is an excess of approximately. 31s for each £1 share. During this period there has been received at the. factory for cheese-making 47,289,9761b of milk,, containing 1,700,4521b butter-fat, and manufactured into 2053 tons 15cwt and 31b of cheese. The f.o.b. value of this cheese totalled £172,777, ■of which £136,571 was paid to suppliers, the difference representing the cost of manufacture, administration, and depreciation. These figures are approximate, and do not take into account milk separated at the factory, whole and whey cream sales, and trading credits. The average per lb butterfat received by suppliers over the ten years proves to be Is 7id: the highest (1920-21), 2s 8d; the lowest (1921-22), Is ljd. The balance-sheet shows that the advances to suppliers totalled £18,295 13s, cheese sales £21,663 13s, and whey cream sales £549. ' Administration costs were £490 13s 9d, doi preciation £394, and balance to appropriation account £407 17s Gd.

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