The Guardian AND EVENING STAR. SATURDAY, MARCH 24th, 1923. THE WEEK.

Hokitika Guardian, 24 March 1923, Page 2

The Guardian AND EVENING STAR. SATURDAY, MARCH 24th, 1923. THE WEEK.

TaUKA.noa has the Government thinking and acting very hard. The business of the country is going by tlio hoard while Mr Massey perambulates the electorate to support the Reform eaudidate. The Prime Minister is too busy to attend to such matters as the opening of the Arthur’s Pass tunnel and he has passed the job on to Mr Coates. Mr Coates seems to he equally engaged and cannot attend to the matter till alter Tauranga. Meantime Sir Joseph Ward has set such a pace for the Government that Ministers find it difficult to keep up with him. However they are doing their best. Mr Massey now talks of taking “the risk” of reducing taxation hv a cool couple of million. Mr Coates who could not face penny postage last month is now disposed to do so—even though he talks of increasing telephone charges The long-suffering taxpayer will be disposed to hope that a Ward would enter the lists every six months as the best aid of all to shake up the dry bones of the Government. Tauranga is getting the benefit of much eloquence and as every platform is strewn with political promises from the Ministers the coming winter should not he a cold one in the Tauranga electorate after the heads of the Government spending so much time within its hospitable borders.

Tint eventful poll comes to pass next Wednesday. All sorts of opinions arc offered. Tf we turn to the Reform organs, one paper says Sir Joseph “cannot he expected to win.” Another says that Sir Joseph “may sweep the electors off their feet, in the rush of the election, with his glowing eloquence." Mr Massey threatens a dissolution and talks about the danger of “Red Feds though he himself was the chief actor responsible for the return of some of Mr Holland’s supporters. .Anyhow, wo know that the Liberals and Mr Holland's supporters will not mix—neither party is anxious for a fusion, so why worry about Mr Holland’s party at this juncture. If Tauranga turns the whole matter over in its own mind seriously, the question the electors will he asking themselves at this juncture, is who will he the better man to send to Parliament. Sir Joseph Ward or Mr McMillan? That is quite a simple way of deciding the issue for Tauranga, and if the electors of Tauranga are of the average character of Xew Zealand electorates the answer is easily forthcoming. The splendid services of Sir Joseph Ward to this country are a guarantee of his ability. aix3- the manner in which he has perturbed the Government now, show that Sir Joseph is a persona gratia in the electorate and Mr Massey and his press are bent solely on discounting the candidature of the man who can host serve New Zealand at this juncture.

\propos of the press criticism now being offered hy the Reform papers, it is interesting to note that it was only about a fortnight since the Dominion looked to Sir Joseph Ward as the agent of a movement which would “remove artificial barriers” and bring all the good patriots together—for the salvation of course, of the good Reform Government. Tf Sir Joseph's political acumen and large influence were then considered sufficient to build high hopes upon, it is reasonable to suppose that the “Dominion” a couple of weeks pact considered the Tibet ft \ “tatostnatj

anything but a wobbly- wizard in finance, whose opinions and policy would occasion “surprise and disquiet.” Tlio Massevites, remarks the Lyttelton Times on this subject, should really make up their minds about the Liberals. Either they have sufficient respect for them to desire their company or they have not. One day they are calling loudly for assistance and asserting that there is nothing real and tangible separating the two parties, while the next day the columns of their newspapers are devoted to abuse. Those are not wise tactics; they are not sensible; they are not excessively intelligent. We guarantee that if Sir Joseph Ward wins the Tauranga seat the Reform politicians, who then will be in an even more precarious condition than they now are. will be falling over each other with suggestions that Sir Joseph is the man of the hour who alone 'an | avert the disaster of converting the j verdict of the people, as expressed at ! the polls, into the concrete fact of the ! Government’s dismissal from office. In ■ the meantime, we suggest to the Reform spokesmen that, as a matter of I policy and tactics, they ought to be j pice and polite to the Liberals.

Thkhk is just a slight indication for hope for the settlement of the FraneoGerinan impasse. An English financial journal of a recent date remarks: Opinions may differ as to the wisdom of the serious stop taken hy France in occupying an important industrial area in Germany, and a good deal can he put forward in justification of that measure, but probably few wiR deny that the economic recovery ol Europe is thereby retarded for an indefinite period. It may he granted that Germany, whether she was in a position to do so or not, had determined to avoid making reparations as long as possible. This may he accepted, hut it does not follow that the steps taken n v France will have the desired result, and it may lie that when the present crisis is over the position will he worse than it was before. One effect ot recent developments has been to bring fresh ’ilemoroliza tion of the foreign exchanges, making it still more difficult for the world as a whole to trade. It would be a mistake, however, to suppose that the collapse of the mail,, which has been one of the noteworthy events of late, has been directly due to the French occupation of the Ruhr. That occupation lias merely brought, matters to a. head by precipitating a slump in the mark which was previously warranted by the extremely unsatisfactory economic state of Germany. As frequently pointed out before. Geimany has inflated her currency on a ruthless scale. Between January 7, 1922, and January 6, this year, the note circulation of the Reiehsbank went up from 113 milliards of marks to 1,336 milliards of marks, an expansion <>f which was necessitated mainly hy the fact that for the first nine mouths of the financial year, that is, from April 1, io the end qf December last, the expenditure of Germany amounted to 1.571 milliards of marks, of which only 315 milliards were met from revenue, the balance being covered hy increasing the floating debt, chiefly in the form of Treasury Bills. Every week, too, the position in this respect becomes worse, for the latest return shows a note circulation of about 1.438.000.000000 marks

1 iik effects ol inflation in Germany a »e two-edged. What effect this inflation lias produced in Geunauy itself is uroiignt out m the last monthly reviews issued by tue Bank of Liverpool and .Martins. There 't is shown that tnnmgh this inflation the savings and investments of a large section of the community have vanished. l'°r example, a mail who invested 1,000,000 murks, or 650,000 when D.e mark was at par, in German Government securities has now got only about £ll, while the man with a life insurance policy of 100,1.00 marks, or £5.000 at par, finds that the amount represents little more than £1 at the current exchange. The inflation has been a most serious matter for creditors of all sorts. It is on record, for instance, that a farm was purchased with the aid ol a mortgage when the mark was worth much more than it is now, and subsequently the purchaser, hy selling a single animal of the stock he acquired, was able to pay off the whole of the mortgage on the iarm. While* eiediti,rs have thus suffered, traders have made big fortunes which, for the most part have been sent out ol t' e country. The depreciation if the mark has induced all sorts of trickery from which the Gel man Government itsell sometimes suffers. It. was recently admitted In- a representative of the Ministry ot

Finance that coalowners had been allowed to defer payment of 22,000 million marks, the accumulation of the 40 per cent, tax cm coal. In September they were allowed to defer payment of 4,600 millions, in October of 6,100 millions, and in December 11,200 millions. -Vs marks were quot'd in September from 5,200 to 7.IKJU! in October trom 7,300 to 20,800. in Not ember from 19.800 to 41.000, and in December from 25,750 to 38.500 to the £, it is only a matter of calculation to arrive at the enormous gain to the industrial magnates and the corresponding loss to the State.

No doubt the European situation has its reflex on British iinanee, and as in that quarter we have to watch the financial barometer, the Home position is not without interest. Besides the handling of money internationally, has far-reaching effects and the views of an English banker on be outlook are certainly informative. An interesting survey of financial and commercial conditions was made by Mr F. C. Goodenough at the annual meeting of Barclays Bank late in January. The speaker evidently considers the time not far distant when Britain will lie in a position to take gold from America, but before returning to the gold standard he considers it necessary that, England should strengthen the reserves against currency, and also perhaps, create additional gold reserves to be held by the Treasury or the Bank of England. But a return to a free gold market should, he said, he consistently l*efore the country. Mr Goodenougli also went into the question of foreign loans raised in London. These, it was hoped, will result in direct orders to Britain, but even if this is not always

practicable, tlie country benefits directlv or indirectly. For example, if a loan should be granted to Norway, and instead of spending the proceeds in the nurchase of goods from England, Norway should prefer to use the credit for financing her purchase of wheat from the Argentine, it is possible that the latter country, having the credit transferred for her benefit, might use it for the purchase of steel rails from Middlesbrough. Alternatively, she might use,it to finance her purchase of goods from America, in which case America would then have the-credit- in London and might use it for financing cotton from Egypt to New \ ork, or in a variety of other ways. It would always remain a credit in London until discharged by the shipment of goods or of gold, while the danger of too ninny credits being opened would be checked bv the foreign exchanges

The Hospital Board, from circumstances beyond its control was constrained to accept the resignation of Matron Little this week. Miss Little lias rendered very faithful service to the Board and the public for many years, and all who came in contact with 1 her must have appreciated her splendid work. The lady is worthy the greatest respect for her self-denying attention to duty in a profession rendered notable hy the originating work of Florence Nightingale, of whom she is ' a worthy disciple. It is greatly to he regretted that Miss Little’s health has broken down in the public-service, and ; anything the Board may do to recognise those services will be endorsed very generally hy the public aware of the great services which have been rendered to suffering humanity hy one who was devoted to her duty and impelled with the greatest desire to ease the suffering and the pain of those who passed through the Hospital. Matron

r.ittle. too, was in every sense a matron to the staff under lier, and in giving up duty and active service for the time being, it can lie safely said no one could he held in higher esteem and personal goodwill than Miss Little.