DOMINION TRADE

Waihi Daily Telegraph, Volume XXX, Issue 8451, 11 April 1933, Page 3

DOMINION TRADE

HO.JHLY REVIEW OF BUSINESS v A FAVOURABLE BALANCE FEWER BANK ADVANCES (Special to Telegraph) ' WELLINGTON, this day. This month's review is characterised by several unusual and interesting developments in the economic outlook provided by the various business indexes. The volume of business transactions taking place dming the month as measured by the total debits placed to individual customers’ accounts suggests a heavier month than was experienced in January. As, however, the sales-tax was imposed for the greater part of the period, and, in addition, the higher exchange rate operated for the entire month of February as against only a portion of January, it is probable that the influence of these two factors has produced some effect upon the higher total recorded for bank debits, without necessarily indicating a corresponding increase in turnover.

RISE IN FUNDS AT CALL Another important feature in the banking situation is the sudden rise in the volume of funds left at call with the bank, while fixed deposits showed only a comparatively insignificant increase. The consequent ratio of free to fixed deposits was thus raised to 51.68 per cent., a level not exceeded since July, 1931, when the ratio was 51.70 per cent. Again, with the progress of the export season, and with the visible balance of trade remaining distinctly favourable, the calls upon advances from the banks have diminished considerably. This, together with the substantial rise in the total volume of deposits, has brought the ratio of advances to deposits down to 85.30 per cent. This compares with 93.54 per cent, for February, 1932, and 100.63 per cent, for February, 1931.

DAIRYING INDUSTRY Production of butter during February reached a very high level, although the season is well on the wane. The total received into grad-ing-stores was, in fact, 26.0 per cent, above that received during February of last year, and 17.5 per cent, above the record for the month established in 1930. Altogether the present season has seen a continuous output of butter well ahead of the previous season, the cumulative totals to date showing an excess for 1932-33 of 19.7 per cent, over 1931-32. The position for cheese is similar, although less pronounced. A new record was set up for the month, amounting to an improvement of 5.6 per cent, over that established in the previous year. The seasonal total to February shows an increase of 11.8 per cent, over-the corresponding period of last season. The total butterfat production for the expired portion of the current season was well ahead of that for a similar portion of the previous season, the increase amounting to 16.2 per cent. OVERSEAS TRADE

Generally speaking, the export season has been earlier this year, and the great bulk of the Dominion’s produce is already afloat for overseas markets. Consequently, a decrease this month of 8.6 per cent, in the total value of exports is by no means discouraging, although cognisance must be taken of the effect of the increased exchange rate operating from the 20th January last, which, of course, enhances the total export values for the month under review. Compared with February, 1932, exports are down by 16.0 per cent., but for the two months of the present year an increase of 1.2 per cent, is recorded over the corresponding two months of 1932. Exports of wool have been well maintained so far this year, and for the current month show an increase of 21.5 per cent, in quantity, and 21.3 per cent, in value, over the corresponding month of last year. For the two-monthly periods, the current year’s figures give improvements of 14.4 per cent, in quantity and 10.0 per cent, in value. Imports continued on the low level established for some time past. The total .yal.ue for the month was down by 22.4 per cent, from January, 'and 11.3 per cent, from February, of the previous year, while the two-months’ total has declined by 7.9 per cent.

BANKING FIGURES Quite a considerable change is recorded from the long-established trend of advances and deposits. Deposits have increased by a further 3.7 pbi: cept. frpm the previous month (a 4!3 per cent, increase was recorded month over December), and have now reached a level 4.3 per cent, ahead of the total for February, 1932, a relative position not equalled since the depression became evident. This favourable position is all th« more emphasised by the fact that the improvement is largely due to a considerable advance in the volume of free deposits. A continuance of a substantial favourable trade balance due to a heavy expgrt season has had Its reflection in the volume of advances, which has now begun to decline considerably, the total for the month under review having receded by 4.2 per cent, from January, and by 4.9 per cent, from February, 1932.