SIGNS OF RECOVERY

Waikato Times, Volume 118, Issue 19665, 27 August 1935, Page 3

SIGNS OF RECOVERY

THE TRADING POSITION. CUSTOMS AND TAXATION. MORE OPTIMISTIC SPIRIT. (By Telegraph.—Special to Times.) RANGIORA, Monday. “The value of exports for the year ended June 30, 1935, exceeded that of imports by £8,650,000,” said Mr Forbes. “In the previous year exports exceeded the value of imports by £22,400,000. This very high balance was due to Hie 'unexpectedly high prices received for wool in 1933-34 and on the import side to the ■fact that the low slump levels still prevailed. The increase in the import trade during 1934-35, which almost readied 1930-31 level, has markedly reduced the visible balance of trade, but this, due as it :s to greater purchasing power and demand in Ihe Dominion, is a most encouraging sign “Summing up Dm trading .position of the ‘Dominion, we may say that Hie volume of exports is steadily increasing and thanks to price recoveiy total values are also increasing and have expanded considerably above the depression levels. “In other respecls, too, there have been gratifying indications of recovery. Factory production figures, for example, show an increase of over £5,'500,000 over 1933 and an increase in the number of persons engaged from 68,921 to 72,651.

Banks Figures Improve. “The greatly improved condition of the bank figures provides a very striking indication of the upward trend in the country’s business. 'Bank returns always follow trade return and automatically reveal trade movements. The latest figures indicate that a greater volume of business is being transacted by the banks. The of money now circulating in New Zealand as distinct -from the volume of money lying idle is now much larger than in the previous four years and it is still increasing. “The amount of -free deposits _as compared with fixed is still increasing. This is due in large measure to the improvement in business confidence leading to a desire on the part of depositors to hold greater sums of money in readily available form and also to an actual increase In business turnover. Money has been plentiful and cheap during the past 12 months and only awaits the complete return of confidence and profitable avenues of investment. Unemployment Reduced. “Following upon the Unemployment Board’s amended scheme of building subsidies, building activity throughout the year has shown a definite increase. In the year 1934-35, 2173 building permits for private dwellings were issued. This compares most favourably with the figures for the two previous years which were I'9Bl and 1062 respectively. “Another satisfactory feature of the past 18 months has been Hie definite improvement in the employment situation. Unemployment figures bail reached their peak in October. 1933, with a figure of 75,246. At the beginning of ibis month they stood at ■57,571, a decrease of 4880 compared with the total a year ago when the figure stood at 62,451. “Another noticeable sign has been the increase in the number of people travelling overseas and in this country. During the year ended March 31, 1935, 12,924 tourists visited New Zealand. This is the highest total on record. Surplus for Year. “As you are no doubt aware, the financial year ended with a surplus of approximately £1,600,000. National expenditure was £24,500,000 and revenue totalled £26,120,000. The surplus was all ihe more welcome because of its unexpectedness and it was due in the main to items of a non-recurring nature, such as the profit on the sale of gold, high returns from death duties on account of the deaths of a few wealthy persons, then again, the returns from income tax were high because of the higher returns from wool from the previous year. “The increase in total taxation last year by £3,267,000 over 1933-34 is not the result of any increased rates of taxation —it is due entirely to the general improvement in trade and business. It Is also worth remembering that the total taxation includes £4,500,000 a year of unemployment tax which is directly necessary for the relief of unemployment. The increase in this lax and in income tax is also a clear indicalion of ihe improvement in the national income.

“It is calculated that the wages bill of the Dominion increased by £3,600,000 Inst year. Incomes other than wages showed an increase of more than £6,388,000, but it must be remembered that this figure is based on incomes earned in the year 1933Hj— the year of improved wool sales. Nevertheless. Ibis total increase of £10,000.000 is a clear indication of better times.

Revenue from Customs. “Customs revenue for the financial year 1933-34 was £6.485,000 —for last year it was £7,424,000. The latest available figures (for the first half the calendar year) as compared xvith the same period in 1934 show that this increase is being continued. For the half-year. January-,lime. 1934, customs receipts were £3,386.892. For the half-year, January-,June, 1935, they were £3,681,599. The same position is disclosed in respect ol (lie sales lax which is based directly upon the volume and value of wholesale business in New Zealand. r rho Males tax returns increased from £1.847.000 in 1933-3 4 lo £2,170.500 in 193 1-35. The half-yearly figures (.Tnnunry-.Tune) are: 1934, £988,121; 1935, £1.131,465.

Spirit of Optimism,. “I think I may claim to have, produced evidence of general restoration. There is a striking change in the ceneral attitude towards national conditions. There is now a pronounced spirit of optimism in tho place ot gloom, and prospects are undoubtedly holler than at any lime since the depression began. Hxport values have improved, imports have increased, the balance of trade is favourable, costs of production have been reduced, and money is available in abundant quantities. •‘Great sacritlees have been made by the, community but these saeri(Continued hi previous column.)