THE FALLACY Of FREE TRAL.

Horowhenua Chronicle, 9 June 1916, Page 2

THE FALLACY Of FREE TRAL.

(To the Mit'i' '

Sir,—l notice some correspondence in daily press advocating Free Trade, which would be feasible it it were universal and conditions equal." Why do they not advocate the removal of the alien poll taxP II it were done, it would permit ol a much lower rati; of wage being paid mid a lower eost of production, and, besides, we would have the ma'ntenance oi those subjects instead ot' their surplust-s in goods, with the result that we would soon be brought down to the Asiatic levei. Japan, India and China are making rapid strides in "manufacturing, md with cheap lab::ur and: modern machinery. they will ultimately ho a menace' to the British artran; but evidently this is of little moment to some of these correspondents, as they appear auxi'.us for cheap labouT and goods without' considering : ts disastrous effects to the British workers I quite believe if you were now t»

offer them made-in-Gormany goods at a tviflo 10-s tlian tho>e of -British manufacture their patriotism would vanish. Real patriotism, that will standi the people's pockets being truih-

Ed, is a scarce commodity. Thousands of men that would die for the flag would refuse to pay a trifle more for a colonial-made article, whioh would enable some fellow-toilers within the country to earn a living as weli as themselves. A wretched beggar-my-neighbour pol'cy pervades the whole community. The trade unionis's and the Socialists wh > arc always clamour, ing for higher wages for themselves, are at same time squealing for cheap food and goods. Short-eighted, ignorant and selfish, they would like to sell their birthright—their own home trade —lor a mess of pottage (some cheap foreign-made articlo). Then our poli. ticians are a sot of upscrupuious dodgers, who shy off the tariff issue as though it were a German bomb. Between such trreh New Zealand has fallen on parlous times.—l am. etc. Britisher. Heatherlea. June 8, 1916. ' BANK OF NEW ZEALAND ANNUAL GENERAL MEETING. (Special to Cluoniclc.) Wellington, Juno y. The ordinary general meeting ol the proprietors of the Bank of New Zealand was held at the aiead. office today (Friday). Mr. £L. Beauchamp, chairman of directors, commented on the more noticeable items of the port and balance sheet. He said:— CAPITAL. Tho 4 per cent guaranteed stock, which appeared in our previous balance sheet at £526,988, now stands at £529,U85. The only alteration in- 'ho capital is that the new issue of ordinary shares of £500,000 is rfOw fuliy paid-up, the final instalments of purcliase money having been duly paid by shareholders. THE RESERVE l< UND. This fund, by the addition of the further sum of £12,141 which fails to be credited to it' in respect of premium on new shares, and the transfer from profits of £50,QU0 wHich the Boara proposes to make, will stand at £2,0(52,141 —ol which amount £1,000,000 is invested in British Government securities. Notes in circulation are • more by £187,772 than at 31st March, 1915. They stand at £1,862,823. I need only remark ciiat bank notes are legal tender still within the dominion. Deposits (€23,55ti,(376) exhibit the vory largo increase of £4,815,019 as compared with the figures of a year ago. The factors winch 1 mentioned in my address twelve months- ago, as contributing to the financial e'ae in this Dominion, viz., ?fie increase in the value of exports, the inability of importers to obtain 'many lines of merchandise, and the lack ol shipping facilities, have operated in a still groater measure during the past year, and the resuit has been that the deposits in all the banks have increased abnormally. As you are probably aware, the margin between the. values of the Dominion exports and imports ror th' year, owing to the abnormal conditions which iiave ruled, has been unusaily large; and this wide disparity is reflected on, and is the cause of, the very large ncrease in our funds in London. Exports to London have largely increased, while impoits therefrom have decreased, and the result is—London accumulations. It should be mentioned that our surplus funds in London are profitably employed, pnnci- i

paliy by in short-dated British Government ,securities, ana arc readily available to use wiien reguired. I may say that the totals under this heading, together with the amount of bilLs receivable and investments m the Dominion are equa) to 71.47 pei cent (or 14s 3d in the 32) of the total linbi>ities of the bank to the public. Investments in the Dominion stand at £1,363,200 ,an increase of *£401,613. During the year the bank took up portion of the £2,000,000 local loan issued by the New Zealand "Government and also underwrote or purchased several loans of local bodies. These oporations mainly acoount for the increase under this heading. Bills discounted (£1,159,636) bliow a decrease of £26.822, and other advance* (£10,685,129) an increase of £22,422, as compared with the figures of .a year ago. — The comparative lack of movement in advances is in keeping with the easy financial conditions which hav© existed * in the Dominion, and to which 1 already Lave made reference. T rray say ■that all the reasonable requirements of our customer* have been met, and, despite war conditions, we have not hesitated to find money tor the prosecuton and development of legtimate enterprises in town and country. PROFIT AND DOSS. After paying interest on guaranteed stock and making all necessary appropriations including provision fir the banks' annual grant to tfi-i I'n viden - Fund, as well an .a bonii6 to the staff and the allocation of £756,000 in reduction of bonk premises and furnitui-o aoeount. the net profits for the year amount to .£285,000 as compared with £319,486 at 31st, March, 1915. The directors now propose to pay a further dividend of 6 per cent and a bonds of 3 per cent on ordinary n.ndi B preference shores (making 15 per cent tor the year) and a further 1 per on A preference shares (making 10 per cent for the year). RATES AND TAXES. This item exhibits the tar«w of £62,548 due partly to the t-xtia noto tax paid on out larger circulation, but mainly to the operation of the now income tax. The balance of the chairman's remarks .will appear in to-morrow's Ohreniole.