NEW YEAR OPENS WELL

Press, Volume LXXII, Issue 21730, 12 March 1936, Page 13

NEW YEAR OPENS WELL

BUSINESS CONTINUES TO ' IMPROVE STATISTICS FOR JANUARY Statistics for January, which are set out in the current issue of the Abstract of Statistics, show that business in New Zealand has continued to recover, and that the new year has begun very favourably. As compared with the January figures for the previous five years, gains are revealed without exception by the more significant statistical series, says the Abstract. It has become quite evident that the momentum of.the recovery in business has increased considerably in recent months. Unemployment, as indicated by the r.iVmber of unemployed males ' returned by the Labour Department, shows-a further decreass, the total number on January 18 being 34,777, as ccmpaied- with 36,191 a year previously, ano 48,284 in January, 1933. January proved to be a busy month in respect of external trade, the approach of the flush of the exporting season being evident in considerable increase;*, in exports and meats and wool. Dairy-produce exports were somewhat lower in quantity than in December. The aggregate declared value of exports reached an exceptionally high figure for a. January month, the total of £6,098,335 being the highest since January, 1930. Consequently, despite a further increase in imports, the value of exports of merchandise exceeded that of commodity imports by an abnormally high amount (£2,501,068) for a January month. Dairy Produce Exports Statistics of' exports of butter and cheese for the period July, 1934, to January, 1935, afford an interesting indication of the trend of dairy produce production in the current season.. Exports of butter are 6 per cent, higher in quantity than in the same period of last sejson, while the aggregate declared v&lue of butter exports is as much as 46 per cent, higher.. Cheese production is, on the other hand, on a definitely lower level than in 193435, the quantity of exports during the seven months ended January, 1936, being 18 per cent, lower, and the declared value 8.5 per cent, lower, than in the same period of 1934-35. New Zealand butter on the London market has consistently realised much higher prices during the current season—despite a recent decline—than in 1934-35, when the market remained depressed di_ring practically the whole of the production season. Cheese prices show some improvement on last season's prices, but not to anything like the extent observed in the case of butter. The New Zealand Woolbrokers' Association reports that, up to the end of January, 305,438 bales of wool were sold at Dominion auctions during the current selling season, the gross realisation being £4,052,721. Approximately 35 per cent, of the estimated clip for the current season was sold at these sales, so that, with a continuation of the present level of prices, the aggregate value of wool production for the season as a whole should be in the neighbourhood of £11,000,000, an increase of £3,500,000 over the value of last season's production (£7,500,000). In making this estimate the 1934-35 clip has been valued at the average price—6.54 d per lb — realised at sales held in the 1934-35 season,' no allowance being made for the enhanced value of wool held over to this season's sales. Meat Prices

Prices realissd for New Zealand meats on the London market this season have been slightly lower than those ruling during last season. Exports of lrmb during the last seven months have been 16 per cent, lower in volume and 17 per cent, lower in aggregate declared value than during these months of 1934-35, exports ot mutton being also lower both in quantity and value—l2 per cent, and 15 per cent, respectively. Exports of pork are 11 per cent, higher .in volume and 7£ per cent, higher in value than during the seven months ended in January, 1935.

Ample evidence of increased internal business activity is provided by various series of statistics. The value of bank debits shows a seasonal falling-off since December, but is 18.1 per cent, higher than in January, 1935. Railway revenue for the January period is 6.1 per cent, higher than in that period of last year. The volume of building activity shows an increase from an already greatly improved level, judging by the value of building permits issued in the larger towns. Sales tax collections in January constituted a record, indicating an increase in the volume of wholesale transactions in December as compared with sales in that month of 1934. Mortgage registrations and land transfers showed exceptionally good totals for a January month, the aggregate values being as much as 59.8 per cent. and 35.5 per cent, higher than the January, 1935, totals. Totalisator investments in January totalled £665,073, as compared with £573,828 in January, 1935, an increase of 15.9 per cent. The high yield of the sales tax, the increase in railway revenue, and the increase in totalisator investments all provide evidence of greater spending during the festive season. Banking

The average weekly value during January of debits to individual customer's accounts (excluding Government) with the trading banks was £13,544,621, a fall of 12.3 per cent, as compared with the figures for December. This fall is, however, a purely seasonal one, bank debits being normally considerably lower in January than in December. The January average is.higher than was recorded in that month during any of the previous five years, being as much as 41.1 per cent, higher than in January, 1933.

The average amount of fixed deposits with the trading banks shows some diminution from the peak.levels recorded during the middle months of 1934, the January, 1936, figure being 7.6 per cent, lower than the record total of £41.767,406 in July, 1934. Nevertheless, an upward tendency in fixed deposits has been manifest during the last few months, the monthly average rising from £36,629,005 in March, 1935, to £38,586,936 in January, 1936, by a practically unbroken series of gradual monthly increases. Deposits on current account increased sharply between December and January, the monthly average rising from £24,546,562 in December to £25,913,664 in January, an increase of 5.6 per cent. This increase is not of abnormal magnitude, and is attributable to the normal seasonal increase in funds consequent on returns coming to hand from sales of the season's farm produce—notably wool. While the increase since December is no larger than one would expect, the level of funds on current account with the trading banks has been exceptionally high for some time past, with the result that, despite a lowered volume of fixed deposits (as compared with peak levels), the total amount of deposits has reached the total of £64,956,400, which total has been exceeded only once (in August, 1934), since these statistics became available on a monthly basis (in 1928). Government deposits with the trading banks (included in the above total) averaged £455,800 in January, 1936, as compared with a usual January average of about £2,000,000 before the establishment of the Reserve Bank.

The average- amount of outstanding advances was £45,781,785 in January, 1936, as compared with £46,890,090 in December, 1935. A seasonal fall in advances is usually recorded, between these two months, tlhte fall on this