DOMINION FINANCES

Otago Witness, Issue 3385, 29 January 1919, Page 37

DOMINION FINANCES

COMPARISON WITH AUSTRALIAN FIGURES. (FBOM 008 OWW COKRESFONOZNT ) "» WELLINGTON, January 2*. Following upon the statement of the finances of the commonwealth by the Hon. Mr Watt a few days ago, the Acting Minister of Finance (the Hon. Mr Myers) has thought it wise that he should make a statement about the finances of this country. He said at tho outset that, for obvious reasons, he could have nothing to say about the finances of Australia. "To anyone who has studied closely the financial and economio policy of the commonwealth," remarked Mr Myers, the statement made by the Federal Treasurer at the conference of Federal )? and State Ministers comes as no surprise." t • In regard, however, to the financial and economic position of New Zealand, Mr Myers said that he would, with every confidence, point to the conditions existing in the dominion at the present time a» being thoroughly sound, as disclosed by the banking returns published recently. The fixed and free deposits of the banks operating in New Zealand were at December 31, 191!;. no less than 35 millions, as compared with a sum at the end of 1913 of £22.800.000. The volume of advances at the end of 191 b showed an increase over those at the close ~of 1913 of 10 millions. In the year 1918 the excess of deposits over advances amounted to nearly two millions. " Turning to the amount to the credit of depositors- in the Government and private savings banks, the comparison is equally satisfactory," said Mr Myers, "sucn amount at the end of 1914 being 194 millions, as against 33 millions in 1918. The number of depositors increased during the period in question from 541,000 to 6W.000,..and toe deposits per head from £35 10s to ±,50. One must also, of course, refer to the note circulation of the dominion. During the period 1913 to ISIS this shows an increase m the five years of some five millions, now arrountait' to £6,760,000, including all legal sender no'tea held by the banks (this jtem totals about £1.300,000), against the paper tho banks bold in coin and bullion some £8,100,000, an increase fj on the 1813 holdings of. over four millions. _ "Comparing the Australian figures in this resect, the Minister said that the Conrmonwellta note circulation at the 30th September, 1918, was £05,590,000, with a gold bacling of about 20 millions, or about 38 per <*-,nt. of the paper in circulation, in© legal tender notes by Australian banks included in the abovo figure, amount to about 35 millions. , , . "As is known, our accumulated surpluses of Hi millions to the 31st March last are invested in London, and are available at fairly short notice," commented Mr Myers. "Owing to the wis© precautions taken by the Minister of Finance, conversions of loans falling due have been satisfactorily earned out, with the result that during the next five vears comparatively small loans only will mature outside New Zealand. It must be borne in mind that war loans to the extent of 42 millions have already been subscribed by New Zeaianders, the interest on whir-h is now assuming large proportions. Although the permanent charges are mounting up" rapidly, one feels safe in asserting that, with the assurance of a stable and progressive Government and increased production by all classes of workers, there is every reason to look with confidence to the future, . "Tho Imperial purchase of wool, meat, butter, and cheese having now been definitely fixed until June, 1920," continued the Minister, " is another factor making for economic stability, whilst the shipping outlook is improving from week to week. ' Mr Myers then made reference to the forthcoming final Victory Loan, and to the fact that tho Treasury is open to receive subscriptions now and at any time towards the sum yet to be raised on acoount_ of the war expenses which were still running on. "It should always be remembered, remarked the Minister, "that our present affluent position is due to the unprecedented demand by the Mother Country for our primary products, and the recent victorious conclusion of the war should be a spur to us m showing that the spirit which sustained the Empire during the conflict still continues to animate the people. Money is not now less necessary than were arms and men during tho dark hours of the great struggle. If New Zealand is to honour to the fullest extent her financial obligations, small sums are equally necessary with the larger subscriptions —in a word, to save everything possible and to lend_ freely to th© Government is the clear and imperative duty of all patriotic citizens.