BUSINESS ACTIVITY

New Zealand Herald, Volume LXXV, Issue 23044, 23 May 1938, Page 5

BUSINESS ACTIVITY

PAST YEAR REVIEWED CONTINUED PROSPERITY SET-BACK IN WOOL PRICES Economic indicators for the financial year just closed generally speaking have been buoyant according to the review of business contained in the Abstract of Statistics for April. Record levels have been established in savings bank deposits and motor vehicles licensed and the number of radio licences issued, indicated a continuance of the prosperous conditions which have obtained for some time past. Building activity, particularly with regard to the erection of dwellings, also lias shown a substantial improvement. Some factors in the economic situation, however, have not been entirely favourable. The setback in wool prices, although not as 'serious as was anticipated early in the season, resulted in a considerably lower wool cheque than the record amount realised in the previous year. Prices of other classes of farm produce on the whole have been appreciably higher.

"The farm production season lias been changeable," the review states. "In the early part of the season, dry conditions predominated, but latterly there has been a superabundance of moisture, culminating in a severe economic loss in the recent Hawke's Bay floods. Weather conditions generally have been favourable in dairying districts and no shortage of winter fodder is anticipated. Dry conditions in Otago and Southland for the greater part of the year, however, resulted in a reduction in milk yields in these districts. The average yield of the wheat crop will be practically the same as last year." The seasonal peak in the volume of cheque transactions is usually reached in March, but probably due to the lower prices for wool in march, 1938, the figure was almost 7 per cent lower than that for the same month in the previous year. The level of advances with the trading banks was much higher at the end of the financial year than at the beginning, the average amount outstanding in March being £51,752,994, compared with £-16,853,679 in March, 1937. Deposits were slightly lower and the ratio of advances to deposits has risen from 69.21 per cent in March, 1937, to 81.57 per cent in March this year.

Deposits with the Post Office Savings Bank during the financial year just past exceeded withdrawals by £3,412,008 iiud the amount to the credit of depositors reached the record liguro of £03,116,930. LAMB MARKET STEADY VALUES IN LONDON

The Hank of New Zealand has received the following advice from its London oflice as at the close of business last week: —Wethers: The market io steady and no material change is expected yet. Ewes: The market is dull. Lambs: The market is stead v. There is a better inouiry for light-weights. Quotations:—Wethers: Light, 5d to yjtl per lb; heavy, 4id to 4£d; ewes, 2ijd to Id; lambs, twos, 7jd to 72d; fours, 7id to 7jd; eights, 7id to 7itl; seconds, 7.' t d to 7Jd. COTTON, RUBBER, COPRA, ETC. (Received May 2'J. 5.5 p.m.) LONDON, May 21 (Quotations on May "11 in parentheses.) Cotton. —Spot, 4.GBd (4.77 d) a lb.; June delivery, <L57d (i.OiKl). Rubber. —Para, sgd (5Sd) a lb.; plantation and smoked, sj|d (old). Jute. —Mav-Jnne shipments, £l7 17s 6d'(£l7 12s*6d) a ton. Copra.—June-July shipments. South Sea, sun-dried £lO 15s to London and Rotterdam (CIO 15s May-,lime) a ton; South Sea, smoked, £lO 12s t3d to Marseilles and Genoa (£lO los); plantation, Rabaul, hot air dried £ll 12s (3d to London and Rotterdam (£ll los). Linseed Oil. —£25 15s (£26 ss) a ton. Turpentine.—3ls 9d (31s 9d) a cwt.