THE BANKING RETURNS.

New Zealand Herald, Volume LXVI, Issue 20303, 10 July 1929, Page 10

THE BANKING RETURNS.

Signs of returning animation in the Dominion's economic condition arc discernible in the returns furnished by the commercial banks of their business in New Zealand during the June quarter. As was expected, the final realisations of an abundant season of production have caused a further expansion of deposits, the total constituting an absolute record, £1,700,000 greater than that reached in the March return. The composition of that total is, however, more significant than its dimensions. There has been, during the quarter, a substantial increase in fixed deposits, but a larger addition to the free deposits, so that the proportion of the former is now less than 52 per cent, of the total, as compared with 57 per cent, in December. In the six months, the aggregate sum in private deposits has risen by £5,390,000, of which £4,631,000 has been added to the free deposits and only £759,000 to the fixed deposits. There has also been a striking increase during the quarter of just over £1,000,000 in advances, and as this cannot be attributed to-seasonal influences it suggests that the banks arc again finding opportunities for domestic employment of their resources. There has certainly not been any comparable variation of the advances figure in the last two years. Nevertheless, the general position has not been appreciably modified. The excess of deposits has again risen to £9,645,000, the highest, since 1920. These millions arc, of course, not literally idle; the bulk of Ihe money has been placed by the banks in profitable investments abroad, chiefly in London, whence it could lie transferred to the Dominion only at the expense of a considerable disturbance of (he exchanges, since there is no reason to anticipate a large expansion of imports. It might certainly be used in New Zealand to finance a notable development of industry and commerce, if such enterprise had not been stifled bv the maintenance of high taxation and the Government's positive threat of fresh demands. Much will depend on the measures proposed by the Government dining the next few weeks, especially its financial policy. In spite of election pledges, it will lie forced to discard its prescription of bringing in "many more millions" by overseas borrowing, and to seek instead to facilitate the- profitable employment within the country of its own accumulated millions. To the extent (hat the present position is abnormal, there is a degree of instability and the Government's first concern should be to encourage sound development of the national resources by removing legislative obstacles arid reducing taxation that now prevent the employment of capital in those directions.

HORTICULTURE CONFERENCE. Thai "Adam was a gardener" has very credible authority, Kipling's familiar reference accepts the fact as beyond doubt. All gardeners, therefore, may rightly, deem themselves of ancient lineage as to occupation, whether their activity in horticulture bo amateur or professional. It may be both, of course, for an "amateur" is a lover, and presumably the professional gardener, unless impelled only by dire necessity to grow vegetables, has affection for his products, even for his work. In very honourable succession, consequently, are the delegates assembling in Auckland to-day for the seventh conference of the New Zealand Institute of Horticulture. This conference, by the way, is the first of its order to meet in this city, a fact giving Auckland as a whole a special interest in it. Among the subjects to be discussed are some that ought to attract general attention. Of particular value is the suggestion, raised by remit, that there should be established a> method for authoritative registration of new varieties of plants and fruits. Hitherto, this necessary work of record has been imperfectly done, and the conference should not hesitate to displace the somewhat haphazard way with one thoroughly systematic and official. Another matter, of highly practical importance is that of a national botanic garden—or of more than one garden of the kind, located to serve the needs of the Dominion in different latitudes—and the conference should take steps to obtain the Government's cooperation in this project, the value of which has been emphasised by visiting botanists. It is to be hoped, too, that pressure will be effectually exerted by the conference on the Government to induce a renewal of the grant for citrus research. These and kindred questions invest the conference with importance, and it proceeds to its work with the good wishes of the very large number of horticultural enthusiasts resident in the city and its neighbourhood.