NOTES OF THE DAY.

Dominion, Volume 6, Issue 1775, 13 June 1913, Page 4

NOTES OF THE DAY.

The for Fiminro appears In (inye tliiiiiglil/ if; desirable to put light rei'tain of the critics of the tidiiiinitil.riiiion of tho Advances to (i»l.tlt',rs lleiiartiiient; and as will be fcen|l from the statement he makes on lint subject, published in another Oiilllllin, lie does so with some effect. We sliiuild imagine that when they (••who to rend his vigorous and outspoken statement of the facts of the* jmsilliiii bis wonld-ho detractors will lie inclined to think that they have plirced up a hornet's nest. _ They will |mi very dull and dense indeed if they are unable to see that they bavn afforded Mil. Au.en an opportunity, of which he has take'n full advantage, to expose tho wretchcd time-serving, support-buying moliwids of the narty whose claims they advocate. The Minister, after refuting tho misrepresentations cirmilated regarding tho policy and intentions ot tho Massey Government rospccting assistance to Bottlers, worlcors, and local bodies in tho way of advances, describes tho position in which he found tho accounts of tho Department when the present Government came into office in June last, "It was," ho says, "absolutely disgraceful." This is strong language, but the facts would seem to fully warrant its use. _ Tho methods of tho Continuous Ministry were delightfully simple—and brazen. They only had a certain amount of money available for actual advances, but thero was no limit apparently to their and so they jailed up pledges, committing the country to heavy obligations, hoping thereby to sweeten tho local bodies to whom the promises were made. Thus when they were ejected from office they left to their sucoessors a legacy of promises which committed the State to the lending of £770,000, and tho provision they had made to meet these claims amounted to less than £20,000. This situation was one of the problems with which tho Reform Government was faced at a time when money was dear and difficult to obtain. It is oomforting to think that for the' time being at least this form of reckless finance has been jettisoned. There is a sound ring about Mn. Allen'3 challenge to the opponents of the Government: "Let us fight the thing straight out before the electors, and see whether the country is to be honest or to plunge." But straightout fighting is the last_ thing tho people who havo been misrepresenting the Government's actions in this matter aro inclined to face.

The possibilities of the ooming contest for the Grey seat and also the question of a successor to the late . Sir Arthur Guinness as Speaker of the House of_ Representatives are, already affording t occasion for discussion in political circles. So far as the Grey seat is concerned, it has been a "Liberal" stronghold for so long that most people are inclined to the view that it is fairly, certain to continue as such. As a matter of fact, Sir Arthur Guinness retained the seat largely on personal grounds. It is probable that at the last general election the Labour-Socialist candidate, Mr. P. C. Webb, would have beaten any other candidate put forward. As it was, he polled very well, the actual figures being:— • Guinness 3677 Welb 2539 The Reform party had no candidate at that election, and in any case Sir Arthur Guinness would almost certainly have beaten all-comers. With his death the position is materially changed, and anything may happen. Presumably the Reform party will run a candidate,' and it may prove a triangular duel, with the second ballot as a deciding factor. Labour's chances would appear on paper to be quite as good as those of either of the other parties, but until the names of the candidates are known it is useless to speculate. So far as the Speakership of the Houso of Representatives is concerned the namesmentioned which aro most likely to command attention are the present Chairman of Committees (Mr. Lano), Mr. J. A. Millar, and Mr. Malcolm. 'Mr. Millar has had experience in the Chair, and was indeed for some < years an excellent Chairman of Committees. Whether his health would permit him to take up the duties of Speaker is another matter. Mil. Wilford also has had experience in the Chair, and has a good knowledge of the Standing Orders, but he is not a persona grata with either of the_ parties iii the House just now, and it is Hardly likely that his name will go to nomination. The matter, however, will probably stand in abeyance until members assemble here a fortnight hence.

The tension in the European money markets continues, and besides the failures already reported there are said to be others pending. Every fresh insolvency adds to the stringency of Aho position, and'the next two or three weeks will probably see the trouble at its worst. Germany is beginning to feel the pinch, for there isf now said to be a money famine there, and German Imperial 3 per cents have slumped to 75, which is the lowest on record. Holders of gilt-edged securities generally must be in a state of intense nervousness, and generally the position is one to tax the okill' and resourees of those responsible for preserving the financial equilibrium. Reporting upon the monetary conditions in America rscently, a banking firm of tha first rank mada th« foßowins interesting remarks: —"It is an undisputed fact that at the present tima tha security markots of ,tho world are in a congested condition. In Europe the position is probably worse than in the United States, War ancl the preparations for w.-ir, the .hoarding of; gold by both the bank?) and the people, coming at a time of constantly incrcas- ■ in" demands for funds by Governments, municipalities, and corporations, have created a situation that the signing of a treaty of peace may llllnviivto. Villi, will not frattlfl without [jjubsoauent liauidation. Already

there are signs of a business reaction in England and Germany, which may eventually be severe, particularly in tho latter Empire. In our own country wo are without doubt headed toward a depression of moro or loss severity. The _ only modifying influence in sight is the prospect of another big crop year, but the governing factor at tho present time is money."