The Guardian (And Evening Star, with which is incorporated the West Const Times.) TUESDAY, SEPT. 4th. 1923.

Hokitika Guardian, 4 September 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Const Times.) TUESDAY, SEPT. 4th. 1923.

DOMINION FINANCE AND TRADING.

Now that Parliament lias cl wed down, the Dominion will begin to think a little more closely of its finance and trading with which is bound up so essentially the material prospects of the country as a whole. As a financial correspondent has put it there are two schools of thought among commercial and financial men in New Zealand, each taking exactly opposite .views of the immediate future of the country. One school, including the new Minister for Finance (Mr. Downie Stewart), a man of cautious views at any time, is convinced that, mpid as has beeif the progress of tno Dominion out of the depression which began in 1920, there is still a long way to go before it is back to its pre-war condition of a substantial balance to tho good in respect to its exports as compared with its imports and in tho relation (of the deposits held by the banks of issue to i-o advances of overdrafts ; further, this school is not satisfied that tho oversea markets will maintain the current prices of wool and meat, while they can point to steady declines in both the butter and cheese markets. On those four main expoits of New Zealand the prosperity of the Dominion depends, and they have a very great influence upon the value of landed properties and consequential rateability of such properties by local authorities and their security for advances nnd mortgages. Tho heavy increases in the values of dairying and sheep lands from 1914 onwnrds were attributed to the prices that the British markets were paying foT meat, butter and cheese, and wool, especially when the British Government was the sole purchaser. Now that prices have fallen back, land values have declined,

but not to the same extent as produce values. The other school, while admitting that land values aie high in many localities, contend that it is possible to make £IOO per acre land pay at least 7 per cent., with a fair margin, even with buttorfat as low as 16Jd. per lb to the farmer. All will depend up* on management they say—speaking of daily land, which is - generally meant when high land values are under discussion. The return which is reckoned safe, averaging the values of all dairy lands in the Dominion is Is Gd per lb. That pays in the great- majority of eases and much more than pays in many others. To return Is Gd. per lb. for buttorfat, buttor would have to return 190 s per cwt., and cheese !)5s per cwt. in the British wholesale markets. That future markets will average these prices tho optimistic school appears to .be assured. It also |>oints to tho generally aecopt* ed fact that wool production is much below consumptive demand; and, besides, t.ho trend of fashion, by reason of tho high" cost of fine wools, will be forced to tako a direction favouring tweeds instead of worsteds, and so calling for inoro of t.lic cross-bred wools which constitute 87 per cent of this country’s clip. The meat and tallow markets are believed likely to remain at round about, present prices, which are remunerative to producers, except of hoof. Efforts are- being made to stimulate greater consumption of beef in Now Zealand, but there are hopes of an outlet on the Continent, so soon as tho political atmosphero is clearer there.