STATE OF TRADE

Wanganui Chronicle, Volume 74, Issue 112, 14 May 1931, Page 9

STATE OF TRADE

THE EXCHANGE RATE. | a.x oHtcial ri:\jew. WELLINGTON, May 10. In his monthly review of busines conditions for March the Governmen Statistician remarks that bank debit for the month (exclusive of Gover:i ment accounts) reacted slightly to th l customary impetus given to busines activities during March, but failed U rise to anything appreaching the leve of last year. Advances continued on : comparatively high level, nnd it ap pears probable that the present ex change position may be reflected ii coming months by yet a further Di crease proportionate to deposits. Tin improvement in the ratio of free Io fix cd deposits in evidence last month wa; not continued. The dairy industry suffered a relapse as fur as its marketing value at Hono is concerned. Production showed th' customary easing-off for this portion oi the dairying season, but the aggregate output was well up to normal. For the first time for many months the total exports approximated th( usual figure, an exorbitant demand foi wool being the primary cause of thi sudden rise. Imports during the niontl showed a substantial dwindling, and it seems certain that while the 10 pci cent, adverse exchange rate on the New Zealand-London money market will m doubt, eventually relieve the plight ol exporters, on the other hand import: must inevitably be further stifled. A forced improvement in the favourabh “visible” balance of trade shoul' therefore ensue, which may mark tlx turning of the tide of the country’.prosperity. Financial circles still continued tc lag behind the usual state of activity expected during March, although a slight stimulus as received compare*, with February. The mortgage business transacted during the month plainly showed the paralysing effect of th( long-continued period of restricted credit and shrunken incomes. The wave of financial depression has placed many firms and private individuals in a pre carious position, as reflected by a heavy increase in the bankruptcy figures fo> the first quarter of the year. The banking position as at 13th April was, free deposits, £18,299,326; fixed deposits, £32,789,819; advances, £53, 635,295; bills discounted £1,018,137. Put in another form the position was as follows: £ Advances and discounts .. 54,653,432 Free and fixed deposits ... 51.089,14 .j Excess advances £3.564,287 The external trade position for the twelve months ended 31st March last, compares with returns for 1930 as fol lows: 1930 1931 £ £ Exports .... 49,045,817 39,527,784 Imports .... 49,167,914 38,300,807 Excess of imports, over exports, 1930. £122,097; excess of exports over imports, 1931, £1,226,977. Value of exports for the twelve months ended 31st March, 1931, are less by £9,518,033 than those for last