THE FINANCIAL DEPRESSION

Otago Witness, Issue 3520, 30 August 1921, Page 19

THE FINANCIAL DEPRESSION

STIIL AN ANXIOUS TIME AHEAD. (From Ocn Own Cohkesi-ondent.) CHRISTCHURCH, August 23. , The Sun quotes a banker as expressing the opinion that while trading and business concerns have got over the worst of the crisis as lar us tumbling values are concerned, the big test of the situation will be from now on until April next. Actually there is very little anxiety in the minds of bankers as to the safety of trading concerns generally, but the banks have had to strain their finances to meet their demands. The banks are now desirous of easing this financial pressure, so naturally the policy is towards reducing advances. 'lhe farming community has to be financially carried until April or May of next year, and, unfortunately, the wool position is still obscure. The land tax is payable in November, and the income tax in February or March. There will be it difficulty in meeting both the land and income taxation, and the banker was surprised that representations had not already been made to the Government to give relief in the direction of extending payments. In his opinion there will be no great shrinkage in the amount to be collected in income taxation. This will not be the case until the succeeding year. Most concerns are almost a year behind in the period covered by income tax. In a year of losses they have to make heavy payments. There is certainly an anxious time ahead for traders and others, but with prudence there should be no financial shipwreck. Most of the trading concerns have passed through a period of stress, but they must be prepared to face lean times. Conditions in the United Kingdom largely regulate the position, and it is satisfactory to note that unemployment is not now increasing there.