DOMINION TRACE.

Waikato Times, Volume 109, Issue 18342, 30 May 1931, Page 10

DOMINION TRACE.

AN ADVERSE YEAR. HOPES FOR THE FUTURE. DEPRESSION LIFTING. In the Government summary of the finance, trade, and industries of New Zealand for the quarter aoci Y° ar V} 0 ’ ed March 31, 1931, Mr G. W. CUnkard, secretary for the Department ol Industries and Commerce, m commenting on the economic situation reports as follows: — . The adverse effects of the depression through -which New Zealand has been passing for the last eighteen months or so are clearly revealed in the course of this report. These effects are reflected particularly in our trade and banking figures. The returns of the six trading banks in New' Zealand for the past quarter show a substantial excess of advances over deposits, instead of an excess of deposits over advacnes as In the first quarter of each of the three previous years. The statistics of external trade show that the values of our exports and imports have been very considerably reduced. In addition, the prices of some of our principal exports still show no improvement,, and, finally, unemployment in the Dominion has become substantially worseIn spite of these unfavourable features there are, however, some bright spots. Firstly, our banking figures are not as unfavourable as they were at March 31, 1927; secondly, although the value of our exports has been considerably reduced, we are still able to show an excess of exports over imports of £1,220,977 for the year ended March 31, 1931; 'thirdly, the volume of production of our principal exportable products is being well maintained; and, finally, prices of wool and dairy produce, particularly the former, have shown some improvement in recent months. Some .measure of encouragement can he gained, too, from the fact that opinion is gaining ground generally throughout the world that the bottom of the depression has at last been reached and that an Improvement in economic conditions may he expected. Some industries in overseas countries have already experienced slight improvement, and with the return of confidence amongst the business community -an expansion of industry and an Increase in employment may reasonably be expected. Efforts have been made in New Zealand, as elsewhere, to bring about a reduction in costs of production. Wages have been reduced in many cases, and in some Instances the costs of other items, as, for example, interest and rent, have also been reduced to some extent. With the combination of these two movements — namely, an upward trend in prices and a definite downward movement in the direction of lower of production —future prospects appear somewhat brighter than they did at the commencement of the current season, and there seem to be. reasonable grounds for hoping that next season may be more profitable to all concerned than the 1930-31 season has been.