The Hokitika Guradian SATURDAY, JULY, 29th, 1922. THE WEEK.

Hokitika Guardian, 29 July 1922, Page 2

The Hokitika Guradian SATURDAY, JULY, 29th, 1922. THE WEEK.

“Upon easy and practicable finance depends the success as well as the prosperity of the producer,” said the president of the New Zealand Farmers’ Union in his annual addresns at Wellington this week. “ 1 do not wish to appear as a carping critic of our banking institutions. They have done as well as it lies in their power to do. I believe that in most eases our banks have stroined every nerve to carry the load which in the last year or two has been placed on their shoulders. My humble criticism is directed at the system—a system which is admittedly imperfect. npd which criticism and rnn.

fitructitc proposals for reform must be of some value, in improving. If we can build up with Government aid an agricultural banking system in New Zealand we shall have laid the foundation of prosperity that shall not be ephemeral. What is needed is an 'educative campaign so that the whole question may bo more fully understood. Ate are entangled in conservatism. The system which served our fathers is one wo are loth to disturb. W r e are slow to realise that there can be any safe system of finance that is not entirely based upon a gold currency basis, and when any proposals are made to us which contemplate changes in that respect w e are apt to imagine that it is the bale of paper and printing press idea under another guise. Nothing of the sort is suggested! The Danish and German systems have stod the test, and are adaptable to our needs. Modern ideas go very much further than the suggestions tile Farmers’ Union has put forward.”

In his place in the House this week, Mr Sodilon, the Member for Westland, Ims been bringing under the notice of the Government the possibilities of cot-ton-growing on the West Const, as referred to bv the late visiting British Empire Exhibition Mission. The subject of cotton-growing is becoming Em. pirc-w'de. Tn a speech in Melltonrne the (i'Ovcrnor-Geilernl. land Forster, advocated cotton-growing in Australia, lie said that it had been reported that the quality of cotton grown in Queensland was supreme. It was from 25 to 50 per cent, better that the middling American crop, which was the standard throughout the world. There were enormous areas suitable for its cultivation. While the consumption of cotton had expanded enormously during the last three or four years, the production, owing to a comparative failure in America, threatened to be short, and already the market price for raw cotton appeared to he on the increase. “There is a tide in the affairs of man which taken at the flood, leads on to fortune.” The fortune in this ease would not t>o for the big man with an enormous holding, but for innumerable small men scattered over the Commonwealth. “ The tide is flowing,” added Lord Forster. “ Xow, gentlemen, let us have some of that great enterprise and resolution which characterised the pioneers of this great Commonwealth. T.et us all put our backs into this thing, and see that it is brought to success.” Something of the same spirit might well animate Xpw Zealand in respect to the subject under consideration. Ai.riiOiTCH the London financial cable messages indicate that there has been a certain amount of uneasiness with respect to the German reparation problem gilt-edged securities have firmed on the London Stock Exchange and credit appears to l>e accumulating (says the “ Dominion”). It is further stnted that industrial shares have not felt the influence of cheap money, for it is the belief of investors that there can he no important revival in international trade until the economic outlook in Europe improves. The Bank of England minimum discount rate is unchanged at 3 per cent, but it is not likely to remain at that rate very long. In the open market throe months’ bills are being discounted at £1 17s fid per cent, which is very much lower than the bank rate, and as credit tends to accumulate the lending rates will drop. It is very probable that the bank rate will ultimately be reduced to the minimum of 2 per cent, as it was in 1890. when i wing to the stagnation of trade there was a vast accumulation of credit, and gilt-edged securities were selling at boom prices. Money is tending towards cheapness in New Zealand also. Credit has been accumulating during tlie past twelve months, the excess loans of' the hanks have l>ecn very greatly reduced and as imports are still being very much restricted the prospects are that bv the end of the year the banking position will be normal, and the overdraft rate reduced to the normal level of 6 per cent. Whether there will he an abundance of money for investment in mortgage of real estate is quite another matter. Gilt-odgofl securities and the debentures of local bodies will he received with great favour by investors for some time to come

In one of those court pleasantries, for ; which the versatile Mr Alpers is , notable, the learned gentleman had . occasion to refer to “little Hokitika.” j where it would appear Mr Alpers : thought the early closing section of the j Licensing Act was not observed. Ap- 1 parently. Mr Alpers is one of those * gentlemen afflicted with a. beam in bis eve which prevents him “seeing things” j nearer home. If he were as observant , about the metropolitan cities ns he takes credit for being when on circuit’ ,

business, he might he n little more on- j lightened. We suggest Mr Alpers should remove the beam without delay. or else see nn eye specialist! Apropos pf the little Joke perpetrated

’ by Mr .Alpers at tbe expease of Hokitika, the story goes that the local ' police received the usual official prod, with the result that a hotel raid followed. While the police wene bent on doing their stern duty, the police staj tion was found to he on fire by a passerby who promptly entered the smokefilled promises, and subdued the incipient outbreak. This incident supplied an interesting example of cause and effect. The jocular Mr Alpers, in the august precincts of the Appeal Court, cracks his joke at the expense of a faroff town, while at this end a crackling fire seeks to embrace the police station while the local force endeavour to ascertain what foundation there is to the allegations of the legal joker of Christchurch City. Hut all’s well that ends well. The police quarters were saved and no harm was done by Mr Alpers’ joke beyond drawing attention to his own defective vision in matters more immediately surrounding his own goings out and comings in

It is perhaps a useful sign of the times that the Forestry Department is be'iig reviewed. 'Hie Prime Minister announced lately that he would look into the position, and the fact that the New Zealand Forestry League sent a deputatoin to Mr Massey on the matter, is evidence that the Premier means to go about the business. Mr Massey’s reply was diplomatically sympathetic, and it. can be assumed with a- good deal of cortainty that if it is possible to conserve the Department at all it will be done. Tint further evidence of the overshadowing “ cut ” is noticeable from the late debate in the H >use. Th.* ; Lender of the Opposition had suggested that the new Forestry Department should he absorbed into the Lands De- | pnrtment, where it could he managed ! most economically. It was a practi-al suggestion to make, and if Mr Massey looked into a retrenchment proposal along such lines lie would find ways and means of reducing the cost of the separate department for forestry with out seriously impairing its efficiency for work along practicable lines. Mr \V. H. Field M.P.. however, came to the rescue of the Department Inter I in the debate, and contended that the 1 cost of the Forestry Department was ; not excessive for although a sum of | £112.000 appeared on the Estimates ! the net expenditure was in reality I £B,OOO as the balance had l>een made up by royalties on timber cut 1 This is an interesting confession to make | public .for it indicates more than one l serious point. It shows how very I costly the Department Is. run .on the I preseht lines! It shows, too, that' the I Department is living on its capital— I its chief asset—the' standing timber, 1 and it shows further the enormous ! amount lost to the local bodies for I revenue purposes, and which very • large sum has to he made up by the ' ratepayers who see legitimate revenue being taken, willv niily. hv an omnivorous department, and the lost in- . come has to be made up by the ratepawers in rates or with less improved roads. On tin* other side Of the ledger we fear the debit becomes more alarming, for we ask what is there to ■ show for this £IO.OOO a month, which th Department is costing? Whait tangible return is being received? The speakers at the deputation to the Premier and in the House enlarged on ' the position ns affecting the Department. but its usefulness to the country is not in its huge expenditure. What is wanted is some outward and material evidence of it s worth in rc- ■ gard to reafforestation, and in conservation of timber country, without unduly hampering industry and delaving development.