OUR SOUNDER POSITION.

New Zealand Mail, Issue 1056, 26 May 1892, Page 31

OUR SOUNDER POSITION.

The leader of the Otago Daily Times, to which we have before referred, is amusing, because it supplies a very useful answer to the outcries of the Otago Daily Times' political party. We refer to those outcries about the withdrawal of capital, and the accumulation of money in the bank, to which we have often referred before. The article points out that the probable increase of the wheat export as compared with that of last year will be very large, and .points to the fact that in Canterbury this year four millions more bushels were grown than last year. It goes on to remark that it cannot be denied that the agriculturist has been having a very, fair tin' e indeed, and goes on to observe, “We understand that both last year and this a good many mortgages in farming districts were sensibly reduced. This is no doubt the best evidence of the farmers’ progress.” A few lines further down we find the remark that the increase of half a million in the deposits in the bank shows a certain distrust on the part of those desiring to employ capital. “But,” says the writer, “ it mast be remembered, on the other hand, that the note circulation, which always telh the tale of trade best, has increased from L 929,065 last year to L 975,611 this March,” It seems to us that in chronicling the paying (iff of mortgages, accompanied by the increase of note circulation, the writer shows at once why there is more money in the banks, and why, at the same time, it is nonsense to talk about the trade of the Colony as being in a state of terror and stagnation.