The Chronicle, PUBLISHED DAILY LEVIN. SATURDAY,MAY 23, 1914 LEVIN'S HANDICAPS.

Horowhenua Chronicle, 23 May 1914, Page 2

The Chronicle, PUBLISHED DAILY LEVIN. SATURDAY,MAY 23, 1914 LEVIN'S HANDICAPS.

Too much credit, too high a price for land, and too great an expenditure on motor cars: these are the three chief causes of the financial stringency afflicting Neu Zealand generally and Levin especially. Perhaps the cause thirdly s'-t down should he put in first place, hut as to the .joint preeminence there is no room for argument. To he bluntly vulgar is to he most impressive on some rare occasions: and to-day Ave are moved to vulgarly say that if people put less roast goose under their vests, Jess expensive vehicles on (he loads, and more money under the clock (i.e., into the Havings Bank) there would he fewer longfaced tradesmen in the town and a much more contented citizenry. Hopeless involvement, m debt is an anchor on progress, a restriction on effort, and a bligHt on happiness. The remarks foregoing were, evoked by the perusal of an excellent article on "The Curse of Credit," which appeared in a domestic journal of ancient standing entitled The Eamily Herald. From it -\ye quote as follows:- "We must guard ourselves against misunderstandings. We offer no criticism of the system of financial credit on which our great industrial businesses and public enterprises are built. It is essential that confident and gradual lending should provide the

capital for such undertakings, which extend their benefits far "beyond the life of a single generation. ' For example, the watei supply of a great city must be planned on a scale that covers fully fifty years, and the necessary works may occupy ten years in construction. The collection of ready cash for such an enterprise would be an impossible burden 011 the men of to-dav. Our public loan system equalises the financial responsibility over the present generation and generations unborn who will share the advantages now planned. Similarly the Napoleons of industry would never carry out their plans with their money. They need the capital of a multitude to support their schemes. Til such cases, hoAvever, as n rule, the security is ample, and ihe quiescent lender may be satisfied that his money is well \ised and easily recoverable. Wo discriminate between necessary and unsound uses of the credit, system. It is domestic credit we are concerned with—the debt-contracting habits of the poor and others who have no business right, to borrow, seeing that they can offer no security, and wlio arc demoralised by tlic possibilities of borrowing and repaying oxtortionatcly, or, as an alternative, not repaying at all. Is it not a fact that in every street of ovorv town a substantial percentage of the households are insolvent concerns? They owe more in the. aggregate than they possess. If they were balanced up honestly they would have to pawn some of their future labour to straighten the account; and many never could straighten it. Yet these are the very people who are seeking most eagerly for further credit, and, having nothing, are willing to accept the most exorbitant terms for temporary accommodation. Tl is the aim of the impecunious and unthrifty to use shopkeepers of every type as their bankers and money-lenders. r rho grocer, outfitter, butcher, coal merchant, milkman, and even Tiewsvendor are expected to supply