THE FINANCIAL OUTLOOK

Wanganui Chronicle, Volume 72, Issue 286, 2 December 1929, Page 9

THE FINANCIAL OUTLOOK

BANKER URGES CAUTION PRODUCE MARKET PROSPECTS “Both from th e financial and the productive point of view New Zealand is still held in high esteem by the people at Home,” said Mr A. L. Kennedy, secretary of the Bank of New South Wales in London, in summarising, prior to his departure by the Maunganui from Auckland recently, the impression, he had formed as the result of a seven weeks’ tour of the Dominion. The tour just completed by Mr Kennedy, his first in New Zealand, was one of a series arranged by the bank for its senior officers to enable them to see something of th e territory covered by the bank’s operations and to make personal contact -with some of the bank’s customers. “Your country impresses me, both because of its natural beauty and because of its productive capacity,” said Mr Kennedy. “I think that you can progress still further with the increased use of artificial fertilisers and tho more selective breeding of highyielding cows. “It appears that Australia is in for a rather bad spell financially, as that country will be receiving something like £15,000,000 or £20,000,000 less for its wool clip this season. That will make London exchange dear, and, of course, New Zealand will not be able to escape the effect of that, although, theoretically, that effect should not be so severe here as in Australia. 4< l mention that fact to indicate to business people on this side that they should exercis e a little caution. New Zealand i s fortunate at such a period in that it has other exportable commodities in addition to wool. Butter and lamb appear to be realising good prices, and that should help to compensate for any ■ deficiency there will be in the wool cheque. “The London position looks very much better with the drop in the Bank of England rate, and there has also been a drop in the American rate. It appears, then, as if the difficult period is beginning to adjust itself.”