NOTES OF THE DAY

Dominion, Volume 16, Issue 89, 11 January 1923, Page 6

NOTES OF THE DAY

The banking figures of the December quarter show that steady progress is being made in a return towards normal financial conditions. As compared with the position a year ago, deposits in the aggregate show only a slight increase, but advances show the substantial ieduction of well over four millions. No doubt this reflects a fairly general easing of the difficulties under which traders were, labouring trtelve months ago, and an improvement in* the financial position of primary producers. From the point of view of trade and industrial improvement it is less satisfactory that fixed deposits have increased rather substantially, while free deposits have declined. In their total effect, however, the figures offer evidence of progress in recovery which now seems likely to be maintained.

News from the Near East continues to wear an unfavourable aspect. It is obviously not with peaceful intent that the lurks arc massing troops in Eastern Thrace. According to one of to-day s messages there are now 20,000 Turkish troops in that region; instead of the 8000 gendarmes allowed under the terms of the Mudama Convention. The supplementary forces, it is stated, have been recruited m Thrace by Rafet Bey, but it is not unlikely that, most of'them are trained soldiers. It was reported some time ago that Kcmalist soldiers were crossing into Thrace in the guise of civilians. In the circumstances it is a matter for congratulation that the Greeks are establishing themselves' strongly on the western bank of the Maritza, th ' : river which separates Eastern and Western Thrace. There does not appear to be any doubt that if the Turks attempt by a sudden coup to extend their foot ho--. in Europe they will find themselves strong y opposed. Should events take that course, the Greeks are not likely to be left long unsupported by other Balkan States.

The material fact brought out in the proceedings of the Reparations Commission reported to-day is that the British representative (Sir John Bradbury) stood alone in opposing the policy to which France is committed. Italy and Belgium apparently are content, or at all events feel it necessary, to follow the French lead. this is unfortunate, though perhaps inevitable, and it suggests that no great weight can be attached to Signor Mussolini’s declaration on the eve of the Premiers’ Conference that Italy would co-operate only in a practical policy likely to yield results. In dissenting from the majority deeision to declare Germany in default in respect of coal deliveries, Sir John Bradbjjry took an obviously reasonable stanU. In effect he declined to agree that a detail failure on Germany s part provided anv justification for • instituting extended, measures of contiol which are likely at best to do far more harm than good. It is obvious that the Reparations Commission must be hopelessly divided so long asx France adheres to her present policy.

In Australia there appears to be no such enthusiastic approval of the Commonwealth Bank and its achievements as some Labour spokesmen have expressed in this country. Some recent observations by the Bank of New Zealand chairman (Sin George Elliot), in whic he pointed - out that the Commonwealth Bank was advantageously placed in paying no taxes, and in other ways, are endorsed, or instance by The Australasian. The Commonwealth Bank, it observes, cannot claim, like the Bank of New Zealand that it has sacrificed a proportion of its-profits in order to tide producers and then associations over a crisis. “It (the Commonwealth Bank) has joined in financing Australian wheat pools-but with a Government guarantee behind it to make the business safe. 'lt prdbably has • - n pegging the exchanges, having been helped to do so by the handling of the proceeds ofi gold exported and of Targe I'ederal and btato business Most of the profits it reports have come from wai m Government business. It has to be shown that they will continue when times are normal.” ’