WELLINGTON NOTES.

Hokitika Guardian, 2 May 1924, Page 1

WELLINGTON NOTES.

COM FLEX DISTRACTION

(Special to “Guardian”.;

WELLINGTON, April 28

The past fortnight has been full of peculiar distractions for the people ol Wellington. Before the Easter holidays the possibility of the railway strike dampened the spirits of hundreds of wotild-he travellers, most of whom were obliged to abandon their trips. When the strike was announced it came as a big surprise for wc were not expecting it when it happened. It would bo hard to say to what extent there was sympathy with the strikers, but the first feeling was one of regret that the children would be denied the pleasure of visiting the warships. The arrival of the latter provided another distraction, and the people are still very much taken up with the men of the .Special Service Squadron. Holiday upon holiday and distraction after distraction has played havoc with business, but it is hoped that this week affairs will right themselves and everyone settle down to business. LOCAL BODIES’ LOANS.

At least three local bodies arc offering debentures for sale in the Wellington market. The Wellington City Council is in need of L'ofi.dOO and is offering 5J per cent debentures to cover the amount. The Tolega Bay Harbour Board is also offering (i per cent debentures fur L'70,000, the Wairnrnpa Power Board is also offering fi per cent, hut the amount is not stated. The Lower Mult Borough Council lias just been granted authority to borrow £30.00(1 at fi per cent, and this, no doubt, will come on file market presently. Then l dues not appear to lie very much hope that these amounts will lie subscribed by the people. First of ail the interest rale i- too low. Large institutions can lend money to better advantage in Australia when* the open market rate is 7 per emit. Australian rates all'ecl New Zealand and there is a tendency here for money In advance. Some priate companies are paying 7. S, and even B per cent.on debentures. DBAFTAGE ON WOOL.

This complex problem is certain to be discussed again tin's year. It is already receiving attention in Australia. The draft age is ail allowance to tile buyer of ill) for every 1121 b purchased, and its origin is unknown, but it is a well-established custom ol the trade and goes right through the industry to the finished cloth. The draflage first came into prominence in December 1022, when Sir.lohn Higgins at a meeting of the shareholders of 8.A.W.8.A pointed out that during the three completed seasons in which the Central Wool Commilee dealt with the wool output ol Australia the gross weight of wool handled was 2.00!M)50.035 |hs, and the dm IT age was equal in i able to an amount of L2!M,!)!!.». T bis statement attracted considerable attention and efforts were immediately made to have the draflage abolished in Australia and the farmers in New Zealand were also anxious to get rid o' tin's tax. The growers insist that when they sell a hundredweight ol wool at auction they want to lie paid for the hundredweight, and not for 1 1 -Jibs minus 111). WOOL BUYERS AND BROKERS. The wool hovers are very firm in their attitude that tin* tiff It age nnt-'-t not lie abolished. They maintain that the dm ft age is taken into consideration when valuing wool and ilmt there is no genuine loss to the grower. Ihe wool buyers in Loudon last year intimated that they would refrain from attending the auctions if the draflage was abolished. Some years ago there was a dispute over this question in Sydney, hut after the sales had been ■suspended for two days, the growers declined to take any further risks and directed that the auctions should proceed. Wind that is offered for sale at auction does not necessarily belong to the grower; fin uncial institutions are generally interested in the siaple, and it. is a question whether I hoy would he prepared to stand hy the growers in a contest of this nature. Wool brokers are naturally interested, and they would he justified in wanting to know io wlnt extent growers would stand behind them if they annomuvd that one of the conditions of sale was to he that wool was to lie sold without tho draflage allowance. Would the growers make sales privately and make the draftage allowance?