N.Z. ASSETS OVERSEAS

Grey River Argus, 25 January 1943, Page 2

N.Z. ASSETS OVERSEAS

A BIG INCREASE CHRISTCHURCH, Jan. 24. New Zealand's overseas assets had increased from £8,600.000 to £40,000,000 during the past three years, putting the country in a very favourable position to provide for imports when they become available at more favourable prices, said the Minister of Supply (the Hon. D. G Sullivan) in a statement reviewing recent economic trends. “We can also meet, without fear or default, obligations incurred overseas,” said the Minister. “It is notable that over £11,000,000 sterling of the’ debt incurred n the Memorandum of Security Agreement has been oaid as the charges came due. At March 31, 1942, the New Zealand public debt in London was less by £3,000,000 sterling than it was at the same date in 1939. I

“Thus New Zealand, besides making its magnificent contribution to the fighting forces overseas, has met the greater part of the debt that has come to charge overseas for the maintenance of those forces, has reduced that part of the public debt domiciled overseas and has accumulated large overseas assets to meet future requirements.” Mr Sullivan said that trading bank deposits had increased from £67.000,000 in September, 1939, to £94,600,000 in September, 1942. These figures included both current and fixed deposits lyding in the trading banks. On the other hand, while trading bank deposits had increased by £27,000,000, trading bank advances had decreased from £53.600,000 in September, 11939, to £42,400/000 in September, 1942. In other words, farmers, traders and others were, in September, 1942, £11,000,000 less in debt to the banks than.they- had been three years previously. Referring to price movements, the Minister said that comparing August, 1942, with August, 1939, the index number of wholesale prices increased by 34 per cent. The main reason for this increase was a rise of 49 per cent, in imported items. This increase was largely offset by the fact prices of locally-produced items increased by only 13 per cent. Obviously, the rise in import prices was outside New Zealand control, but the prices of locally-produced items had been kept down by various measures of stabilisation initiated by the Government.

During the same period retail prices, often referred to as the cost-of-living index, had increased by only 12 per cent. The export price index number had risen by 20 per cent., and wages rates had risen by 13 per cent.