Untitled

Hokitika Guardian, 1 March 1921, Page 2

Trrrc fact that the banks doing business in tho Dominion have to-day increased the rate of interest for overdraft accommodation, brings to mind the growing stringency of the financial position in "New Zealand. Actually, however, tho country has so far weathered the financial position very comfortably. The Liberal Government of the past, if it did nothing else, deserves to be remembered for the cheap money schemes it made practicable, and; for the consistency J with which it kept down the prices of j money. The effect of that policy has been felt all through the war period, and it is tho break on the position today. The present Government desires

to emulate the success of the Liberals and has made strenuous endeavours to keep down the price for borrowed money. It began well by restricting the rates local bodies might pay, and despite urgent representations to make the rates more elastic, has used®its -powers in the matter very restrictively. Government likewise was moved to give the soldiers cheap money for repatriation purposes, and continued to pursue the lending of money by way of State advances on the economic lines laid down by the policy of the Liberals which contributed so much to th e land settlement of the country. The Government is still endeavoring to keep the lending rates down, but the fact of the banks rising their rate and with the possibility of further advances in that quarter, calls to mind that the money stringency is growing more serious and the position in fact is one of considerable concern. The advance of the rate will have some effect in restricting expenditure, and probably that is aimed at. The general outlook is such that the greatest care and economy should he exercised in all public and private expenditure while on the other hand, production and the earning of wealth cannot he too much encouraged. The country needs more revenue and less expenditure. It is at th P limit of its taxation and has got to live within its income. So also must the private individual. The increased bank rate plainly indicates the necessity for this frugality;

Tub Canterbury Progress League continues to take a very practical interest in the affairs and welfare of Westland. Arising out of tlu| recent visit of mem-bers-of tliu League is the suggestion of the Minister of Lands to take a personal interest in the drainage of the swamp lands of Westland. There are numerous areas of this character dotted up and down the Coast, and exper-

1 ience shows to what purpose they can be put if facilities are. given for drainage. In the North Island some very large Government schemes have been carried to fruition, and the country is reaping the returns now in the increased productivity resulting thereby. Our Westland areas are not as extensive as those of the north, hut they are numerous and scattered, and in tin 1 aggregate will constitute a considerable area. What has been done at Hari Hari, as referred to by the Progress League, is an example of the rich return to he derived in Westland. The La Fontaine swamp in the same locality is said to he a better area of laud than that of Hari Hari, while there are possibilities also at M.ikonui. Nearer home here, we have the swamp lands of Kokatahi and Koiterangi—fine tracts of country which drained will increase the pastoral products of the district very greatly. It is a well-timed effort, therefore, to seek for practical help from tho Government in regard to this matter. Another subject on which the Progress League seeks to help us. is in regard to the establishment of winter schools forearm instruction at Lincoln College, This strikes us as an excellent idea of great practical importance. Within recent times a large number of young men with restricted farming experience have gone on the land, and we are sure, to them such an opportunity as the winter school of instruction would he of the greatest value. The financial side of the scheme is not revealed as yet, but the idea is so praiseworthy that it should not he difficult to arrange the financial side of the matter. It appears to i>o a movement in which the. dairying and farming community should co-oper-ate heartily, for it will lead if supported to a considerable increase in local productivity.