MONEY AND TRADE.

Hawera Star, Volume XLVIII, 11 August 1924, Page 7

MONEY AND TRADE.

DOMINION’S BRIGHT OUTLOOK. BANK CHAIRMAN’S REVIEW. Referring to the prospects of the Dominion, Mr. W. Pomber Reeves, chairman of the National Bank of New Zealand, 'addressing! shareholdeijs at the annual meeting, said the trade of New Zealand as a whole justified the hopeful anticipations he had expressed at the last meeting. From almost every point'of view the year ended last March had been the brightest since the setback of 1920; the country had made a long stride towards complete recovery. Public finances were healthy, produce had phenomenal advance in wool, and producers—with few exceptions—had made progress towards repairing the losses of 1920-21. With excellent prospects of that progress being maintained, confidence had returned and the future was 'being faced with courage and hopefulness. The one . exception was the unsatisfactory position and prospects of the meatfreezing industry. The general improvement was reflected in the figures of the banking business done in the Dominion.

“Throughout the year,’’ he continued, “the demand for money has been continuous, and as far as resources admitted those demands had the fullest consideration, especially where they were to be used for development and increase of production. Rates remained unchanged, notwithstanding the increase fy,om 3 per cent, to 4 per cent, of English bank rate in July last. Altogether the financial position is sound. The fact that the banks doing business in New Zealand are profit-making institutions has sometimes made them the mark of local criticism. But is it a bad thing for New Zealand that her banks—in the largest of which her people through the Government hold a very substantial interest—iare strong?” j The chairman then went into details regarding the exports and imports of the Dominion. He spoke of the recovery in wooi. “How is this wonderful recovery to be explained?” he asks. “In a sentence. In 1921 wool was supposed to be in superabundant supply, but to-day demand has overtaken supply. All classes are now quite double the average values of 1914, and this great advance has taken "’ldle Bawra was marketing the bales which it took over in Of the half-million odd bales sold at auction last season in New Zea--o 1 V < l\o G T rmany bou - ht 150,000, France oO,(XX), Italy (a new competitor) 10,000 Japan bought lightly in New Zealand' but heavily in Australia, evidently competing for the finer wools. India was another new competitor, but America only took 16,000 bales, or less than one-third its purchases of the previous year.” ' r

Reference was made tq the fluctuations in the market prices of dairv produce. “Producers attribute these fluctuations in part to irregularity of arrivals in London, and, with a view to regulating shipments and stabilising prices a Dairy Export Control Bill was passed in the last session of Parliament. and a producers’ delegation has visited America and is now in England on a tour of investigation. Recent statistics indicate that European countries are greatly increasing their exports to Britain. The economic law is operating; high prices have attracted supplies, and it appears reasonably certain that large supplies and reduced purchasing power will bring in an era of somewhat lower values. Should this prove to be the cafe, New Zealand can meet the situation and maintain its pre-eminence as a dairying country by subdivision of ?and, more intensive working of the area occupied, herdtesting, and improvement, and a reauction of production, costs, in every way possible.

‘The foreign trade of New Zealand has had a good year,”- continued Mr. Reeves. “This is especially true of ™® tra . de with the Mother Country. hile in 1923 we took from Great. Britain goods-worth £24,000, OCX), Great Britain took from us produce of no less vaiue than £37,000,000. The balance of trade, therefore, is well in our favour; so long las prices, .continue satisfactory we could scarcely ask for thmgs to be much better. To put it plainly, the figures show that while we are an excellent customer of the Mother Country, she is an even more excellent customer of ours. Imperial trade and its developments are topics very much before the public just now. Into the rejected proposals of the past imperial Conference I need not <*o they would not have affected the greater exports of New Zealand one wav or the other. The attitude of New Zealand on their rejection has been defined in dignified and reasonable terms in the speech with which the Governor-General opened Parliament. One need say nothing more on that.”

, r * Reeves diW attention to the suggestive und thoughtful observemade by Mr. Baldwin on June fi d " nn S le debate on preference in the House of Commons, in which the Unionist leader referred to the necessity for investigating the whole question of Empire development, including the discrepancy between the prices received by the producers for their goods and the prices paid by those who consumed them. He spoke of Mr. Baldwin’s query as to whether it was not possible to enter into some arrangement with the Dominions by which their foodstuffs could be obtained, brought into this country at cost price! and distributed with the least possible margin. This opened up very large questions; still, things might move hi that direction in the future. At any rate. Mr. Baldwin’s sentences deserved full consideration overseas. The same could be said of a statement bv a Unionist leader elsewhere on the need for providing cheaper and speedier communication between the Dominions and the Mother Country, a practical question of most vital importance. Furthermore, it was encouraging to note that the necessity for a permanent Economic Imperial Committee was at last being recognised by political leaders here.—Wellington Post Correspondent.