BANKERS AND THE FINANCIAL STRINGENCY.

Dominion, Volume 6, Issue 1630, 23 December 1912, Page 6

BANKERS AND THE FINANCIAL STRINGENCY.

Sir,—Bankers and bank directors in ordinary believe in tho adage that "silence is golden." Not so the rccently-reappoint-ed' director and acting-chairman of. the Bank of New Zealand. By a Press Association telegram it "appears that Mr. Beauchamp has taken early opportunity to resume his favourite role of an econoniicceusor, and to declaim on the existing financial. stringency. Joined with as an effect, or' in spite of the high price of wool, he inferentially attributes this strengency as also duo to .Government, local bodies, and to land speculators. But might lie not have included bankers who have too readily made advances where altogether insuthcient capital was found by diverse enterprising .promoters and others. I mean shell advances us were disclosed last week by the balance-sheet freely handed round of a company in the Auckland district. While the interview concludes with a homily over thrift, the would-be economist approves and commends his Reform patrons further borrowing, _ and even names sums in excess of their proposals. He also cla-ims to prove private extravagance by the small margin existing between our imports and exports. The special connecting is perhaps somewhat remote, but his quoting that hackneyed test, the balance between imports, and exports, proves little when the creation 'and development of wealth within any country is ignored. If this, phase of Mr. Beauchamp's logic was not amateurish, England, with her continuing deficiency, would havt) been insolvent 10n , .' years ngo. -I am, etc., AN. ONLOOKER.