FINANCE AND COMMERCE

Press, Volume LXX, Issue 21289, 8 October 1934, Page 13

FINANCE AND COMMERCE

The most striking feature of the economic statistics for August is the marked rise in the value of imports which rose in value (o I '2 (i; 0 55 ( >' equal to i13.219.0C.) in Now" Zealand currency, or £2.506,000 in sl. T ii n o This is the highest value --measured in either New Zealand eurrem-v or in sterling-in any one month vj,,,.,-. January, 1931. During the expired portion of the current calendar vcar imports have shown a marked upward, tendency as compared w.. the position last year, and it would appear that an adjustment, of imDorts to the improved returns from export tradin" is taking place. Statistics of imports of individual items reveal substantial increases in the volume of imports of many important commodities; for example, the number of motor vehicle--imported during the last eight months totalled 7918, as compared with 1905 during the same period last vear. Imports or motor spirit also are substantially higher than was the case durinc this period of last year, while certain? materials for the buildim* ndustrv--notably channel and girder iron and galvanised iron sheets —have been imported in considerably greater quantities during the current year (ban was the ease during the first eight months of last year. Extern.-! Trade

Exports of merchandise dun; « .August were valued aI. .Cy.oyo.-101. an increase of £229,403 over tin- -Inly total, and of £449,811! over the- fotiO lor August of last year. There i.-; normally a lalling-off in the value of exports in August as compared with July, the rise on this occasion being caused mainly by an increase in I hequantity of mutton, lamb, and porkexported. The increase in the vain.* Of exports in August of this vear, as compared with the total for die same month last year, is due partly to the export of larger quantities of meats. and partly to higher export prices of meat. . The recorded value e. imports during the month of August. was £2,650.559, equivalent to £2.300.000 in sterling and £3,219,000 in New /.'.ca--1 land currency. This is the highest monthly total in sterling value since January, 1931, and in New Zealand currency since December, 1930. Tne marked improvement in monthly totals of import values during the current year is partly due to higher wholesale prices overseas for many com- ' modifies imported into New Zealand, j but, undoubtedly, the greater part of the increase is due to a in the physical volume ol imports. The value of imports in August exceeded that of exports by £102.000 in sterling, or £139.000 on a New Zealand currency basis. This is the 1 second successive month in which an excess of imports has been shown. In ! the later months of 1930 a heavy ex- : cess of imports was recorded as a re- : suit of the sharp drop in the value of j exports and the lag in the adjustment I of imports to a rapidly developing ceo- I nomic crisis. The position is now, hap- | pily, reversed, the rise in the value i of the imports being in adjustment to i a continued improvement, in the value j of exports and in the economic posi- i tion generally. I Banking j

Banking statistics for the month of August illustrate the change-over of the note issue from the trading banks to the Reserve Bank of New Zealand. The. average circulation of notes issued by the trading banks was, during July. £6,247,957. while the eorrcspondin::. tfgure .for August was 1M,375,201. a further fall during the first two weeks of September bringing the total down to £3,064,198 on September 10. The Sold reserves of the tradins banks have* apparently now been entirely taken over by the Reserve Bank; the •total metal reserves of the trading banks, which amounted to £5,039.022 on July 30 (approximately £4.330,000 of this being gold), having fallen to £876,123 on September 10. The net Dote circulation has not. appreciably changed, the total value ot all banknotes in circulation on. September 10 being £6,049,531, as compared with £6,169,849 in the last week in July. The weekly average of bank debits to individual acco-.nts (excluding Government) during August was £1i;464,000, as compared with £9,556,000 in August, 1933, and £8,793,000 in August, 1932. This significant indicator of business activity thus points to a much more favourable ; aituation than was the case at the i name period of each of the two pre- • ceding years. Deposits on current ae- j count also show up in a favourable light : in August, a slight increase over the ' July figure being recorded; whereas, I in other years, a material decrease j usually takes place between these two { months. The average value ol de- ! posits on current, account during ] August (£22,126,000) is considerably ; higher than has been recorded in I August of the years 1930-33, and is . not substantially below the August. 1 Jigures for 1928 and 1929 (,€23,253,000; and £23,677,000 respectively). I Deposits on fixed account in August ) tveraged £41,503,000. a fall of £204,000 i since July, but still an abnormally ' high figure. At the same time, ad- i vances fell by £1,013.000 to £39,579,000 j in August, the lowest monthly figure j recorded since monthly banking statis- i tics first became available tin April, j 1928). The ratio of advances to total | deposits fell to 09.49 per cent, on ! August 13, but has since improved to | 62.46 per cent, on September 10.

Sales Tax Sales tax receipts during August / totalled £185,037, an increase of 9.7 Per cent, over the total for July. The August figure is the highest recorded since January, when tne total was £187,640. It is evident that the value 9" v-holesale transactions is increasing, the improvement in the import wade, and the increasing yield from the sales lax, pointing definitely to a considerably greater volume of internal wholesale trade. Railway Transport I'he volume of goods' traffic on the railways as indicated by the net lonmiles run during August shows an increase of approximately G per ecu!,., aa compared with the July period, the August total (30.818.000 ton-miles* being materially higher than the figures ™r similar periods in 1931, 1932, and The number of passenger journeys also shows an increase over that recorded in 'he July period, although « is slightly lower than for the August Penpd of 1933. The financial statistics of railway operations reveal an excess of £3541 "i working revenue over working expenditure—a favourable result, since !" this period an excess of expcndi- ''"■« is normally recorded.

MONTHLY KEVIEW BUSINESS STATISTICS DEVELOPMENTS IN AUGUST Statistics indicative of the ~tate or business in August show a welcome degree of buoyancy for an oil" season month, says the September "Abstract of Monthly Statistics." E.cports increased slightly in value as compared with July, due in the main to heavier shipments of meats. Statistical series not subject to a marked seasonal decline in the early spring months showed gains as compared with recent monthland transfer and mortgage rcistrations, for example, rising sharpiV be- ' vond the figures recorded for man- i months past. Sales tax receipts showed i a further substantial increase: while railway revenue exceeded workiw- I expenditure during the August period I —- ajj unusual result at this period of ' the year. Building activity, under the i stimulus ot the Uneinplovmcitt Board''- ' building .subsidy scheme increased i considerably in August—hidem- bv the value of permits issued in th>- ! larger towns. " i

PRICE INDEX

AUGUST MOVEMENT The general index numbers oi export prices for the month of Angus-. \ according to the September Abstract! of Statistics, was 1077 ion. the base:' avernrje export prices vulinr; during | 1909-1:? equals 1000). a decrease of 2.0! per cent, a.-; compared with the ligure 1 for the preceding month, and ot : 11 '■■ per ccn!. below 1914 export prices. The ' index numbers for the dairy product? l and meat groups showed tiie greatest j decreases; anion.'; the more important! group;;, but in no ease was there evidence of a serious price decline. Flue- i in Ihe exoort prices index! number at this period of t'ac year when wry little produce i.s be ; u" ■ -shipped, have not the same significance ' as price movements in the early month---; ct tlie year.

! , A slight upward movement occurred in the wholesale prices index between •July and August, [he general index I number increasing from J33(3 to 1342 j 'on (he base: nvcra,,j prices rulin" I miring 1.900-13 equals U)00>. Both ! locally produced commodities and im- • ported commodities contributed towards this slight increase. '.I he retail prices index number (or i an sroups combined was--, on Au-ii*t la. W)7 'on the base: avera-e price* rulin.if during l<)2o'-30 equal-; "IOOOi an increase (if 20.5 per cent, over 1014 retail prices and 1.4 per cent, over the level of retail prices ruling a year ago. ■The six-monthlv collection of dalv : •is to rents was taken on Angus! ! !•). Hie Dominion index number fur "(higroup on tint date buin" 750 (on the' ioin C ''.„''' V( " J ' ; '-7 ,J il,!i: ' : - during I l.)2!)-..U equals HIOOi. This li-'ure re-! presents u decrease of 3 points or Je« I than i |)er eeul. since February. ~" i ». J-hiV" ' lle t ' iothi "~ dupery, audi seellaucous sroups were practically !"c same as at the immediatelv nrecedng col ection of this data ('m M av i oVe,,'!" ] " u V b ?' fol ' ,he clothing: f-l'e •hv i '" d 1(> S'-oup having alien by j points and that for the m.see! aneous group by 1 po i n t. "" ! t'ood prices ha\-e fallen slightly or i ion index number for the three food ffi™st' lowing a decreased ; Ponit,, 01 u.i, 1)C1 . L . cl)t>i siii( . u (ha! j

BREWING INDUSTRY STATISTICS FOK Till-; \K,\H 'l'll- September "Abstract ol Srati- ;;<■••>_ contain:; t lv, slaU.tics rebtimr to "'L orcwing m mstry fur tlio last year. IVrsens iindiii;. employment in thi; industry dm in- l(;33-34 numbered COT.

-ii--.-i::- ! '. , ; 1 ;i 0 '" m -- 33 - ami th^ Pi c ~t. rue cose of materials "scd c.cchncd by •) pci . cont but t| value ol products recorded on upward movement ol 10 per cent., this scnecleal by an increase of 17 per cent Z, Ad f c L y ' dhw - A substtintial in- ,'", b '; ° f I. 2 P ol ' cent - is recorded for ,; .!' ( ', ,n ? tnL ' r expenses of operaiion F.oer only amounted to £o6l2Kloi 1J.,0-3-k as compared with £059-UJJ '" tnv pivva,!-' year. The value' ..■: i-'id. building,, plan', and maeluVrv advanced by 1 per ~,-;.,( " ' - < Tlv: following table gives the quantifies and values Uiicluciinr. beer dutv"f the ale and stout brewed during (he last tl'iroe years:

Ale. Slum. , . Gallons. Gallons. b '<"- ;: -' . ■ 3.997.027 789.4C4 »ij2-3."J .. 3,120,340 (183.713 WAo-yi .. 3,141,000 090.440 lioi-oJ .. 1.420.318 173.712 1932-33 1.311>.5:>2 m 333 IWS-- ,J ! i.333.135 !37!g93 All die foregoing figure, are gxclu.---ive of wastage. The tu'al of ale produced during 19.33-31 was" approximately 20,000 gallons more than for 1932-33; the value showing an increase of 3 per cent. Bottled ale prcoucoci advanced by 13 per cent, m

mtanlity r.nd 17 per cent, in value, while ale in bulk receded by 2 per cent, in quantity, but increased by 1 per cent in value. The total quantity of stout produced rose by 2 per cent.; the value increased by 4 per cent. The quantity and value of bottled stout advanced by 6 per cent, and 8 per cent, respectively, while .'tout in bulk decreased by -( per cent, in qiianlily and. 5 per cc:,t.' in \jlvj. SKINS AND HIDES W ISLINGTON SAI.K Hides advanced lully a halfpenny ; and some sorts up to a penny at the I sale held on Friday by the Welling- j ton brokers. !

Spirited competition prevailed for all lots of hides submitted, and a total clearance was made at auction. Best conditioned parcels were in very keen request, exporters and tanners taking t the bulk of the offering. As compared with the previous sale, heavies. mediums, and light-weights were M to : ;d higher, while kip and yearling advanced .'.d. Calf met a strong market, prices generally being '.d, and at times yd better. "Weights of 1 to 51b sold to 7',d, 0 to 81b ojjd, and 9 to 101b GyU There was an excellent competition for all qualities of sheepskins, tine wools coming in for special attention. Ha.'fbreds and fine crossbreds were fully up to late quotations, while other descriptions were par to \d easier. There was a good demand for lallow. prices being Od to Is per cwt better. The range of prices is as follows:---

Sheepskins: Halfbred, 4',d to G r ;d; fine crossbred, 4.1 dlo Old: medium crossbred, 3'|d to sd; half-wools, 2',d to 4 : ,' ci: quarter-wools, 2'.d to 3id; pelts, 2d to 2id. Salted .skins: Three-quarter-wools, 3s: full wools. -Is. Hides- -Ox: 331b to 441b. l.'.d to 4!, d; 431b to 521b, 2 : ; dto 3 : ,' d; 531b to 591b. 41a to Gjjd; GOib lo 091b. 4jjd to 7011) and over, siid to 0 : ; d. Cow: 331b to 391b, 2:/ d to sd; 40lb to 431b, 2nd lo F>d: 4!)lb and over. 3,1 d to s*d. KiD: 251b lo 321b. 2Ad to 4id: 171b to 241b, 2.1 c! to (id. Yearling, Jllb to 161b, 2id to GUI. Calf: 91b to 101b. 4cl to G;d: Gib to 81b, 5-ld to S.;d; lib to 51b. 3id to 7-Id.

LONDON QUOTATIONS LONDON, October G. Quotations for hides are as follows: Meat works, dry: Queensland, 35 to | ■i.'lb- 5 1 per lb. 30-4011), -\'-.d: 25-351b. ] 4.d.' New South Wales. 33-4310, aid; i 3U--:0Ib. s : '.d: 25-35!b. 35d. . • Salted. Queensland, wet: -jO-OOJb ~tf\, I tO-501b, 3iM. New South Wales. M-WU>, ; 4m; 40-501b. 3am. „ ■ Victorian Abattoirs: aO-GOlb. ~.;d. 40- . 501b, 3;d. ' WELLINGTON RACING CLUBj DEBENTURES TO BE REPAID The Wellington Racing Club has informed the Stock Exchange Association that the club's A debenture issue. I ;inioiintiny lo £50.000. i.-s to be repaid I, at maturity date. viz. January 31, 1933. ' ;