The Franklin Times PUBLISHED EVERY MONDAY, WEDNESDAY AND FRIDAY AFTERNOON. MONDAY, MAY 20, 1935. DOMINION FINANCES.

Franklin Times, Volume XXV, Issue 57, 20 May 1935, Page 4

The Franklin Times PUBLISHED EVERY MONDAY, WEDNESDAY AND FRIDAY AFTERNOON.

MONDAY, MAY 20, 1935. DOMINION FINANCES.

Office and Works: ROULSTON STREET, PUKEKOKE. 'Phone No. 2. P-0> ® ox “We nothing extenuate nor aught set down in malice.”

THE Government Statistician is neither an optimist nor a pessimist, he deals with figures and has no axe to grind by making them appear better or worse than they really are. His statements' in the Abstract of Statistics are therefore of special value. The April number of the abstract deals with the figures for the year ended March 31. The general summary of the position says: “The year just ended has seen further steady progress towards normal economic conditions in this Dominion —principally in the direction of internal adjustments to an external trading situation which had already improved to a marked extent during the previous financial year.” Figures which follow give the justification for this statement. We first have the fact that there is a Budget surplus of about £1,500,000, as compared with a deficit of £709,000 in the previous year. This reveals a substantial improvement, even allowing lor the fact that the revenue included some non-recurring items. Exports amounted to just under £45 millions, a decrease of £1 million, or 2.4 per cent, on the previous year. This small fall is surprising considering the drop in the value of wool, but this was largely counterbalanced by an increase in the value of meat exported. Imports amounted to £32£ millions, an increase of 24.6 per cent, over the

total for 1933-4. The increase is definite evidence of increased economic activity in the Dominion. The surplus of exports was £12,350,395. Converted into British currency this sum might not be quite enough to cover our interest payments in Britain. But the overseas assets of trading banks on account of New Zealand business are I shown in the latest return to total £24 millions and the sterling exchange holdings of the Reserve Bank £22i millions, both measured in New Zealand currency. These figures show that the rumours that the exchange rate will have to be increased shortly have absolutely no foundation. The Australian position is not so favour- ! able, but big reserves were built up ■ in London during the boom in wool and, though we cannot quote recent ; figures, it seems most improbable that i an increase in the exchange will be i necessary this year. The banking [ figures show that fixed deposits, : though still very high at £36A millions on March 25, were £3J millions, ; or 8.6 per cent, lower than a year j previously. Current deposits at £25 • millions seem greater than would be accounted for by the seasonal influence which lends to raise them in March, or to the upward trend of business activity. Probably the owners ! find it hard to find profitable investvnenls. The fact that much money is awaiting investment is shown by the increased prices of Government securities and ordinary shares. Internal transport figures reflect increased busi- : ness activity. The railways carried more goods and passengers than in ■ the previous year and coastal vessels j carried more cargo. Motor vehicles i licensed rose from 197.285 to 209,4 62, j an increase of 6.2 per cent. Finally j the number of unemployed in .March was 50.345, a decrease of J 9 per cent., j compared with lost year. Mortgages j registered in the year ended March tot- j ailed £l2 millions, compared with £8 j millions in the previous year. Ids- < charges of mortgages represented a i

total of £13,762,000 compared with

£l3 millions a year earlier. The last two financial years have been the only

occasions since the nineties of last century that discharges'of mortgages have exceeded registrations. It is thus evident that the low prices rul-

ing for produce has shaken the confidence of investors in land securities. The figures quoted definitely show -that business is improving, and it rests with the public whether it will continue to do so. There is progress now, but it cannot be very rapid; still that is better than a policy of boom followed by the inevitable burst.