HALF-YEARLY MEETING.

Northern Advocate, 8 December 1916, Page 1

HALF-YEARLY MEETING.

THE CHiAIRMcA'N'S (ADDRESS.

The half-yearly meeting of the Bank of New Zealand was held in Wellington to-day. The chairman (Mr Harold Beauchamp), in the course of liis address to the shareholders, made a sympathetic reference to the death of Mr Martin Kennedy, one of the directors, and he also reviewed at considerable length the geflGval financial position as affected by tho' war. .Dealing with the New Zealand position lie said in this Dominion producers continue to experience a period of phenomenal prosperity, and our staple products -ire realising prices which, it may be said, have never before been obtained in the history of the country. Since early in 1915, the Dominion's meat output has been purchased in the interests of the Imperial Government on a fixed and remunerative basis as to prices, and the arrangement has recently been renewed till the end of the war on somewhat more favourable terms to the producer. A portion of the cheese output for last season was also purchased on behalf of the Home authorities, and -arrangements have recently been made to. similarly take over the Dominion's wool clip for the coming season. Throughout the whole country an exceptionally favourable season has been experienced, and the yield of every description of produce promises to be bountiful. It is to be feared that the high yield for meat is inducing prodigality in the slaughter of stock, and there is reason *o apprehend that our flocks and herds are being reduced in numbers to such an extent that the adequate stocking of our pasture lands will, in the near future, become a very difficult problem for our farmers. More especially is this remark true in the ease of cattle. The state of trade and business throughout the country is, on the whole, good. Traders in luxuries, such as jewellery, soft goods, etc., have been doing exceptionally well. Land and agency business is fairly quiet. The building trade is severey handicapped by the shortage of skilled labour and the high prices of materials; and operations in this industry are confined mainly to necessary works. There is little change to chronicle in the state of the money market. Mortgages still continue to be raised and renewed fit rates averaging as a rule 5% per cent. to 6 per cent., and the effect of the ,£5,000,000 local war loan, which the Government placed on the market in August last and which was oversubscribed, has not apparently been lo harden the market to any appreciable extent, at any rate in the meantime. The' cost of living is steadly increasing, and the high prices to .vhich the necessaries of life have advanced are imposing a heavy burden m the wage-earning and small salaried classes. The Government, with

i view of placing a check on the upward tendency of the price of butter iold for local consumption, fixed, by Order-in-Council, the maximum wholesale price at which butter destined to >c retailed in tho Dominion, mould be sold. The principle underlying the Government's ict : on is a very important one. In ;ympathy with the increased difficulty if living decently and respectably at he present time on small salaries, the 3oard recently decided to grant io che Bank's officers, a war bonus of 10 per cent, on all salaries, not exceeding £500 per annum, drawn by married men and by single men who are burdened with the support of dependgnts. The trade returns of the Dominion exhibit a very satisfactory position. In each of the two compete produce years that have passed since the outbreak of the war there :ias been a very substantial increase In the values of the Dominion's ex-

aorts, as compared with the previous year. To show to what extent ihe Dominion has benefited by the very ■strong demand for its staple pr -ducts, Lappend a table of the exports and imports (excluding specie) for the two years from Ist October, 1014, to 30th September, 1016, and also for the two years immediately preceding the war, viz.:—'From Ist October, 1012, to 30th September, 1914: — Exports. Imports. £ £ 1912-3 .. 23,682,416 22.565.354 1913-1 •• 23,759,347 21,056,334 47,441,763 43,924,733 1911-5 .. 29,710,131 19.786,221 1915-6 .. 31,926,511 23,791,152 t;i,t.36,975 !3.577,370 These figures show that the excess if exports over imports for the two: ire-war years was £^3,517,025, and the' excess for the later period, £21,059.599 Turning to the figures for the year ■anded 30th September last, viz.:—Exports £3U)26,»n, Imports £23,----791,152—nn analysis of t.'io export IE-ures shows that tho increase of £5,216,107, as compare;! with the proceding year, is due mainly to higher .-allies, an J nat to increased quantises. The fluctuations in our main products are shown in the following table: — Quality. 1.91 1-5 .1915-6 Wool, lbs. .. 208,908,118 200,130,173 Frozen Meat, cwt .. 3,3i;S,lii! 3.153.3 p) Butter, cwt 413,987 3H5.460 Cheese, cwt 792,075 970,818

Value. 1914-5 1915-6 £ £ Wool ~ 10,425,172 13,173,90J Frozen Meat 7,235,560 7,559,795 Butter 2,385,308 2,749,939 Cheese \ '2,523,169 • 3,446,142 It will be seen that all the principal products exported in 1915-16 exhibit an increase in value, though both wool and butter show a shrinkage in quantity. Imports show an increase in value for the year of £4,004,928. This is a large increase, which in normal times would call for more than passing comment, but under present conditions it is obvious that a considerable portion of the increase is due to higher values of the goods imported and the execution of belated orders: The prosperity of the country tends to encourage extravagance in expendi. ture and in methods of living, which. in ordinary course results in increased imports; and from that point of view it is perhaps not a bad thing- for the country that inward shipping facilities are in some measure restricted. The banking returns show an eminently satisfactory position. The combined deposits of the banks received from the public at 30th September last, compared with those of 30th September, '1915, were as follows:— Interest bearing deposits, 30th September, 1915, £11,609,066; 30th Sep. tember, 1916, £12,978,629; increase, £1,369,563. Non-interest bearing deposits, 1915, £17,545,563; 1916, £19,620,671; increase, £2,074,505. Totals, 1915, '£29,154,923; 1916, £32,599,300; increase, £3,444,371. Government deposits show large increases, the consequence of the incoming of the local loan moneys, and the large revenues resulting from the taxation imposed under the Finance Act'," 1915.. " Note circulation shows an expansion of £1,507,146. This is not the'result of any increased activity in the, trade of the Dominion, but is occasioned by the complete suspension of gold settlements .between the banks. Advances also show expansion to the extent of £1,329,059.