Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, MONDAY. APRIL 16, 1923. BUOYANT FINANCE.

Poverty Bay Herald, Volume XLIX, Issue 16102, 16 April 1923, Page 2

Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, MONDAY. APRIL 16, 1923. BUOYANT FINANCE.

The improvement that has taken place .in the finances of tho Dominion is marked not only by tho Prime Minister's foreoast of a surplus of £BOO,OOO, but by the splendid disclosure of the banking returns for March. Theso indicate that the country has turned tho corner at last and that the slump period is being left well behind. For the first time since 1920 the amount of indebtedness duo to the banks lias fallen below: the amount which .stands to the credit of depositors in the banks. Tho excess of deposits is actually £944,246, and when it is pointed out that a year ago there was

an excess of advances over deposits of £6,130,925, ifc will be seen what a wonderful recovery has been made in the last twelve months. The deposits for tlio March quarter just ended totalled £48,659,635, an increase of £3,792,796 on the figures, for March, 1922, and these deposits were made up roughly of Jive million Government deposits, 26J million free and seventeen million fixed deposits. The Government deposits appreciated only half a million pounds, so that 3£ millions of the incirease is duo directly to private lodgment of ca.sli in the banks. Whilst this movement was in progress an equally satisfactory position was arising in connection with bank advances. Advances and discounts at March 31, 192(3 totalled £42.521,568. as compared with £46,491,315 at March 31st, 1922—a diminution of indebtednessi on the part of the banks' customers to the extent of £3,969,747. Taking tho free and fixed deposits, together and the advances and discounts together, the following are the figures for recent years : <. Excess of March Deposits. Advances Deposits Quarter. £ £ £

These figures, we should say, will bo acknowledged, even by the most conservative of bankers, to be eminently satisfactory. They indicate that the people of the Dominion are making a strenuous effort to reduce indebtedness and pay their way. Traders have put a'curb on importations, and business, methods have been brought more to the line of prudcnce> and sound economy than they were a few years ago. At the same time the appreciation in the value of prices for New Zealand produce has helped to set the balance over well on the side of the banks' customers. Given a few years such as the last, with exports in excess of imports, and with bank deposits in excess of bank advances we shall soon have an era of real prosperity in the Dominion. The supply of capital for legitimate investment for the development of the country should become more plentiful and be available at easier rates than those which have prevailed for some time past. If the Prime Minister carries out his promise to reduce taxation it will help very materially to put New Zealand on its feet again. Mr Massey, in announcing the anticipated sin plus, last week, paid a tribute to the resource and stamina of the people of the Dominion, which had made such a result possible. "We have been successful," ho said, "because the people of the country were verv hard-working, energetic, and loyal. During the last twelve months it is marvellous what they have done. Look at the wonderful increase in exports to see what the people have been doing—particularly the people engaged in dairy farming. It has saved us. The additional export and the additional money coming in just gave us the turn iwe wanted. We have never looked back. To : day the improvement is going on all the time. The accounts! are not quite made up yet, but if I am not very far out we are going to end the year with a surplus ot £&DO,000. That 'is a marvellous change from the position twelve months ago." There is, as the Auckland Herald points put, a further reason for satisfaction in the reappearance of a surplus of credit over the conceded demand for accommodation. For two years loans, were made by the banks beyond 'the resources derived within the country, and while the Australian banks no doubt welcomed the opportunity for profitable investments, New Zealand was actually dependent upon external financial assistance to carry it through the period of the slump and its aftermath. It was fortunate for the Dominion that the prosperous condition of Australia permitted this measure of assistance. Now conditions have changed. Australia is suffering from a severe drought, and her financial institutions will no doubt be faced with heavy demands for accommodation. In these circumstances, the evidence of the banking returns that the Dominion has regained its financial independence is doubly welcome. TAXATION OF BETTING. It seems most probable that in his coming Budget the Chancellor of the Exchequer will announce a tax on betting as one of the methods to be adopted in Britain for the "raising of the wind" for national finance. In the Old Country an enormous sum must pass from hand to connection with betting transactions, not only in respect •to horse-racing butl also in connection with many athletic fixtures, and if\ it were possible for the Exchequer to reap a, commission on these transactions the aggregate collection would be very considerable and no great loss would be inflicted upon the individual bettors. The difficulty, however, is how to ensure payment of the tax. The Chancellor is reported to be conferring with the Customs Department, which considers a plan feasible, and it will be most interesting to learn the details of the scheme. There seems to be 'strong objection in Britain to the introduction of the totalisator and to confining the betting of the nation to the channel of that machine. The other alternative is to enforce the licensing of all bookmakers and to apply a strict check upon their receipts. This would probably be found as difficult a matter as, it seems to be in New Zealand to prevent bookmakers throughout the country dealing in wholesale manner in totalisator odds. Certain it is, however, that in the urgent need for building up the natiounal revenue, the Govrenment is prepared to take firm and drastic steps with the bookmaking fraternity. "It is now realised, apparently, in Whitehall, as it has long been everywhere else," says, 'the Pall Mall tiazette, "that a valuable source of revenue lies neglected in the betting ring and the bookmaker's satchel. It is money, moreover, which in the nature of things can bo better spared than the taxation which comes out of salaries,. out of the overturn of business, or of the breakfast table. Such taxes would have to be collected ktrough the bookmaker, and would involve his licensing and official recognition. That would in itself bring about a most useful purgation of the Turf and the suppression of a great deal of welshing; and fraud. There is still probably an objection in some quarters to 'recognising' what everybody knows to exist. But to relieve our public policy of the hyprocrisy which leaves every facility for betting tjo the well-to-do and punishes the poor man for putting a shilling on a horse would effect a vast improvement of the moral atmosphere." The suggestion that a depleted Exchequer might! derive a substantial revenue from the taxation of betting contracts, according to the Post's London correspondent, has wide public interest, not only'among supporters of the turf, but in the mind of the general taxpayer, who pees in it a possible alleviation of his burden, Asked as to the protective value of such a tax, one West End bookmaker said : "Millions and millions. It is incalculable."

MUNICIPAL ELECTIONS. Tho fact that there is to be a contest for the Mayoralty will be welcomed by many citizens. There is a feeling that it is high time that the people of Gisborne held a municipal stock-taking and ascertained! whither the community is drifting. One effect of (he contest will be. that municipal administration of the past few years will be closely reviewed and that plans and policies will be evolved, out of which it may be possible for the future Council to shape some programme of practical and progressive work and sound administration. The duty evolves upon every bm'gessi, for the next ten days at anyrate, to tako a keen interest in municipal matters, with the object of electing a. Mayor and Council who will run the affairs of the municipality upon intelligent and sound business lines. We

should hope that each contestant for Mayoral office and for a seat on the Council will put his views clearly and fully before the electors, so that a just judgment may be made and a good Council elected.

1914 . .. 24,050,250 23.665,751 363,499 I 1915 . .. 26,829,240 23,760,561 3,068,679 1916 . .. 31,274,055 23,735,892 7,540,161 1917 . .. 54,556,540 27.694.930 6,661,610 1918 . .. 55,505,497 29,317,895 6,187/ 1919 . .. 58,848,826 32,203.646 6.6.' ; 1920 . .. 50,665,091 32,042,043 L_.vws of Advances 1921 . .. 47,155,731 52,446,340 5.290,610 1922 . .. 40,360,590 46,491,315 6,130,925 Excess of Deposits 1925 . .. 43,465,814 42,521,568 944,246