THE FINANCIAL OUTLOOK

Horowhenua Chronicle, 18 December 1913, Page 3

THE FINANCIAL OUTLOOK

On the subject of finance, Mr Beauchamp said, —"When I last had the pleasure of addressing you, I reviewed at some length the financial situation and outlook, and remarked that I was not sanguine of an early return to easier monetary conditions. The views I then expressed have been justified by events, and the tightness in the market then prevailing still continues. The. Bank of England rate, which had been reduced to 4{> per cent, was raised again on 2nd October to 5 per cent, at which figure it still stands. The rate of the Imperial Bank of Germany is 5 per cent and that of the Bank of France that the dearness of capital is not that the dearness of capita lis not confined to London alone; it is the condition of the whole commercial world, and it is safe to say that there is little present prospect. of money becoming more accessible oil easier terms. The enormous expenditure jim armaments shows no sign of diminution, notwithstanding the drain oil capital thereby created; but one of .the greatest causes-of the continued dearness is the demand from all countries for development purposes. The moment there appears to be the least relaxation of tension, the market is flooded with applications for loans literally from every quarter of the globe. We cannot therefore expcct to find a very free market for our municipal and other loans. This Bank has been entrusted with the negotiation of a large total of such, to be placed as soon as circumstances admit, but the prospects of favourable flotations for the reasons already stated do not seem at all encouraging. There is, however, little doubt that money in reasonable amounts can be obtained, provided the borrower is prepared to pay the lender's price. We shall have to choose the most favourable moment, to approach the market ; andj as the unexepeoted sometimes happens, we may perhaps hope that it will occur in our near experience, in which ease it will certainly be gratifying. . . . With conditions as they stand today, I am bound to recommend New Zealand Local having loan issues in prospect, to postpone any action m the meantime, and 'avoid many commitments for outlay Both in Australia and New Zealand monetary ease resulting from the excess of exports is not likely to be experienced to any great extent, because, though exports have largely increased, imports have increased in even greater ratio. For permanent relief, therefore, we can only look to the Central Market of the world, and until London money becomes definitely cheaper, there seems small prospect of much ease in the Dominion.

THE LABOUR TROUBLE. In the midst of so much that was favourable in the circumstances of the people of this country—a bountiful season with a large prospective export of wool, butter, cheese, mutton, and other products; with good prices ruling in the markets of the world; with

abundance of work for our people at' a high average of wages fixed by agreements made under the authority of our Courts —we were suddenly confronted last October with a strike, at first a small affair, but quickly turned by mischievous agitators into the most serious industrial upheaval that the country has ever experienced. What the trouble is all about, most people have a difficulty in explaining precisely. It is not wages, for that at one lime fruitful cause of dispute is not mentioned ; it is not hours of labour, for no one has complained. The real question at issue appears 'to be whether the Federation of Labour shall be recognised as the controlling authority in, Labour questions. The employers say No! becaiise the Federation has declared itself as inimical to existing social conditions and a disregarder of industrial agreements and obligations. The employers claim that they should be expected to treat only with labour unions so constituted as to provide a means whereby the equitable settlement of any disputes that may arise shall be assured. For this purpose they claim that the unions must register themselves under the Industrial Conciliation and Arbitration Act, whicST provides the necessary tribunal for hearing and adjudicating upon industrial disputes. This certainly seems a reasonable attitude to take up; but it does not. suit the Federation of Labour, which aspires to being itself the sole arbiter of such questions. And so the strikers, who are under the domination of the Executive of the Federation, remain on strike, and presumably will continue so until they throw oft: the yoke of the Federation It has

been an encouraging feature of the struggle that the call of the Federation's Executive for a genera] strike was not uniformly responded to by the Labour Unions. This shows that a large proportion of the workers in the dominion are not in sympathy with the aims of the Federation, and are disposed, at the bidding of revolutionary Socialists, to voluntarily involve themselves and their families in needless sacrifices, and their country in serious losses. , . . The farmer has indeed proved himself to be not only the backbone of the country (as has long been recognised), but also the country's guardian and protector. If the present attitude of the leaders of the Federation of Labour is to be taken as an indication of Labour's attitude generally, it evidences a design to disintegrate the existing social order: and in thatcase the salvation of the State-, as well as its prosperity, would seem to lie in the multiplication of the yeoman proprietary to the utmost extent possible. ' Thus the strike developments have furnished a fresh argument in favour of the encouragement of land settlement and the subdivision of our large estates. The Government are to be complimented on the firm way in which they have dealt with the disturbance and are now bringing" to justice offenders against and' order and others charged with incitement to crime. Conduct of the kind must, of course, m the interests of society, be rigidly repressed. The thanks of the coinmunity for duo to all special constables, who, at considerable inconvenience and bodily risk to themselves, placed their services at the disposal of the authorities. They are also deserving of praise for the admirable self-control they displayed in the face of extreme provocation from the flawless element among the mob."