TRADE CONDITIONS

Hokitika Guardian, 17 February 1932, Page 8

TRADE CONDITIONS

I’ARTICUEARLY ENCOURAGIXG

RETURNS FOR DECEMBER

AUCKLAND, Feb. 16

The volume <ot' bank debts placed to individual customers’ accounts sho v s an unusually large- increase over November in spite of a decrease from December, 1930, which may be partially affected by influences other than a decreased volume of business transacted, according to the ‘\Wonthly Abstract of Statistics." The proportions of advances to deposits and of free to fixed deposits indicate a movement towards more natural ratio*.

Trade conditions were particularly encouraging for the month, and the visible balanoe in favour of the Dominion records a further marked improvement. For the twelve months just ended, this balance in terms of New Zealand currency stands at approximately £8,500,000, a s against £195,000 for 1930. Heavy shipments of practically all the principal primary went forward during the month under review. The local wool sales were generally disappointing, ■ but the latest advices from overseas suggest a brighter outlook. The frozen meat market appears to be ovcrsupplied, and .although the volume of exports remains heavy, London realisations of late have been disappointing. Similarly, with dairy. produce, a weakened market has been a feature of the month. Production, however, still maintains a new record for the total output of butterfat, although cheese is lagging behind last year’s total. FINANCIAL circles brighter. Financial circles were brighter during the month than has been the experience of late. The most recent returns of railway statistics do not cover the holiday period, and therefore reflect the usual pre-seasoua] slackness in passenger traffic, although goods traffic increased slightly. Overseas shipping was comparatively fairly idle Migration statistics covering the twelve months ending in December present some unusual features. The building industryshows no sign of improvement, and, on the contrary, reached a new low level. Bankruptcies during the year, as inigh 1 - be expected, increased appreciably, while social statistics reveal a heavy decline in the number of 'marriages celebrated during the year. Butter gradings for the month of 'December, 191, bring the peak of the production season for 1931-32 to a level 8.9 per cent above that, established for a- similar month of hist year, and thncreates a new record of output. For the live mouths of the curi-eid reason the production of butter has <■=.;-[’•'‘d definitely in advance of laolj-.'.1. tic production for the cimmluf.ive )»•• '•> • showing an increase of 7.8 per cent. Cheese did not quite mamba in the 'eve] attained last year for December, and the total quantity received into grading stores shows a deficiency of 1.4 per cent. For the. cumulative period of five months the current season’s supply is 6.2 per cent below that for a corresponding period of 1930, OVERSEAS TRADE. The marked improvement in the export trade of the Dominion exhibited last month was developed still further dming the month under review. The total value of exports during December was 18.8 per cent ahead of .that for November, and for the second consecutive month showed an improvement over the corresponding month of 1930. in this instance to 'the extent of 12.4 per cent. December is usually the peak of the export season for the Dominion's primary produce, and, although the overseas markets have not been very encouraging of late, the demand for nearly all the principal products has evidently been considerably heavier than was the case 12 months ago. Compared with December, 1930, exports of wool have decreased in quantity very slightly, but have increased in value to the extent of 7.4 per cent. Frozen lamb shows a heavy increase in quantity shipped abroad, while the total value improved hv 25.3 per cent. Frozen mutton was considerably lower in demand than lamb, hint, even so, showed an increase of 10.9 in the total value exported. There was an increase of 49.5 per cent in the quantity of butter .shipped overseas, the corresponding increase in value being slightly less. 48.8 per cent. Cheese, on the other hand, suggests an appreciable decline m overseas requirements. Compared with November, imports in the month under review declined by 12.9 per cent, and, with allowance for the exchange factor, hv 41.8 per cent, in comparison with December, 1930. In '"lies of v ew Zealand currency. the Dominion had a favourable visible trade balance for the month of £1.400,000. This represents a vast improvement on the .position for December, 1930, when a trade balance of E 300,000 against tin Dominion was recorded. BANKING DETAILS. The •Christmas season is usually expected ‘to provide a considerable impetus to general business activities, and it would appear from the statistics <*l hankdebits that tin* 1931 season was no except ion (o ‘the rule. Ihe prop nI mu measurement of the holiday stimulus amounted to 15.1 per rent, over Die previous month. The total lor December was 16.8 pel rent below lll'' 1 "'I ril|.,lii i,l i eriiTi'spundillg moil' h I.' 1 " , bill | lie .-Minnie of hank <* “U | | i I'gely affected by lie )(...,! in prices obtaining in lik'd. |'1 11 ■ volume 'll shows little movement, from the previous month or from December, 1939. Tie ; ■licq comparison leproseuils an im i' 1 " 1 '' of, J..2 per cent and the second a dear • r