UPWARD TREND IN IMPORTS

Press, Volume LXXII, Issue 21940, 14 November 1936, Page 16

UPWARD TREND IN IMPORTS

Business Statistics For September EXCEPTIONAL EXTERNAL ACTIVITY Statistics of business conditions in September reveal exceptional activity in external trading in commodities, the upward trend in imports continuing while exports were abnormally heavy for this time of the year, says the Abstract of Statistics for October. Internal trading has also been particularly active, judging by the fact - that salestax collections increased from £232,237 in July to £252,621 in August, and, further, to £254,669 in September, which is a record amount for any single month. A slight easing in building activity is indicated by a tau of 9.6 per cent, in the value of building permits issued, as compared witn the total in August, The number of unemployed males on September 26 was 49.419. as compared with 50,847 on August 29, and 60,344 on September 28, 1935. Banking statistics for the montu show a seasonal decline in the volume of cheque transactions and in deposits, a slight increase in advances, and a further increase—contrary to seasonal tendencies—in note circulation.me average net note circulation in September (£7,619,418) constitutes a record. recent increases in wage rates being no doubt an important conti ibuting factor. The excess of deposits over withdrawals m the post Office Savings Bank in the first six months of the current financial yeai was £1.757,964. as compared with £1,458.574 in the same six months ot 1935-36. . . ~. -p. The Live Stock Division of the Department of Agriculture reports that during Seotember the weather was very changeable with much rain, resulting in stock going hack a little. Lambing is well forward, and good percentages are anticipated- stock generally is in good health and condition. All classes of cattle are bringing good prices, and there has been a keen demand for horses. .. A pre-estimate of wool production in the 1936-37 season gives a total of 295,000,0001 b on a greasy basis, including an allowance for wool on skins, sliped wool, etc., in addition to the clip. The actual yield last season (1935-36) was 316,500.0001 b: but last seasons production (the highest on record) was swelled by the fact that owing to bad weather shearing was abnormally late, sheep carrying a heavier fleece than usual. Assuming a normal season without undue interruption of the shearing through bad weather the clip will be, as indicated above, somewhat lighter in the current season. Recent Australian wool sales have been optimistic in tone; while a report recently issued by the Imperial Economic Committee confirms that in June, 1936, in the mam selling centres were very small. External Trade Trade returns for September reveal exceptionally high totals of both exports and imports for a September month; the value of imports being the highest, in terms of New Zealand currency, in any individual month since September, 1929. Total trade during the month was valued at £8.403,810; exports being valued at £3,980,585, and imports at £4,423,225; so that an excess of imports amounting to £442 640 emerged as a result of external trading in commodities during the_ month. In August, too, an excess of imports was recorded (£847,557), in keeping with the normal tendency at this time of year. , , Although imports have exceeded exports in value during August and September, this result can be attributed to a continuation of a buoyant tendency in imports.. Exports have been exceptionally heavy for this time of the year, the volume and value of butter exported (248.049c\vt valued at £1,611,731) being exceptional for a September month, while exports of meat (particularly lamb) were abnormally heavy. Banking The average weekly value of bank debits to individual customers’ accounts during September was £13,631.191, a decrease of 3.9 per cent, below the average in August, but an increase of 6.2 per cent, over the average of September of last year. Both free and fixed deposits with the trading banks were lower than in August, the seasonal peak in respect of free deposits having been reached in April, since which month successive monthly recessions have been shown by the statistics. The average amount of free . deposits was £26,366,247 in September, as compared with £28,916,815 in April, a decrease of 0.8 per cent. Fixed deposits reached their seasonal peak in May, the average amount on deposit in that month being £38,577,859, since when there have been successive monthly decreases, the September average being £36,031,498. Advances, on the other hand, have recently shown a rising tendency, the average amount of outstanding advances being £45,762,885 in September—the highest figure since January. The movements shown in advances and deposits are in keeping with the usual seasonal tendencies in the slack period of the year, the ratio of advances to deposits normally rising in the winter and spring months. It is noteworthy that, despite the recent trend, the ratio of advances to deposits (72.38 per cent, in September) is still considerably below the level jn the years 1928 and 1929. The outstanding feature of banking statistics for September is the fact that a new record figure was reached in respect of average net note-circulation. The average net note-circulation in September was £7,619,418, as compared with £7.566,949 in August and £7,208,514 in July. Until December, 1935, when the monthly average was £7,321,840, the average net note-circulation had never exceeded £7,000.000 in any one month: but since March, 1936, the monthly average has been consistently above that figure, with, in recent months, a definitely rising tendency. The recent figures reflect the increase in wage rates brought about by legislation and the decrease in unemployment, while increased pension payments, etc., would also contribute to the greater circulation of bank-notes. Overseas Funds The net overseas funds of banks on account of New Zealand business fell from £38,720,028 on August 31 to £34,028,339 on September 28. An excess of commodity imports was recorded for the second month in succession (as is normal at this time of the year), which would tend to reduce trading banks’ overseas balances, while the net overseas funds of the Reserve Bahk fell from £19,799,236 on August 31 to £16,835,564 on September 28. The latter fall has been accompanied by a decrease in the demand liabilities of the bank to the State; while advances (which to date have been entirely to the State) had increased from £65,118 on August 31 to £1,795,350 on September 28. The latter increase is in consequence of the initiation of the guar-anteed-prices plan, full payment being made from the dairy industry account of the Reserve Bank when the produce is placed on shipboard, the recoupment of the account from the proceeds of the sale of such produce being necessarily soon weeks later. .