The Hawera Star SATURDAY, JUNE 21, 1924. AS SEEN BY BANKERS.

Hawera Star, Volume XLVIII, 21 June 1924, Page 4

The Hawera Star

SATURDAY, JUNE 21, 1924. AS SEEN BY BANKERS.

Delivered every evening by 5 o'clock in Hawera, Manaia, Okaiawa, Elth&m, Mangatoki, Kaponga, Awatuna, Opunake, Otakeho Manutahi, Alton, Hurleyville, Fates, Waverley, Hok'oia, Wkakamara, Ohangai, Meremere, Fraser Hoad, and Ararats.

People look at a country and its economic conditions through various spectacles, but very lew are in a position to know sufficient of the innumerable facts and influences near and far which affect a country’s conditions and which it is necessary to know before making decisions. It is but natural that people should look at conditions from their own point of view—the farmer from his, the worker from his, the shopkeeper from his, and so on —but we do not think that anyone has a better opportunity than the banker for arriving at the soundest conclusions. The banks have dealings with all kinds of business, and it is business that soon discloses strength or weakness. ..The deposits, indicate year by year the prosperity or otherwise of various institutions, while the requests for advances, which it is unwise to accede to without full knowledge of security and prospects, also give the banker an insight into affairs which the general public can never gain. The reviews of the conditions in this country presented at the annual meetings, of the Bank of New' Zealand, in which the State holds a considerable interest and representation, should therefore be regarded as very important by -the people throughout the Dominion. At yesterday’s annual meeting of the proprietors of the bank, the review was made by the acting-chairman, Mr. William Watson, who has for many years been closely associated with the bank, and who is a man of very wide knowledge and sound judgment. His comments are very interesting, and merit careful reading by the public. He dealt with subjects of great importance to the Dominion, and showed how very complex and difficult are the problems with which not only this country but the whole world is faced. Mr. Watson dealt at length with the question of currency and exchange, matters which exporters and importers find it difficult to explain. It is to be hoped that Mr. Watson’s remarks will help people to understand the problem better and to appreciate its difficulties. The comments on land were, along lines consistent with those of' previous, addresses by Sir Harold Beauchamp and Sir George Elliot, and it is clear from their statements that bankers have for long regarded land and property values, rural and urban, as too high, leading to high rentals in one form or another and retarding progress and prosperity. The money market, influence of local body loans, note issue, the country’s industries, and business conditions were other subjects upon which interesting comment was made. Perhaps the most encouraging parts of Mr. Watson’s statements were those upon advances and the outlook. The bank was able to lend about £1,000,000 in advances more than was lent in the previous year, which we may accept as indicative of an improvement, in the securities offering; in other words an improvement in the position '■'f those desiring advances lias been effected. The effects of the de-

were very severe, and the banks were .compelled, in the interests of the country as a whole and in order to stop continued inflation, to shorten advances. This action naturally resulted in many people feeling the pinch, but we believe that it was very necessary, for borrowing and mortgaging had reached an abnormal and an unhealthy state. In an honest endeavour to save borrowers from ruin, the moratorium has been extended by the Government from time to time, but the opinion of those most closely connected with financial matters is that the time has come when the moratorium should be lifted and a return made to pre-war- methods. It is regrettable that some people will suffer severely when the protection of the moratorium ceases, but there is apparently no satisfactory means of saving them, while to continue it involves other and far-reaching difficulties. Mr. Watson’s remarks upon the moratorium were emphatic. He was able, however, to conclude his address in a- hopeful tone. The immediate outlook can, he believes, be regarded on the whole with equanimity, but warnings were given that economy must be practised and there must be no going slow by the people in their working years. We published sections of Mr. Watson’s lengthy address yesterday, and other portions appear to-day. We hope that readers will note carefully what he said, and that, in whatever direction they find that they have an opportunity of assisting towards the Dominion’s progress and prosperity, they will not fail to take it, for nation’s strength depends upon all sections of the people doing their part to the best of their ability; it is, in fact, the aggregate result of individual activities.