TRADE AND BANKING

Poverty Bay Herald, Volume LV, Issue 17241, 24 April 1930, Page 6

TRADE AND BANKING

DOMINION'S POSITION PREMIER NOT PESSIMISTIC (Spech.l to the Harald.) ROTORUA, this day. "Having such a relatively .large external trade, this Dominion is very much concerned with the state of trade in other countries, and particularly in Great Britain, where the greater part of our exports are sold," says the Prime Minister, Sir Joseph. Ward, in reviewing trade and banking conditions in New Zealand, in the course of his statement to-day. "Happenings in the realm of international finance and the general economic conditions operating abroad have in the last few months brought about a marked change in the economic position and outlook of tho Dominion. As a result of falling prices and the delay in realisation, the values of our exports have declined considerably, and during the last financial year were hardly sufficient to pay for the year's imports, which showed an increase of about £4,000,000. During the two previous financial years, however, there was an excess of exports amounting to approximately £22,0(M),000, so that over the longer period the trade balance is satisfactory. "The published banking figures for the March quarter of 1930 show an excess of deposits of £305,000 as compared with £8,985,000 for the same quarter of the previous year. This decline in the relative position was brought about by a slight fall in the volume of deposits, and a considerable increase in advances. The change in the banking figures, of course, is largely the effect of the change in trading figures. The rise in imports and advances, however, indicate increased activity in busi- jj ness. The exceptional conditions ruling outside the Dominion have given rise to high rates of exchange, which v rates are by no means a true indication of the present financial position of the Dominion. In fact, the position is quite a sound one, and but for outside influences would have been regarded as quite normal.