TRADE CONDITIONS

Wanganui Chronicle, Volume 72, Issue 92, 18 April 1929, Page 6

TRADE CONDITIONS

CONDITIONS of. trade to the end of February were more ' favourable than last year. Exports show an advance of 2.7 per cent, over the corresponding month last year and a decline of 4.7 per cent, from the high figure set in January of this year. The month to month figures of exports, however, give a too near view. To get a more desirable perspective the yearly period should be viewed. For the year ending February of last year exports totalled £54,000,000; this year they have reached £57,000,000. Imports for the same period total £45,000,000 for last year and £45,500,000 for this year. The visible favourable balance, which approximated £9,000,000 during the twelve months ending February of last year, has increased to just over £11,500,000 for the year ending February, 1929. From the £11,500,000 has to be deducted the interest charges on foreign capital. This overseas interest bill amounts to £7,500,000, so the benefit to the Dominion on the year’s trading amounts to approximately £4,000,000. This annual profit of £4,000,000, however, has not been put into immediate circulation. The spending power of the publie had not been increased by this total amount but by £1,200,000, this being the increase in free deposits with the banks after deducting the contraction in the note circulation. As fixed deposits have had £4,132,606 added to them during the year ending March 31, it is evident that this class of investment has claimed most of last year’s trading profit. The capital of the Dominion has, therefore, been increased, and the Prime Minister has good ground for proclaiming the soundness of the Dominion’s financial position.