A REVIEW.

Hokitika Guardian, 11 October 1923, Page 3

A REVIEW.

• high prices for stock, wool, better, cheese. THE LESSON TO BE LEARNT. : I WELLING lON October 8. ‘ In reply to your question as to the ■ position here.” remarked Sir Harold Beauchamp. ”( would like to say that New Zealand is mi doubt in a condition of financial ease, notwithstanding "hat many people say to the cuntraiy. 'lho.se who lomplain are the people who s are unable to raise money on the ini' different securities they have to oft fer. On the other hand, those who i can provide good security find the - least difficulty in getting ample aicom- . modation either hy way of fixed inwi drillts or on mortgages. The latter ate ■ now being leucwed: hy the big finuni ci.-il institutions on the basis of 0 |er i | cent., a- against the bl per cent, to i > per cent., which ruled a few months ■ ago. The tales required by the hunks oil fii'st-ela-s security are from ti! to ■ i per cent., according to the collateral advantage., in connection with such accounts. . PRODUCE PRICES. ‘dn iexpect to the prices ruling for our primary products and stock, these, with the exception of beef, are on the whole eminently satisfactory. Indeed. ] have rarely, if ever, seen such high prices as those which are now obtainable for Lit sheep in the wool, both fur livening and for stocking up purposes. E'-ciitly I -aw 17s Oil paid for large drill of ewes suitable for high country in the South Island. A- to heel, we have derived considerable it'iielit by the exportation of ,-evenii thousand I'iit bullocks and cows to \ ietoria to provide fur the shortage ill that. State through the prolonged drought. rhis has. been of incalculable benefit to graziers in tbi- Dominion. Farmer--. however, should no! le cartied bw xv with the idea Ih it Victoria is likely to prove a permanent market, because it is obvious Hint its soon as the drought terminates that market will he closed. The extiomely high prices of cotton tire aLo telling in onfavour, by causing a mol',, active demand for wool at higher i slues. !t is s-( i-favtorv to know that the oxpnrtaiinii ol wool to the East i- steadily expanding. “Through the severe winter exporieuei'd in some pails of the Dominion, until' iv in the Taranaki piovini i»l distriot. it is anticipated that there will lie a filling oil' in the quantity of butter ami eh | roilneed ; but ibis, it is expei-ted, will le more than coe.Mtei'hal.'ineed h,v the iiii-ren.-e ol values. Relerriitg again to tho outlook for wool, il may he mentiotted that it is estimated that thoie has been a diminution in the Mucks of sheen tlnutighout the v- <11 11l to the extent of no less than 100 millions, as compared with pre-war limes. Ai the same time it must he home in mind t hat the | o;m----hitimi of the world i- increasing at a

greater ratio than the pnrlilci iiin of sheep, width will all make tor a blighter nutlnk for the staple in which wo are .-o keenly inle:est'ed. ( O-OI’EKA I IN K ( (H,LAPSES. "Tit,, liiiaiiiial eoliapsi* of so many lat tilers' I'li-operut ivc trailing eom erns, due chii lly in incapable m uiiigeineiit and lack of 1.u.-iiic-s knowledge and exIK'l ii'iHi'. is to he gicatly deplored. But these lailutes may serve to point a moral i>:id adorn a tale. 'I hey show mat it i- just as presumptuous for a farmer to expect to conuol a large niercatilile niidcruking witlnuit business experience as il would he tor a town man to undertake at slim t notice the working of a la rut. In each ease it- is nht huts that experience and technical kiinii lodge -.tv leq i't: i" I. It is to be Impel that, in Hie event of it being decide 1 to create a dairy pool to siij en ise the shipping and marketing of butler and cheese- a most I i.-ky experiment. I think, having regard to the magnitude and importune,, ol this industry- ihc maturity ol the ini'iul cr~. of ilie hoard of control will he first eh • bu-iiH'ss men. BETTER AND CHEESE. •‘Ri'icntly 1 read with great imere-i a repnit litrnished ly Mr -I. A. Riddick. Chiet Hairy Coinmissionc!' lor C-naila. who visited this Dominion'll few mouths ago. In his report he paid a very high tribute lo our dairying methods, and pointed imi wltai a keen competitor Canada ha- to life, more particularly in regard to i-lnvse, in New' Zealand. Mr Riuhliek has already expressed lie opinion lieu, owing lo our dint-lie conditions, oui* distance from the Loudon ma-ikel, which al-i'ot-ds time for the cliecse to main tv in iruii-.it. and Hi,, iaet that our cows are grazed on artificial gras-c-. this country i- likely to le one of the greatest expoitors i f eheese in the British limpin'. Indeed. I think the liguies will prove that we have already attained that enviable posit ion. LIFTING OF AIt)R.'.TOR 1 CM. ‘‘Some people view with concern Lite lifting of the mnralo! iiini oil tina t-g.-iges at the dose of I9l!-L 111 tii.v opinion. however, there need be no real anxiety on that sente- firstly, because most mortgagees are ready and willing to renew existing mortgages on reasonably valued land at. say. ti per rent, per annum : anil, secondly, because, tic Goveiiiini'tit lias taken power to advance up to 77, per cent, on country lands, the value ol which i- dvliwmini'd by the tb-p-art nielit a I vabt-os. Nevertheless, there will be seine .Ii;!.i nlty in respect to those who have heavy mortgages mi land purchased a. inlhued values. LAND VALVES TIKI HIGH. "| have no reason In alter Hie opir.- j ion I have so 1 reipient ly expressed | üb-| lie ally. that laud '.'dues in thi- -.niu- | try lire tar 100 logit. 'Ve t '. ihits I ree.'litlv lieell en'liil'iui d b\ tile ileh’-j gale- ii'oni Great Britain, who five lately been louring ibis Dominion with ! the object of ascertaining what uitrni-l

(hi their return to Great Britain, it is anlieimited their report will he oi distinctly adverse nature on account oi these hi _di land values FI FFGTS OF 1 iFBFXTFRF TAX • rill' liigli pci'l- now ruling tor shares 111 first-class nnn|i allies naiieiue in th>“ plainest possible terms toe difficulty experienced by peo|ile in undine suitable investments for their surplus capital Tile raising of the lax on debentures from Us to 4- (.a! m the pound during the last session oi I’ariianient will not 1 think, force lenders, as was assumed liv some members of Parliament. to advance money bv way of mortgages to farmers, unless ol course they can show a fair margin, say. a:> to ■ Opel- cent., on their landed security. D uil! he noted that a recent i iu- ol deloenturs by a public hodv at • >! per cent, failed to tempt investors, an amount of approximately L'olrk'l onl\ being taken up by the public at the date fixed for the closing of the loiders. That goes to prove that lenders, who would pay income tax to the extent of 4' lid in tile pound, are not co.utent with 0.l per cent, investments. This means, of course, that in the future public bodies desirous ot raising money locally will have to offer liiglr r rates. |n other words, flic increased debenture tax. as is customary, is going to !v passed on. BKMAXI) FOR MOXF.V. “On the other band, the reduction m the rate oi income tax payahie l\ investment companies is already retie -ted in the lowering of the rate of inter at on mortgages trout (M to li per tent. In view, however, of the strong demand there will probably be in the n< ar future for money in Australia and New Zealand for the requirements of the various Governments and public bodies for fresh leans and the redemption ot old ones, for the development of industrial concerns, and for the erection ot buildings for business and residential purposes, it is quite unlikely that we shall see any very appreciable fall in the value of money for some time to

coino. Indeed, in Australia, it is al- - lutrdor.ing. In that country bonds of the Commonwealth Government, free of income tax, hav.e oemi sold at a price to yield round about (9 per cent. u> buyers. BANK OF ENGLAND RATE. "As to London. (Tie Bank of England rate remains at 4 per cent.; and Treasury Bills have lately been placed on the market to yield investors 3J per cent.. as against A per cent, a lew weeks ago. Short dated money returns front 21 to 2; per cent, per annum, hut loans required for a term ol years would have to he oll'ered at .something like 0 to ■>{ per cent. Ftom this it will be seen that there is no very great disparity between the rates ruling in New Zealand and Great Britain lor long term rmnniilini'iils'. BALANCE OF TRADE. ‘‘ln iinr trade with Great Britain, it j.- satisiaetory to see the large balance of trade in iavuttr of .New Zealand, but this creates a distinct difficulty ill tespaot of exchange, which on LondwtL ti-ilh hy telegraph and by post, is -tfa heavy liiscolttit. this has necessitated fairly high rates of exchange for drafts purchased hy l.anks against shiimte tts of produce from this country to England. •'ln coiichisi'-:;. I would observe that, comparing the conditions now existing in New Zealand with those obtaining in other countries, particularly those in tite Northern Hemisphere, we nave much to. Im thankful lor. The outlook is. 1 cm:-idol, better to-day than it habeen at any time since the signing ot tic Armistice. “The only Sly in the ointment, ol course, is the unsatisfactory condition of Europe', but I fancy there are signs that the dark clouds which have been hovering ovi r the horizon fur such a long time are likely to disperse. cording to a recent cablegram, the conIcreine between ttie I’rniie Minr-ler ol Gnat Britain, and M. I’oincare '.'.as

of a distinctly encouraging charm ter. Further, it i- gratiiying to know that Hie passive resistance ol Germaii,' ,ms been abandoned. 'I rue, on the part, < < the .1 tinker I'arty there are sum.' sign;

~j revolt wliieli may render it imp" si hie for the present Leader of H

Reichstag to carry on ; but I am inciiu .-d m beTieve that these Hurries 'l'.ay said; lie regarded as death striurgl" o:, I v.''