NEW RECORDS SET UP

Southland Times, Issue 23199, 14 May 1937, Page 16

NEW RECORDS SET UP

OVERSEAS TRADE INCREASES economic conditions IMPROVING “The financial year just ended has been an eventful one, further substantial progress from the depression low points being indicated by significant statistical series,’’ reports the Government Statistician. “The first signs of recovery became evident in the 193334 financial year in the direction of a sharp movement in a bad external trading situation. During 1934-35 internal business activity quickened, but exports fell because of lower wool prices and an exceptionally dry production season. During 1935-36 exports recovered, imports continued to increase, and internal business activity continued to expand. Factory production in that year recovered substantially—employment in factories touching a record level. “Economic conditions in the Dominion at the beginning of the financial year just closed were considerably better than for some years previously, but complete recovery from the depression period was not in sight. Conditions have altered materially during the past 12 months, further recovery in internal business activity being accompanied by a material change for the better in the external trading situation. “Overseas prices of New Zealand products have increased substantially, particularly in respect of wool prices, the rise in which has been spectacular. As a factor partially offsetting the enhanced overseas prices of New Zealand goods the rearmament programme in Great Britain and other countries has resulted in recent sharp increase's in prices of metals and other basic materials. New Records Shown “During the latter months of the financial year the value of _ cheque transactions, active circulation of bank notes, and deposits.in savingsbanks have touched new record levels. The value of exports during the financial year also exceeded the previous highest March-year total, while imports (though not a record) were the highest for several years past. Indications point to the level of employment in factories being materially higher than the ..record level shown by the statistics for 1935-36. “If the above factors were the only ones to be considered they would point to a complete recovery to normal conditions in industry and trade, but circumstances have changed so considerably in the eight years which have elapsed since the last ‘normal’ year that comparisons with the pre-depres-sion years lose much of their point. The achievement of record levels in important statistical series indicated above would be a necessary corollary of complete recovery, since the population, though increasing at a reduced rate, is substantially higher than eight years ago. On the other hand, changed circumstances must account at least partially for the relatively slow response of certain statistical business indica•tors to enhanced prosperity. “Mortgage registrations, though showing a considerable increase, are still very considerably below the levels of 1926-30. Renewals of expired mortgages probably now account for a much smaller proportion of registrations than was the case in those years, because of the large number of expired mortgages awaiting adjustment under the Mortgagors and Lessees Rehabilitation Act. Building activity, though expanding, is still materially below the levels reached in the years immediately prior to 1930; but a considerable improvement should soon become apparent, as construction work under the Government’s housing plan has already begun. Land transfers, though increasing, are still far below the levels of a decade ago—to a large extent a natural complement of the lower level of building activity; and, in respect of country properties, at least partially as a result of .mortgage-relief legislation. The above factors will also account to some extent for the relatively low relationship of bank advances to deposits. Overseas Trade

“The value of exports and of imports for the year ended March 31, 1937, reveals phenomenal increases as compared with the totals for the previous year. Exports of merchandise amounted to £60,234,511, an increase of £10,558,519, as compared with the total for last year (£49,675,992). Imports increased in value from £37,439,944 to £47,621,— 104 for the period just ended. These figures are exclusive of specie, exports of which during the 12 months ended March 1937 amounted to £11,045, while imports during the same period amounted to £75,154.

“The principal item contributing to the marked increase in the value of exports was wool, the value of exports of this commodity having risen from £10,427,346 in the March year 1935-36 to £15,787,209 in the financial year just past. A substantial increase (£2,230,536) is also recorded in the value of exports of butter. “The net overseas funds of New Zealand banking institutions on account of New Zealand business totalled £ (N.Z.) 34,284,553 on, March 29, the Reserve Bank’s holdings of sterling exchange accounting for £ (N.Z.) 19,098,904 and the net overseas funds of the trading banks for £(N.Z.) 15,285,649. The net overseas funds of all New Zealand banks were £ (N.Z.) 44,088,143 on March 30, 1936, the latest figure representing a decrease of £(N.Z.) 9,703,590 on this amount. The peak level during the financial year just past was £(N.Z.) 45,257,016 on April 27, and the low point £(N.Z.) 28,080,537 on December 28. Since the latter date overseas funds have increased by £(N.Z.) 6,304,016. “Deposits with the Post Office Savings Bank during the financial year have exceeded withdrawals by £3,634,966, the corresponding figure for 193536, being £2,086,179. At the end of March 1936, the amount to the credit of depositors with the Post Office Savings Bank totalled £52,916,352 —a record figure up to that time. An exactly corresponding figure is not yet to hand for March 1937, the amount of interest credited to depositors not being at present available, but the previous record will be easily exceeded, since the total will be approximately £58,000,000.”