STATE OF TRADE

Dominion, Volume 27, Issue 187, 7 May 1934, Page 2

STATE OF TRADE

Signs of Improvement BANKING POSITION Some Favourable Factors Signs of improving business conditions in the Dominion are recorded by, the Government Statistician in his survey for March and for the twelve months ended March 31. The value of the export trade of New, Zealand (excluding specie) during the March year just past was £46,042,570 in New Zealand currency, equivalent tu £36,834,000 In sterling, an increase of £8,532,406 in New Zealand currency, or of £4,157,000 in sterling,-, as compared with the totals of 1932-33. Building activity, stimulated by the Unemployment Board's subsidy scheme, was on a much higher level in 1933-34 than in the previous year, the value of permits issued in the larger towns during the past twelve months totalling £3,363,869, as compared with £2,079,982, during the previous March year. , Railway finances improved substantially during the year, while both goodi and passenger traffic were on a substantially higher level than in 1932-33. _ Imports during the year ended Marcli 31 (excluding specie) were valued at £21,477,553, equivalent to £26,136,000 in New Zealand currency and to £20,908,000 in sterling. The value of inw ports expressed in New Zealand currency was £1,077,000 higher than ii the previous financial year; but, in sterling values, £1,141,000 lower. The value of commodity exports exceeded that of imports of merchandise during the year; ended March 31, 1934, by £19,907,000 in New Zealand currency, or £15,926,000 on a sterling basis.. The Banking Position. I The banking situation at the close of the financial year shows some favourable features and some not so favour-, able. The total amount held on deposit at the end of March was £64,752,395— -a record figure. Of this total £23,543,8241 was held on current Account and £39,903,119 on fixed deposit, Government dc-t posits accounting for the remainder. Thei relatively high ratio of fixed to fieei deposits is in itself an unfavourable sign; but deposits field on current ax count have increased materially in recent months; the present total being the highest recorded for over throe years past. The high ratio of fixed deposits is not so much due to a relatively low level of free deposits as to an exceptionally high total of fixed deposits. Advances at the end of March totalled £41,895,020—an exceptionally low figure for recent years. The average weekly value of bank debits to individual customers’ accounts during March (£15,202,924) was maintained at almost the same -level as for; February, thus following the usual seasonal trend. , ;

Deposits (£63,626,107) showed an in* crease of £1,178,662 over the February average, this being due to a further heavy increase in demand deposits, and to a smaller increase in deposits bearing interest. The ratio of demand deposits to interest-bearing deposits was 57.06 per cent, for,March, and it,would appear that the trend is now upward. The fall in the volume of bank advances so apparent during recent months received a definite check during the month under review, the average for March (£41,420,837) actually showing an increase of £367,579 over the previous month’s figure. The ratio of advances to deposits (65.10 per cent, for March) nevertheless shows a further, decrease, brought about by the greater increase in the volume of deposits. For the second month in succession both mortgage and land transfer business showed substantial increases. The total value of mortgages registered during March was £827,704, 16.9 per cent, higher than in February, while the consideration in respect of land transfers registered during March was £987,552, an increase of 11.9 per cent, over the February figure. Export Prices Higher. Export prices generally were substantially higher in March, 1934, than in the previous March, the all-groups index number showing an increase of 33.0 per cent, as compared with the figure a year ago. This result is mainly brought about by the substantial rise in wool prices, and, to a lesser extent, in meat prices also. Although wool prices show, recessions at the latest sales as compared with the peak prices obtained at the January sales, the wool-selling season has, on the whole, been very satisfactory to growers. The total realisations at sales to date fall little short of £10,000,000; and when the final clear-ing-up sales are completed it is anticipated that this total will be slightly exceeded. Although the general export price index number has moved upwards steadily during each successive month since May last, the index number for the dairy products group, which recovered somewhat early in the current export season, has since -fallen to the lowest level recorded in recent years. Railway statistics for the period ended March 3 reveal an increase of 80 per cent, in the number of passenger journeys as compared with the February period. The openifig dates of the schools and colleges fall within the March period, and this no doubt accounts for part of the increase in passenger journeys. The tonnage of goods carried shows an increase of 13 per cent, over that carried during the previous period, while the excess of working revenue over working expenditure is £13.083 higher than in the February period.

Overseas and coastal shipping word both busier in March than in February* the.outwards overseas tonnage of cargo carried being 6.1 per cent, higher than in February, while inwards oversea? cargo carried increased by 24.6 per cent, as compared with February.