Hokitika Guardian & Evening Star SATURDAY, DECEMBER 11th, 1920. THE. WEEK.

Hokitika Guardian, 11 December 1920, Page 2

Hokitika Guardian & Evening Star SATURDAY, DECEMBER 11th, 1920. THE. WEEK.

It sounds almost as empty as a voice crying in the wilderness to make any plea, for goldmining jin' thetfe times when - the industry seems to be so studiously neglected by the Government A gentleman speaking in Wellington the other day said: “More interest should be taken in mining in this country. There is a general apathy amongst the public,” No doubt the lack of a forceful expression of public opinion accounts for the Government neglect. Where the public assert themselves and make a noise to the point of being a nuisance, the Government is attracted and will do something, even to the pledging of the country to millions. Where faddists get work and by their persistence and influence follow up their theories with platitudinous repetition, they also gain the Government e ar and hundreds of thousands of pounds are at their disposal. Hut the gold miner who did so much for the country, and was the pioneer to establish an attractive industry here which lias drawn thousands to our shores, in not heeded and his claims for recognition are ignored.

Attempts have been made in the past to focus public opinion but without success. While the Government will go into extensive research propositions for other matters, the geological side of mining is not taken up in that practical way which the importance of goldmining warants. The Dr Bell scheme is in need of reviving and carrying on from where operations ceased. Certain theories of the geologist were put forward. The}- are in need of a thorough testing, and the Government is the right party to act now. For lack of practical sympathy the goldmining industry is languishing and nothing of a concrete nature is being done to save it. There is a costly Mines Department maintained in this country but by its record of late years it is more ornamental than useful. Important officers are created at large salaries, and a commission should I:>c set lip in these days when; commissions are all the vogue, to doscover what return the country is getting from theso costly appointments. This office extravagance is a serious matter to the ’taxpayer, and it is time public opinion formed definite views on to subject.

Thu shortage of production in gold is going to be a world question, and it will play its part in economics. When wo recall that in fifty years New Zealand has produced nearly eighty-six million sterling of gold, it must be recognised what worth the industry has been. The country’s Btore of gold is not exhausted, of that we may be sure, and it would pay to set about dis- j covering more of the precious metal. A find"' wiR attract population quicker than any other commodity, and it employs a construing population who yield large customs revenue to the country. A gold find is a prime ad- : vertiseinent and would save enormous costs in immigration. It would tend to open up the country, give fuller play to secondary industries, and assist to people the waste places. Now that Mr Massey is expected this way next month the remnant of the gold mining cominu--1 nity should associate themselves in making yet another effort to induce the Government to initiate a gold-min-i ing policy and in the interests of the future of New Zealand do everything possible to place the production of gold on a profitable basis to the linrd--1 working producer.

| During the last five seasons the Imi .penal Government lias paid to New | Zealand £150,204,726 for the purchase j !of meat, wool, butter, cheese, hides j . etc. Thirty millions a year from the I | Homeland indicates that we have had a good market open and available, and-j j the Motherland has certainly Iteen well- I disposed to her daughter Dominion, j The volume of trade gave New Zea- j I land its favorable showing during the j J war period, and has enabled this country to enjoy an unexampled term of , prosperity. Wo do not know that the 4 people as a whole are as generously ? grateful for the favors received as they should have been. To have had such a cash customer, who was able also to .ship the goods away from this remote | part of the world, is something to ap- I predate at a high value. Looking to I the world position to-day we should \ be more grateful than ever for the j generous treatment of the Motherland j which did this great business with us " in such an honest and straight forward | manner. New Zealand has done well, admittedly so.

Arnopos of the jyjaneial position of the country which is so much in mind of late, and which is brought forward so prominently by leading financial critics from time to time, the Premier Joes not 'share the views held in some influential circles in tile Dominion to the effect that New Zealand has reached a .point where it is "impossible tliat it should bear a much heavier strain.” Mr Massey told a northern interviewer that while there was, in brief, some cause for caution, and the wool situation in particular was unsatisfactory, lie saw no signs of any threatened financial collapse. 2 “You see, this is nil exporting country,” said the Prime Minister; ‘‘a country which sends its primary products abroad, chiefly, as you know, to the United Kingdom. We reflee': 'o a great degree consequently what happens there. If there is a setback there we naturally feel it here, and to a great extent that Is what is occurring now. During the war the Home Government relieved us of all trouble in connection with our main exports, and provided the shipping. Now, although we still receive a percentage of insulated space, we are returning to the ordinary ways of marketing, and so are subjected to the fluctuations that must occur. We have had, hitherto, good balances in London, but now they are practically exhausted, and until the new exports are sold and funds accumulate again, there must be a certain stringency. I look, however, for an improvement as thq new season develops.” Questioned as to the general import situation, the Premier said that what had happened was that importers had ordered extensively after the war, and a great quantity of goods had been delivered within a very short time. But that state of things would speedily rectify itself and while it might cause inconvenience, it would not be of the most serious kind. Already large quantities of dairy produed are on tlieir way to England and within a week or two the first shipment of ‘free’ meat will be sent. That is one of the chief features of the situation, and it is significant of the change for the better I look forward to. Mr Massey, on the subject of wool guarantee, saitl that the Government’s arrangements were practically complete, but until he returned south, he was not In a position to state what the terms were. The note of optimism is good, and it is well to remember that for long years past the balance of trade has been in favour of this country. Ever since 1886 our exports have outbalanced the imports, so tliat a temporary set back now is not of the jnoment it might appear. Large quantities of orders are being executed now, which for want of shipping and lack of manufacture could not be supplied earlier. The inrush of imports will soon taper off, and with exports getting Home again, any deficiency in a balance in the right side will soon he making good again.

The Prime Minister lias done well to put a bold face on things, but it woulu have been better if he' had told the country something of the policy to control wasteful expenditure going on in Government departments all over the

Dominion.- The Auckland “Observer” has something practical to say on the subject, and the paper has said it so well, that we venture to reprint a portion of its comment. It says:—The Conference of Chambers of Commerce passed a remit calling upon the Government to economically administer the departments, and to eliminate waste. But what good can such a resolution ever accomplish ? Mr Massey is pot likely to take the least bit of notice of that, and the wasteful expenditure will continue until the finnn ■ rial situation becomes very ugly, when there will be wholesale dismissals at a time of distress, and thereby, continuing and intensifying the distress. Tho money market is now very stringent, and it is very difficult to raise money. To the deputation from the Chambers of Commerce which waited on him, Mr Massey uttered a pathetic whine about the loan, and a “soldiers’ loan, too.” Mr Massey did not, however, tell the deputation that he was shamelessly exploiting the capitalists by offering them a rate of interest

much below the world’parlty for loanable credit. He was very -solicitous that his farmer friends should get world’s prices for their produce. All the States of Australia and the Commonwealth offered higher rates than New Zealand, and the last Commonwealth loan of £25,000,000 was for soldiers. The discharged soldiers of New Zealand arc not wanting any charity from anyone. All they want is a fair deal, and they are ready to give a fair deal to everyone else. Why should farmers get world’s prices lor their produce and capitalists be forced to he content with what Mr Massey chooses to give them for lending their money—money that they must lend ?

i Pursuing the question further the j Auckland paper touches on another | general aspect of the question that is | not as widely known or as ' clearly j understood as it should he. By amended regulation the limit of the note issue by hanks is extended by adding to the total amount of coin, bullion, and public. securities all held by hanks in New Zealand the amount of all. war loan advances made by banks in respect the six million loan under the Discharged Soldiers’ Settlement Loan Act, 1920. Mr Massey is apparently forced to resort to this wretched expedient to secure the loan (says the “Observer ) and the effects of this inflation of the paper currency are likely to he adverse. The increased note issue will continue to give to the country an impression of prosperity, which will he wholly false, j and the paper pound sterling will dei preciate further, and the cost of living j will advance. The effect on local in- ' dustries will not he eneouarging, for it j will mean a further increase in wages, j ' resulting in the costs of production ex- ' panding. In Britain the cost of living i arid the cost of production are tending downwards, and the same is the case in the United States. It is obvious then that we will he able to import [ goods even with the high Customs | duties, to be retailed locally at prices | below that at which it would' Be posi sihlc to sell “made in New Zealand” j goods. By this means we will get the i I corrective, that is to say, if the pro- • ducts of our secondary industries can j he undersold by imported goods, then the turnover on the local product will shrink and factories must reduce .hands or close down. It would be impossible for the employees to reduce wages, which would be'the true remedy, because in the cost of production, labour accounts for fully 80 per cent of the cost. The reduction in costs will he brought about by shortening .hours and by other means, all of which would tend to impress labour with the necessity of modifying demands for wages. ! In the meanwhile, there is the November bonus, which has to be faced. The whole of our financial and economic troubles arise from the wasteful expenditure of the Government, and the want of reasonable economy in the administration of the departments. The ] people are, of course, mostly to blame, ! for the impression appears to he ini grained that the Government posi sesses unlimited funds, and is capable ! of undertaking .all and every kind if j enterprise.