Evening Post. FRIDAY, DECEMBER 3, 1915. A CHEERFUL OUTLOOK

Evening Post, Volume XC, Issue 134, 3 December 1915, Page 6

Evening Post. FRIDAY, DECEMBER 3, 1915. A CHEERFUL OUTLOOK

The addresses delivered from time to time to the shareholders of the Bank of New Zealand by Mr. Harold Beaucbamp, chairman of directors, have always been of great general interest. The reason is that he places a liberal construction upon his function on these occasions, and instead of pedantically confining himself to the special affairs of the Bank and the issues that normally arise between the trustees of such an institution and its shareholders, he takes the broadest possible view, and treats all the commercial and financial interests of the Dominion as his province. This liberal construction is perfectly philosophical, since the welfare of the Bank is just as dependent upon the general commercial and financial conditions of the country as it is upon the care and ability of its directors. The result is also fortunate for the public, since it gives them once or twice a year an illuminating expert survey of the things that touch the material prosperity of the Dominion. Since the outbreak of war these addresses of Mr. Beauchamp have acquired a special interest. There is not a. financial or industrial problem in any part of the world upon which the operations of the war have not exercised a more or less profound influence. And, conversely, finance is exercising the profoundest possible influence upon th* progress of the war, and may possibly prove to be the determining factor. "All the circumstances," said Mr. Beauchamp, in his address to the half-yearly general meeting of the shareholders of the Bank of New Zealand this morning, "seem now to point to the conclusion, that the war is to bo a war of exhaustion, and that victory ultimately will be on the side of the combination possessing the greater capacity for endurance." In this grinding competition "the financial might of Britain has," as Mr. Beauchamp says, "been a theme of constant encouragement and confidence," but it is hardly necessary to say that he says nothing to foster the spirit of foolish boasting or reckless extravagance. On the contrary, he mingles with his cheerful outlook the strongest possible plea for caution and economy. He does not hesitate to say that "the greatest optimist and the truest patriot is one who proclaims in no uncertain tones the supreme importance of the utmost caTe in the conservation of the national vesources."

No apology is needed for this note of caution. It is indeed exactly what the country and the Empire need. In Great Britain, as we are reminded by the cabled report of his address to a conference of Labour delegates, Mr. Asqoith has preached the gospel of economy with his usual lucidity and force. But the critics complain that the practice of his Government has not squared with the excellence of its leader's precepts, and it is beyond question that Germany's superior economy has heavily discounted the immense superiority of the AUiei in resources. In this country our public men have hardly yet got even so far as preaching economy, and our gratitude to the Chairman of the Bank of New Zealand should be all the deeper on that account. The gospel is specially needed in this country because of the astonishing prosperity which the war has brought to our great producing industries. The eloquence of the figures which the Chairman quoted in his address to the annual meeting six months ago is surpassed by those now adduced. For the year which ended oa 30th September last the exports reached the enormous total of £29,710,000 —an advance of £5,951,000 beyond the figures of the previous year—while the imports dropped from £21,057,000 to £19,786,000—a decrease of £1,271,000. The result is a net improvement in the Dominion's financial position of £7,222,000. More than £3,000,000 o£ this amount is accounted for by the increased prices of our three principal exports—wool, frozen meat, and dairy produce —apart from the growth of production. No wonder that some of those who are thus making fortunes from the necessities created by the war speak uneasily of the special profits as bloodmoney, or that the democracy does not i think that the mere application of the income-tax to income derived from land sufficiently meets the case. One effect of a surplus of exports over imports amounting to £9,924,000 is reflected in the banking returns. Deposits have increased by £4,153,300 during the year, while advances have decreased by £1,113,700. " This," says Mr. Beauchamp, " represents an improvement of the position between the public and the banks, amounting to upwards of £5,250,000 during the year. It is safe to say that this is an unprecedented movement in the banking experience of the Dominion. Never before has the public been in such an easy financial position, or in command of such ample resources." One significant point to which the Chairman called attention in his address to the annual meeting still persists, and that is the disproportionate share of the increase which is provided by the non-interest-bearing deposits. More than threequarters of the increase in deposits during the year is of this character. It is not merely a great surplus of exports, but, as Mr. Beauchamp points out, a slackening of industrial enterprise that these figures indicate. With more than £17,000,000 of deposits not bearing interest, it is not surprising that the Public. Works loan last month was over-sub-scribed nearly 100 per cent. So far New Zealand's prosperity has been enhanced by what to the Empire and the world at largo has been a great calamity, but our people ought to bear in mind that there must be a severe pinch when the war bills come fully in, and they should b* preparing by wi*,, economic for i-h« day of reekanino.