THE BUDGET RESULT.

Taranaki Daily News, 1 May 1933, Page 6

THE BUDGET RESULT.

The statement of the Minister of Finance (Rt. Hon. J. G. Coates) that the national accounts for the last financial year will show a small surplus will be gratifying news to the Dominion and should add to its financial credit oversea. The balanced. Budget has been achieved by drawing upon reserves to the extent of £2,500,000, but that may be termed a legitimate method of meeting a deficiency, though its repetition is bound to be more difficult if further deficiencies arise. Mr. Coates says the Budget surplus is due to increase in revenue and economies effected, and he promises full details of the national accounts some time this month. Taxpayers will be interested to learn how much of last year’s satisfactory results are due to economies and whether they indicate .that further relief in this direction may be looked for. The Minister is to be commended for making public the result of last year’s finance as soon as possible. The figures show that the high exchange policy placed a liability of £470,000 upon the Treasury for the two and a-half months it was in operation, but whether this is considered normal for such a period, or whether it was exceptional and due to the inauguration of the policy, remains to be seen. Although the indications are that the current financial year will be more difficult than its predecessor, the fact that an anticipated deficit of £700,000 last year has been replaced by a small surplus is proof of the resiliency of the Dominion against hard times, and proof also that its citizens are determined to honour the'? obligations and make all possible effort towards economic recovery.

NEW PLYMOUTH SAVINGS BANK. The progress of the New Plymouth Savings Bank has been uninterrupted for many years. Inaugurated for the development of thrift, the bank has made great progress since a more vigorous policy was determined upon by the trustees a little over ten years ago. Last years report and balance-sheet presented to the annual meeting of trustees on Friday showed that progress has been maintained in spite of the more difficult economic conditions. Naturally, profits are lower. They are £2975 less than for the previous year, but against tha. must be placed the fact that the trustees reduced the mortgage rate of interest by some hundreds of pounds more than was obligatory under the special legislation of last session, the trustees, as was stated by the president (Mr. Richard Cock) not looking for large profits but considering it their duty to aid the mortgagors who have been hard hit by the fall in prices for exports. Interest charged and accrued fell by £3145, an amount larger than the reduction in profits for the year. Proof of the ever-growing confidence in the bank is found in the increase in the number of depositors, the increase in accounts opened at New Plymouth being 914 for the year, and at Fitzroy the net increase in the accounts opened was 105. Amounts to the credit of depositors increased by £57,516, which Mr. Cock considered very satisfactory in all the circumstances. The trustees have continued their policy of investing the funds of the bank very largely in Taranaki enterprises, mortgages now amounting to £450,145. Liquid assets amounted to £130,000 at the end of the year, or more than double the amount required under the Savings Bank Act. That such results have been obtained in a year of acute depression is the best of tributes to prudent management and the confidence felt by the community in what has become a valuable and prominent local enterprise.