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Hokitika Guardian, 4 May 1922, Page 2

In the course of his atifilial address to the stock holders of the Canadian Bank of Commerce, the president, Mr Edmund Walker, discussed the burden of Europe’s indebtedness a 3 it affects the prospects of the restoration of European currencies to parity with gold. “We need not worry,” said Sir Edmund Walker, “ aliout their debts to

i their own people, except so far as they | I cause fluctuations in the gold value of I their currency when dealing with the j outside world, hut their debts to the I United States and Great Britain and I the German reparation payments, which are closely connected problems, hang like a wet blanket over a world otherwise ready for new and hopeful action. It is not for ns to offer advice to the United States, yet we cannot fail to express surprise at the suggestion that the Powers owing money to the United States should pay what they owe in twenty-five years with 5 per cent interest. We do not believe that the Allied war debts should be cancelled entirely, although they are not ordinary debts, but represent the cost of commodities at two or more ! times the ordinary price, and of other help afforded by one nation to Another, in winning the war in which all were vitally interested. The literal meaning of the American proposal referred to is that the combined nations owing money to the United States would first have to ship, to that and other countries, sufficient merchandise to pay for tho foodstuffs and other goods they have to buy in America, which, before the war, reached 1,500,000,000 dollars in value, and in addition would have to ship annually more merchandise to the value of about 700,000,000 dollars, to pny the debt with 5 per cont inter- , est in twenty-five years. If Europe ,?iui}c! premie® such iv vwt sf '

goods, tlie result would be ruinous to the industries of the United States.”

An optimistic note was souteded by the Prime Minister, when speaking nt , the opening of the new public halls at Karaka and Wiri on Monday (says tho “New Zealand Herald”). Speaking of prices of produce, lie said that though they were not all that could be wished, there was still room for congratulation. We were not yet out of the depression, but were round the oonier. All that v.a K needed wtts confidence atid hard work. Tho price of wool had risen since the slump, and he had had information that early next season an iiutrea.se tin the price of crossbred wool might be expected. So far as butter was concerned, farmers had nothing to fear. They would get a remunerative price for years. Beef was the only line in which, for various reasons, he saw little chanco of improvement. After relerring to the provision which iiad been made, especially by city lsidies. for raising loans and providing work doling the winter, lie said that though a few weeks ago people had been talking of unemployment, he did not think there would lie much diliiciiky ill getting through the winter. Regarding ' finance, Mr Massey said he was glad j to say money was cheaper, the loan | just placed on the London market 1 having realised the best price l for i years, 5 per cent at par. 'lbis showed | that investors had confidence ill New j Zealand. He believed money would : not stand at 5 per cent, but was going j to lie cheaper- and the cheaper the I better for the farmer. Dealing with J the necessity for reduced taxation and tho efforts which had been made to reI dfice the cost of government and the j cost of living, Mr Massey said the increases in the bonus had cost £4,500,(VX’). 'There were also the pensions to soldiers and their dependents. Tn this the Government was not going back on a. single penny. Mr Massey also dealt with the settlement of soldiers on the land, and the amount which had been spent in connection with repatri'ation advances. Tn spite of all that lmd been said he was confident the I land settlement scheme would prove ■ successful, and provide tho country j with thousands of useful settlers. Al- ! together, he predicted that it would j not he long before the country return- ! ed to pre-war prosperity.