H.—44.

Total deposits have thus reached a new record high level. Coming at the end of the export season, the June figures usually reach the highest level of the year. Since the June quarter of 1927 fixed deposits have shown a steady rise in each corresponding quarter in the subsequent years. The June quarter's figure for 1926 (£20,674,853) has practically doubled for the same quarter in 1934 (£40,861,569). The marked increase in free deposits is almost on a par with that of the fixed deposits and is indicative of a greater measure of confidence in business and trading conditions generally. The relative movements of the two classes of deposits for the quarter ended 30th June in each of the past ten years are shown in the table which follows :—

Deposits shown in the foregoing table do not include Government deposits which for the quarter ended 30th June, 1934, amounted to £1,017,649, as compared with £1,740,207 for the corresponding quarter of the previous year, a reduction of £722,658. Advances for the past quarter which, as previously mentioned, totalled £41,344,129, comprise ordinary advances aggregating £39,429,093, and notes and bills discounted £1,915,036. In comparison with these figures, ordinary advances for the corresponding quarter in the previous year totalled £46,147,379, and notes ancl bills discounted £609,732. The ordinary advances therefore showed a substantial decrease of £6,718,286, while the discounts also showed an abnormal variation in that they increased by £1,305,304. The average notes in circulation for the quarter ended 30th June, 1934, amounted to £6,423,115, as compared with £6,305,060 for the corresponding period of 1933, an increase of £118,055. Coin and bullion showed a decrease in value of £33,259, the relative figures being £5,045,199 in 1934 and £5,078,458 in 1933. GENERAL TRADE "REVIEW. In this report it is usual to make a brief review of the statistics of the overseas trade of New Zealand for the past calendar year. For the year ended 31st December, 1933, the value of exports from the Dominion was £41,301,951, as compared with £36,965,780 for the previous year, an increase of £4,336,171. Imports for 1933 aggregated £21,451,382, a reduction of £1,593,724, as compared with the figures for 1932 in which year the imports were assessed at £23,045,106. The foregoing figures are inclusive of specie, exports of which during 1933 amounted to £296,032, as compared with £1,355,861 for 1932. Specie imports during these two years were £424,704 and £55,310 respectively. Since New Zealand currency fell to a discount on sterling at the beginning of 1930, exports of merchandise have been expressed in terms of New Zealand currency, imports of merchandise from Australia in terms of Australian currency, and from other countries in terms of sterling. Specie exports and imports are, of course, recorded at their face value. In a comparison of one year's trade with another, it is preferable to omit specie exports and imports which, generally speaking, represent payments of debts and not additional trade, and the inclusion of which tend to obscure the trade position and movement. Specie is accordingly omitted from the following table, though it is as well to point out that exports of uncoined gold, which in the case of New Zealand ranks as an ordinary export commodity, are included. The figures of total trade and of balance of trade for the last four years are shown in terms of New Zealand currency : —

External Trade ( excluding Specie).

2

Quarter ended 30th June, Fixed Deposits. Free Deposits. Total. £ £ £ 1925 .. .. .. 20,966,426 30,497,209 51,463.635 1926 .. .. .. 20,674,853 27,594,496 48,269',349 1927 .. .. .. 21,749,104 24,741,262 46,490,366 1928 .. .. .. 27,589,988 25,357.145 52,947,133 1929 .. .. .. 30,241,013 26,810,881 57,051,894 1930 .. .. .. 30,522,174 23,225,864 53,748,038 1931 .. .. .. 33,045,225 18,124,162 51,169,387 1932 .. .. .. 35,400,900 16,815,882 52,216,782 1933 .. .. .. 36,867,558 18,866,445 55,734,003 1934 .. .. .. 40,861,569 22,874,327 63,735,896 I

I Year ended Exoorts Imports Total External 31st December, P Imports. Trade. Exports. Imports. £ £ £ £ £ 1924 .. .. 52,509,223 48,527,60.3 101,036,826 3,981,620 1925 .. .. 55,243,047 52,425,757 107,668,804 2,817,290 1926 .. .. 45,268,924 49,811,763 95,080,687 .. 4,542,839 1927 .. .. 48,496,354 44.782,666 93,279,020 3,713,688 1928 .. .. 55,570,381 44,844,102 100,414,483 10,726,279 1929 .. .. 54,930,063 48,734,472 103,664,535 6,195,591 1930 .. .. 44,940,517 42,662,827 89,281,000* 601,000* 1931 .. .. 34,950,698 24,756,803 61,449,000* 8,453,000* 1932 .. .. 35,609,919 22,989,796 60,256,000* 10,964,000* 1933 .. .. 41,005,919 21,026,678 66,587,000* 15,425,000* * In terms of New Zealand currency.