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Hokitika Guardian, 18 July 1922, Page 2

At the Imperial Conference last year the Dominion Uremiers and India’s representatives approved of the British Government’s scheme for a chain of wireless stations for the Empire wlncll was based on a report of 1920 by a committee under the chairmanship of Sir Henry Norman. In agreeing to the scheme, however, Mr Hughes stipulated that Australia should retain full freedom ’ot action us to the method ill which it would co-operate. The British Government scheme was for the State to erect mid operate stations in (England. Egypt, East Africa. South Africa as one chain, ajid in England. Egypt. India, Singapore, Australia, with an olf-slu ot to Hong Kong from Singapore as another chain, a third station being erected in England for eommuiim(atinn with Canada. The scheme was criticised chiefly on the ground that Australia and India would not work direct with England, hut through intermediate stations, which, it was claimed would entail delay in the transmission of messages. In it paper read in London ill May before the Royal Society of Arts, I’rofeSsrtr W. H. Eceles, vicechairman of tile Wireless Telegraphy Commission outlined tl e history of the developments lending up to tile Commission’s 2000-mile link report which was discussed at the Imperial Conference. Signor Marconi disagreed with the lecturer’s views relating to a limited effective wireless range. He was of opinion that no range was too great to he traversed by wifeless by means of proper apparatus. Mr Godfrey Isaacs, managing director of the Marconi Wireless Telegaph Company, pointed out that Canada had abstained from participation in the Imperial chain scheme, and Australia. India, and South Africa had condemned the report, preferring direct communication for which Australia had concluded a separate contract;

Tun reduction in the Bank of England discount rate from 3} to 3 per cent, was not unexpected by bankers, comments a Wellington writer, who are wondering whether the rate will fall to 2 per cent., which is the traditional minimum rate of the Bank of England. After the Baring crisis in 1891. when banks almost all over the worl 1 crashed and confidence was shattered, money accumulated to such an extent that the bank rate stood at 2 per cent, for a period of twenty-six months. Investors were shy of all ecurities except gilt-edged and consols which in those days carried 3 jior cent, interest, were quoted on the London Stork Exchange at £ll3, the yield being ext'eniely small. The open market rate for fine trade paper ranged from l per cent, to 1J per cent. The New Zealand Government was then able to float a 3J per cent. loan. It seems likely that history will repeat itself, Trade is dull and investors appear to prefer the gilt-edged class of securities with their small returns, to anything of u speculative character. It Ls evident that financiers and business men in London consider it almost hopeless to stabilise European currencies, and until there is some fixation in this, trade cannot lit? arranged satisfactorily. Cheap money is an advantage to us just now, because our local bodies who have the privilege of borrowing outside New Zoaand can obtain all tho money they require in London on favourable terms. Napier, Wanganui and Nelson borrowed in (London recently, paying 5J pe r cent, and the loans were issued at, £9B. Now such loans could be issued at par. On the other hand, if cheap money means dull trade, our primary products may suffer in the Home market. The cheapness of money in London will not affect the position here at present, fo r we appear to be short of banking credits.