JUNE TRADING ACTIVITY

Southland Times, Issue 24212, 23 August 1940, Page 2

JUNE TRADING ACTIVITY

SEASONAL RECESSION NOT APPARENT

RECORD NOTE CIRCULATION

Statistics indicative of business activity during June do not reflect to any appreciable extent the seasonal recession in industry which is normally associated with this period of the year. The value of cheque' transactions fell but little from the level of the previous month, and was substantially above that of June 1939, while the active note circulation advanced sharply to create a new record. Bank deposits, in keeping with the seasonal trend, fell slightly, but advances, which usually show little movement between May and June, declined to the extent of £1,119,441, says the Abstract of Statistics.

Exports during June were particularly brisk, heavy shipments of nearly all the principal export commodities contributing towards a phenomenally high monthly total of nearly £9,500,000. The farm production export season fits very closely to a June year, and consequently trade statistics for the 12 months ended in June possess a special interest. The total value of merchandise exported during the year ended June 30 reached the record total of £65,858,636, an increase of £7.966,725 over the 1938-39 figure.

Favourable climatic conditions were experienced during June in almost all districts with the exception of the Waikato, where heavy rains were reported, and Southland, where wet and cold conditions prevailed. Stock generally are in good condition except in the Wairarapa and North Otago districts, where dairy stock are reported to be rather low in condition. BANKING FIGURES The average weekly value of bank debits placed to individual customers’ accounts during June was £19,291,970, a record figure for a June month since these statistics first became available in 1928. Normally there is a substantial seasonal fall between May and June, but on this occasion it amounted to £314,258 (1.6 per cent.) only, as compared with £2,121,255 (10.7 per cent.) between those months of 1939. The average amount on deposit with the trading banks fell from £78,749,769 in May to £78,492,575 in June, practically the whole of the decrease having taken place in deposits on current account. The average amount on current account in June was £44,553,713, compared with £44,815,648 in May, and £34,449, 266 in June of last year. A decline in this type of deposit is usual at this period of the year, the difference between the May and June averages in the last three years being as follows: 1940, £261,935; 1939, £1,258,927; 1938, £990,667. There was little movement in the volume of fixed deposits, the June average being £33,202,477, as compared with £33,217,601 in May. After a moderate increase in each of the three previous months, there was a sharp decline in the volume of bank advances during June, the average for the month (£48,263,024) being £1,119,441 below the May figure. Compared with June 1939, a decrease of £7,667,868 (13.7 per cent.) has taken place. The June ratio of advances to deposits was 61.5 per cent., as compared with 62.7 per cent, in May, and 85.2 per ceiV. in June 1939. Unexercised overdrjit authorities on June 24 amounted to £29,643,228, comparative figures for May 27, 1940, and June 26, 1939, being £29,359,970 and £23,973,221 respectively. NOTE CIRCULATION The active bank note circulation reached a new high level in June, the average for the month (£14,525,234) being £803,812 above the May figure, and £613,095 above that for December 1939 (the previous record). Compared with the position 12 months earlier, a rise of £2,917,777 (25.1 per cent.) has taken place. The net overseas funds (on account of New Zealand business) of banks operating in New Zealand recorded a substantial increase during the month, the amount held on June 24 being £(N.Z.) 27,382,104, compared with £(N.Z.) 25,249,175 on May 27 and £(N.Z.)9,088,221 on June 26. Deposits with the Post Office Savings Bank during June totalled £2,304,747 compared with £2,655,803 in May, and £2,363,406 in June 1939. Withdrawals amounted to £2,233,828, comparative figures for May 1940 and June 1939 being £2,862,805 and £2,847,796 respectively. The transactions for the month resulted in an excess of deposits amounting to £70,919, compared with excesses : of withdrawals of £207,002 in May, and £484,390 in June 1939.

OVERSEAS TRADE In the normal course of events, May or June sees the beginning of the offseason in the export trade, but as irregular shipping services are inevitable as a result of war conditions, monthly figures of exports must of necessity fluctuate to a considerable extent. The value of merchandise exported during the month of June was £9,494,190, compared with £5,015,145 in the previous month and £5,145,082 in June 1939.

The aggregate value of merchandise exported during the first six months of 1940 was £44,631,839, an increase of £7,809,320 above the total for the corresponding period of 1939. The value of commodity imports during June was £4,898,568, a decrease of £649,938 below the total for May, and of £298,973 below the total for June 1939. Imports for the six months ended June were valued at £24,869,580, as compared with £28,186,730 in a similar period of 1939, a decrease of £3,317,150. The excess of exports over imports for the first six months of the two years was: 1940, £19,762,259; 1939, £8,635,789. CLEARING SALE AT OTAUTAU In threatening weather Wright, Stephenson and Company, Ltd., conducted a successful clearing sale of livestock and plant at Ringway Ridges, Otautau, on behalf of Messrs P. McKenzie and Son. There was a good attendance of farmers from the Otautau and surrounding districts and with brisk bidding from the outset prices generally were very satisfactory. The prices realized were as follows:— Sheep.—lo 4 three-shear ewes at 34/-, 253 four-shear ewes at 27/3, 72 two-tooth ewes at 39/3, 31 two-shear ewes at 35/3, 78 ewe hoggets at 33/5, 19 f.m. ewes at 10/-.

Dairy cows were sold at £5/15/-, £6, i £6/2/6, £6/5/-, £7/10/-, 2 at £lO, £7, £3, dairy heifer at £6/7/6, Draught geldings £l2, draught mare £ll/10/-, £5, aged mare £4, swamp plough £25, D.F. plough £B/10/-, disk harrows £l3, drill £3o,' lime Sower £l5, binder £lB/10/-, mower £l6, ridger £25, dray £25, chain harrow £4, tyne harrows £4/10/-, Planet Junior scuffler £3/17/6, Various other implements, harhess and sundries were sold at the latest prices.