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Hokitika Guardian, 13 January 1920, Page 2

It is announced that Germany has signed the peace protocol and that the treaty ratifications have been deposited. This is an important stage along the final settlement, Ibringing down the position sijnto imoro concrete shape. While there was the opening for bargaining the enemy has been using the : occasion to the tidiest advantage, and the trend of the negotiations has left the situation very unsettled because the position iva.s so uncertain. The ratification of the treaty settles the main features on a definite basis, and the way* is now open to proceed with regard to the details. Tin's of course, will not ho easy going. The subjects involved are so vast that in many instances years will be occupied in working out the results. But at least there will be a finality, and it is in this that the late belligerent nations will secure relief. Hitherto there has been a state of nominal warfare, but the time for tha t lias passed, and the work of f restruction. may now ,be begun jn real earnest. The world war lias sadly wrecked the nations involved'. The wreckage is wjthin as without, and in tho unsettlement a spirit of anarchy and discord has broken out. Experience has shown how difficult it is to earn’ on a war successfully and dovo(g the needful attention to domestic concerns, but with the peace treaty assured, the relative attention to foreign and domestic affairs may he reversed. There is a most difficult period ahead wherein domestic affairs require to be bandied satisfactorily. There is an impatient spirit abroad that is restless-1

ness itself. On the part of the people there must he toleration and a degree of patience in keeping with the magnitude of the task which is set the governments to reorder the new situation. The way for this is more open now that the treaty is an effective document, and if the people aid in the work of reconstruction/ in the right spirit of co-operation, the future can he | viewed with great hopefulness.

! A financial correspondent at Wellington I writing to the Press at Christchurch on Friday last says:—Brokers interviewed to-day take an optimistic view of the prospects and all of them are inclined to the view that business on the Stock Exchanges will be good provided there are no serious labour disturbances. Those closely associated with finance hold the view that very soon money will be dearer, that is to say, there will be a scarcity of loanable credit, and the rates of interest will advance. Even Mr M. J. Reardon, the well-known Labour leader who has just returned from a short visit spent in the United States, says:—lt seems to

me that we" are on the verge or a xeiy serious financial crisis.” This supports the view of Mr Harold Beauchamp, chairman of the Bank of New Zealand, who has , just returned from a visit to •London who is of opinion that we arc in for’a period of dear money. The two authorities are observant men, and cannot be classed as scaremongers. It, then, money is to become dearer then it is obvious that investors in shares will not be content with dividends of 4 and 5 per cent, when more can be obtained by investment in other directions.. There is nothing to be said in favour of prospective values, for this has already been anticipated with respect to most companies. If then, money is to be dearer in the near future it stands to reason that share values must decline. Sharebrokers are thus likely to be burdened with sellers with a- scarcity of buyers, and it will not be pleasant to advise clients to cut their losses.