THE BANKING RETURNS
DOMINION'S POSITION DISCUSSED. CFeok Oon Own CoMizsroßDr.irr.) AUCKLAND, January 12. The summary of the banking returns of tho Dominion and the figuris showing thu decrease of exports during the year w-ve (submitted by a reporter to a gentletnin who is visiting Auckland, and who for many years was connected with banking in New Zealand. He said the moat disquieting element in tho titatistios pubji.ih«l was the very considerable decrease in the value of the exporus of tho Dominion. The cxccfH of the exports over thu imports was, of coureo, the only source from which New Zealand could pay the interet-t on its debts. The interest on the national debt was roughly 3i millions a year, and it was likely that'the interest on the municipal and private indebted nitfß camo to an almost equal sum. The surplus of exports over imports was lew than this seven millions that had to be paid to someone outside the Dominion. It meant that tho debt of tho community must bo increased. The value of the exports was apparently £17,5 ( J4.C00. and though the value of the imports had not yet been announced, they were probably not far short of the exports. If that were so there would ho liltle or nothing to pay. The interest had been made up by borrowed money or some form of increase in tba general indebtedness. A oerotts question Jin to bow long finch a conditio! could continue was thus raised. There was no ipiextion of the value of tho security offered by New Zealand to the. outside lender, but mionor nr later the time- would eomo when no matter wliat the security was there would bo a difficulty in finding lenders. With reference to the vcrv large increase of 3J millions in tho advances mado by the banks, ho said the main consideration in his mind was whether those advances had been prudently mado. There was no doubt that during the past few years the funds of tho bankx had been accumulating in London, ami had been employed at presumably' comparatively low ralos of interest. Tlhsh funds were duo to tlio surpluses from realisation of produce in Ixuidon. Tho only question was whether tho conditions and trading circumstances justified the funds being advanced to the community ill New Zealand inroad, of being employed in lyondnii. The danger was that theso advances might have been mado on seen lily (lillkult to release, at short notice. If circumstances led the depositors, to seek to withdraw tlgir money," and the bankc had to call in their advancer, that danger might bo manifested. There might be some juiitilicaUou, ho added, for the view that the money derived by Uie banks from the people in New Zealand should be advanced within the Dominion, and the only question then was that relating to Ihopru. deuce with which the advances were made Tiie figures showed that the total advances was still a little less than the total of doposits, tho depots bcimr £35,557,000, and the advance* £23.191.000.
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Otago Daily Times, Issue 15350, 13 January 1912, Page 4
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505THE BANKING RETURNS Otago Daily Times, Issue 15350, 13 January 1912, Page 4
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