WELLINGTON NOTES.

Hokitika Guardian, 11 April 1924, Page 1

WELLINGTON NOTES.

BANKERS’ DIFF!CUT-TIES

(Special to “Guardian”.)

WELLINGTON, April &

Most people if asked whether hauliers had any worries or anxieties or difficulties to contend with, would answer glibly enough that they could have nothing to fuss about, ami yet, to-day, bankers are the most worried of all the business community. The exchange problem is enough to give every executive officer in the six banks a sick headache, and the cxcahngc with Australia is ahsolutloy the most difficult problem they have to deal with. There is a constant trade between Australia and New Zealand, but unfortunately, we import more from Australia than we export to that country, and are tlierelore continually in debt to the Commonwealth. During we imported from Australia goods to the value of £1,253,-157, and exported goods to the value, of L'2,()11,iUO, so that on balance we owed Australia CP,611,487. We import a good deal from the East such as tea, sago, kapok, etc., and remittances from these have, in many eases, to be sent to Australia, where the headquarters of (bo Now Zealand importing companies are located. Last year considoraUle quantities of coal had to bo imported from Netv South Wales, and now it is necessary for tis to obtain considerable supplies of wheat, bran and pollard from the Commonwealth. SETT!.EM ENT DIU FI CULT. The indebtedness to Australia must be discharged, the hanks must find the credit to do so, and it is finding this credit that is causing the worry. Two or three years ago when most of the hanks were short of credit in London it was easy enough then lor a bank in New Zealand to provide an Australian bank with a credit ill London bv a telegraphic transfer, and a premium as high as !M per cent was paid for this. Hut now tho hanks have a plethora of credit in London, through tin: borrowing of the States and local bodies, ami settling accounts in that maimer is difficult and costly. Yet settlement has to be cdcctcd, hut that is the worry oi the banker. It may he asked why there should he this difficulty now. The answer is that there is an embargo on the export of gold. Trior to the war the rales of exchange would vary, hilt, they could never go beyond what was know nas the ‘‘gold point.” the point at which it would pay to settle in gold, that is export gold. Tills method of payment is not available now for gold cannot he exported without a permit. The hanks arc having flic same difficulty in transferring credit from London to Australia and New Zealand. The hanks would he glad to see less imported from Australia or more exported to that country. Money is becoming dear in Australia, ami naturally the Australians want all that is due to them. THE COST OF SUITS.

Recently a deputation lroni tho Master Tailors’ Association waited upon tin' Minister lor Labour, (Hon J. G. Anderson). and - protested against factory made suits being described as ‘‘hand made” and “tailor made” and contended that the public was deceived by such terms into believing that the suits were made by a ‘•bespoke” tailor. A correspondent who elaim.i to know both sides ol tinquestion writing .to the “Evening Post” castigates iho Master Tailors’ Association lor the attitude adopted, lie savs “every man knows that day a suit made by a. bespoke t ailo.* costs him from CD Ds upwards, hut lbaverage man does not know that suits of iho same quality, macula! and lining, are. of equally as good, if not higher, standard of work.mu ship throughout can he obtained lot CT in;m those not concerned in keeping up the high prices charged by Hie .Master Tailors’ Association.” This is a strong indictment ol the tion, but the correspondent sets out to justify himself by pointing oM taut the manufacturers of suits on a huge scale, that is factory made suits, can effect the following savings:—(l) By purchasing materials in large quantities direct from the British manufacturer he saves the warehouseman's profits which would amount to 8s a yard on a suit of this description (CD !)x). This on a suit means a saving of 2l)s. ;2) Likewise a saving oil linings and trimmings of As can he effected. (If) a saving on overhead expense can always be obtained by manufacturing oil a large scale, and the so-called hand made .suits can he turned out for an overhead expense ol ‘Js (>il per suit while a tailor, turning out ten nr twelve suits a week, would do well if he could reduce the overhead expense to 62 per suit. He maintains that the saving ot the laclory, making on a large scale, is equal to about AT. 8s (id per suit. It is -a question whether any one is deceived by the terms used by either party. After all the ordinary prudent man dresses, within his means anil if the “bespoke” suit goes up in price be turns to the factory suit and is quite content. Owing to the rise in wool suits must cost more whether made by a tailor or in the factory, and it will depend upon tho purchasing power ot Hie people whether it is a tailor made suit -or a factory made suit which finds favour.