FINANCIAL OUTLOOK.

New Zealand Herald, Volume LXVI, Issue 20420, 23 November 1929, Page 15

FINANCIAL OUTLOOK.

banker urges caution.

PRODUCE MARKET PROSPECTS

EFFECT OF LOWER BANK RATE

" Both from tho financial and tho productive points of view New Zealand is still hold in high esteem by the people at Home," said Mr. A. L. Kennedy, secroiary of tho Bank of New South Wales in London, in summarising, prior to his departure hy tho Mnung;inni from Auckland yesterday, tho impressions ho had formed as tho result of a seven weeks' tour of tho Dominion.

Tho tour just completed by Mr. Kennedy, his first in New Zealand, was ono of ;i series arranged by tho bank for its senior officers to enable them to see something of tho territory covered by the bank's operations and to rnako personal contact with some of tho bank's customers.

"Your country impresses me, both because of its natural beauty and because of its productive capacity," said Mr. Kennedy. 1. think that yon can progress stilt further with tho increased uso of artificial fertilisers and the more-selective breeding of high-yielding cows.

It appears that Australia is in for a rather bad spell financially, as that country will bo receiving somothing like £15,000.000 or £20.000,000 less for its wool clip this season. That will mako London exchange dear, and, of course, New Zealand will not bo ablo to escape tho effect of that., although, theoretically, that effect should not bo so severe hero as in Australia.

" I mention that fact to indicate to business people on this sido that they should exercise a litUo caution. New Zealand is fortunate at such a period in that it has oilier exportable commodities in addition to wool. Butter and lamb appear to be realising good prices, and that should help to conipensato for any deficiency there will bo in the wool cheque. " The London position looks very much better with the drop in the Bank of England rate, and there has also b#en a drop in tho AmericaYi rate. It appears, then, as if tho difficult period is beginning to adjust itself."