“QUITE SATISFACTORY,”

Hokitika Guardian, 22 February 1924, Page 4

“QUITE SATISFACTORY,”

N.Z.'S FINANCIAL POSITION. TWO .MILLION MORE ROUNDS FOR WOOL. \V Kl. LINO TON. K.-1,. -’ll A well-known financial gentleman, uiio has been lor many years connect - cil with hanking in this country, stilted in an interesting interview with n "Tillies" representative that, so far as New Zealand is concerned, the tinnneial position is unite satisfactory, this Lei no brought ahout by the very excellent prices v.’O are realising for all classes of our produce, notably wool. "In respect to wool. indeed,” he .-.aid. "it is estimated that Me shall receive certainly not less than two million pounds more tin's season as compared with last, ir i- interestin'; to note the over-increasing popularity of the local sales, which this season, it is estimated, will touch something within the vicinity of -IPO,OOP hales. Representatives of all countries, such as America, prance, Italy, (lennaiiy, and Japan, have hcon actively competing for this staple. As to Japan, it may he added that the demand for wool is growing rapidly in that ennntry. This may partly lie due to the high price of cotton as well as the recognition of the superior hygienic finalities of wool for clothing purposes. Prior to the war the exports of wool from Australasia to Japan were approximately '20,000 hales, whilst for the current season it i- reckoned that these exports will amount to not fewer than 200,000 hales, a marvellous increase within a comparatively short time. "ONK FLY IN OINTMENT.” "There is, perhaps, iust one fly in the ointment, and that is the narrow margin between our exports and import- for the current financial year. This is in a measure due to the heavy importation.-- of motor-cars, motorcycles, and motor accessories, which will touch about three million pounds this year, and will appear under those heads about the largest item in our imports. No doubt motor-cars in many cases may bo considered as luxuries, and I eertainlv think they

hoithl he dispensed with bv a eerta

class of people who are still heavily indebted to their hankers or to lending institutions as mortgagors. "A BLESSING IN DISGUISE.” "To-day the rate of interest on first-class mortgages is G per cent— That is to sav, in respoct of properties which can show a wide margin as between the amount of the loan and the total value of the security, f understand that a good many who have made applications to the Advances to Settlers Deparment have boon somewhat disappointed at the drastic valuations of the department. Alany applicants thought they would readily obtain 75 per cent of tlio value an previously estimated for land tax purposes ; but- in this matter they have been considerably disillusioned, and rightly so, 1 claim, as in respect to land tax values I have hold that they have been based on too high an altitude and have assisted to maintain the fictitious values of farm lands in particular. Possibly, therefore, the action of the Government lending de part incut will prove a blessing in dis-

guise. ‘ArSTRALIA’S POSIT TON' COMPARED. "M hilst money in this country is obtainable at 0 per cent, as I have already mentioned, and the bank rate tor overdrafts ranges between GV and 7 per cent, it is interesting to notice •he strong efforts which are being made by the Commonwealth Government to obtain money in Australia for redemption and other purposes at G per cent, this being subject to Federal taxation only. I note that within the next 12 months Australia will have to raise approximately 70 millions sterling to provide for maturing loans ; and Australia’s constant applications for money will no doubt have a hardening effect, which will probably have a reflex action on this country. This on the ground, of course, that the rate for money, like the price of everything else, is based upon the inexorable law of supply and demand, and, like water, always finds its own level. ‘ln the meantime, the people of this country may be congratulated upon the improved financial position, which was confirmed by the figures quoted by the Rt. Hon. the Prime Minister at the big welcome home given to that gentleman in the Town Hall last week.”