THE FINANCIAL FUTURE

Press, Volume LXXI, Issue 21387, 1 February 1935, Page 13

THE FINANCIAL FUTURE

KECONSTRL'CTION PERIOD TAMTION' RELIEF UNLIKELY lcr 1935 promises v , .j. a.-j Mr if. Kitson (chairman of O: -'church Stock Exchange) at aa: aa' meeting of members yes- • t "b'.t ' think it will be a year j.i< rablc reconstruction. First, j, jrjva: a amy cherished ideas and prJ". i!i -o. Events of 1932 and yxc. ■■■< ab'-'.-t <o be felt in future conr: ■, . Laaang those years contracts .r; j> . labhshed business customs ; ,i;k iamngs. Legislation was about to protect certain interfrr :ne ultimate good of the cominterest and rents were forced c , v ■ \arioiis acts and a slow re-<-,.a.-.ti < f period commenced. Many priijj:' eaaKierod that much of that - i . wa- panicky and socialistic, .■ . too soon yet to judge. We '.jrvc ' - i.-e prepared to alter many of „.'r to meet entirely altered conrat ,fjj: I li. i!:k the most outstanding v-"! the period since the war is •ant ao :;Ti< =i: can isolate itself and \jc p;p'Tou.-. And we are learning that ao action of the community in av emu-try can prosper, with other tioa.- bcuis down and out. We are pa-.-iag rapidly through periods of eoflal:' a ar.fi nidation. high tariff ha:Tii■: •. reconstructions. quotas, con1> ;■( >:= I. :-. agreements—all experiments := c lar reaching effects and are often not realised • experiments are initiated. J.'r.y a-.i are brought forward to a. , t; ■ f-diatol.v knocked down. There f . i- : appear to be any likelihood . f as / a.wor.r.g of direct taxation in t. •• !>• :.. , :n<"!i for some years. Ina taxation must be cheerfully i a. those who arc in a position v. We have to readjust our t • •-i - aaci lives to meet these . j;. other words, we have to help ...... aaether to help ourselves. The relaaataaa! o! values and ideas must be a ■. iscos and it must be borne in l'triod of Cheap Money a. moment we were in a period t•' • .a aj> money, continued Mr Kitson. Tat bai.kmx returns disclosed a huge haia: ee of deposits over advances, and ■ \va: freely acknowledged that there v ■: plenty of money awaiting invest•aat The accumulation of money 11 a per! a lying in the banks, which ever-xa- linns were reluctant to withr'cv.aifg to the 25 per cent, ex- ( rate, had considerably swollen •ao naiaiaes disclosed bv the bank:a_: returns. Stabilisation might take e time. but it was, in some form, at -, .table in tlie long run: in fact, it a atat be nearer than many supposed. Traae rev.val yained its own mom entar... and in time the demand for new rapsta! would probably increase in relation to supply. There was. in addi- • .oa. tiie possibility of the withdrawal i.'. foreign funds from New Zealand. Taaa efore the buying of long-dated t'xeti interest securities at a premium that gave a return below 3.} per cent, rragiit. in a few years, turn out to be an ;i:|irude»! investment. I iisound Monetary Theories 'l'i.e speaker asked members to cont.cier very carefully the many proposals were ad\-anced for financial and . r.Tial reconstruction. Many of these ;a"<apo.-a!s were advanced by self conv. it!i commercial life. It was often a/r-d that tiie financial system had down badly and that it was a .' a case of repair, but of the scrap j a ; a The speaker wondered if those | :a. I ; a'a. tor the scrap heap ever i d bad: and considered what this! ; arle-raicd system had achieved for a aa':iad during the last 50 years. The aa,'roved standard of living, the freeooai of th.e worker from conditions a - tie belter than slavery, and the :. ■ ; aa! uplift and facilities for educa•a a ijad all taken place under the tent that was so loudly condemned 'o-day. This improvement had been jargeiy brought about by the freedom of labour, management, and capital, aad because of a swing which had knocked back progress slightly, the world seemed agreeable to the scrap heap advocates. In the presence of dangerous remedies and credulous converts, it was particularly necessary to control impulses, to invoke the discipline of the will and the resources of reason, in order that grave social Ji.jurv might be avoided.

j;i:skrve bank WIiKKI.Y STATEMENT ASSEI'S AND IJ.VISH.rnES (rtE>s ASSOl'l* I'IUM TEI.CGBAM.) WELLINGTON, January 31. A Gazette issued to-night contains e statement of the assets and liability, of the Reserve Bank of New Zealand, as at the close of business on January 28: Liabilities £ s. d. i i i'.i;ti-:jij capital .. 500,000 0 0 <1 i Gin-ia! Reserve Fund .. 1.000,000 0 0 i-'ii Hank notes 9,533,974 0 0 li; Demand liabilities — | a.i State .. 8,294,734 18 4 .bi Banks 7.687,072 1 4 m i Other . 5.766 15 9 <*>> 'J'uijf.- depot its .. "o Liabilities in curi nicies other than Zealand currency .. (V. O:iliabilities 51,476 13 2 .. 27.073.024 8 7 Assets £ s. d. •,:I c,: !,i .. 3,001,731 0 0 S'rrling cxonange . . 21.867.952 7 6 i i I i«.)id exchange Subsidiary coin 190.723 1 0 L(Ji Di. counts—'..i Commercial a: agricultural ! • Treasury and !'i-i! body ■ < T' Stale or u i icier- '!•» 'I v cthrr public authorities L.-,-. ' iVn'-!,is '' 1.971.781 410 '■■■J 1',:••• I; buildings O'hi';- assets 40.833 15 3 V.,'a! . . 27.073.024 8 7 I' i" ;i i J rc.-ervc 'N'". S less No. 6) to noit s. and other 'li 'iiand liabilities 97.44 per cent. I'KOI'ERTY SALE \. H. McCrostie and Comr<ai.y h port having sold, on account of the owner, his property at Ellcs- . ' i./nipriMng 11A acres ol land. " ''ii ;■ residence of four rooms and ' ' 1 '■ en 'Liiccs, to a ciicnt. — h