WELLINGTON NOTES.

Hokitika Guardian, 19 May 1924, Page 1

WELLINGTON NOTES.

TUB 11LTCJ!■; SURPLUS. (Special to “Guardian”.) WELLINGTON, May Id At la'L we know definitely that the surplus for the financial year ended March ,‘JI. lbiM, is L’l ,812,30(5. There lire quite a number of men in Wellington who study finance very closely, hut who do not po'C in the limelight, or rush into print to air their knowledge. One such pointed out licit about a mouth ago when Mr Massey announced at the Jubilee function of the Wellington Chamber ol Commerce, that the State finances would show a .substantial surplii' lie stated that this happy result was due In ike observance of the strictest economy, which of course was political clap-trap. The student, of finance pointed out that in the year ended March 31, 1020, the surplus was, in round figures. El,.110,0(10, it is now C1,*12,009 or C 197,000 greater. This latter sum represents the savings due to economy. The revenue for the past year showed tin increase of L'.'lSl,ooo, and the contraction in the expenditure was L'! Ill,(100, ami these two items of saving make tin the 1M97,000. Only a very small proportion of the surplus was due to economies, the rest was obtained through the taxes. This shows the absurdity of the claim put forward by the Government that the surplus wtts due to following a policy of economy. In the past two years the Government has taken from Die people CH.117.0f10 more than was really necessary for the ellieient administration of the Government. 'lbis student of linniicc contends that, ii ways and means eotiid be found to stop the Government of the day from this raiding the pockets n! the people there would he no need for anv (.'oninii.—ions on Taxation. Ilium surpluses can he eblained only by over-taxing tile people, and il eoetr.il of the surplus passed out of tho hands of the Government Ihe incentive to over-tax the community would he desi roved. Ml iRTG AG KS AND MORATORIUM. Ow ing to various ( iivttmst,nines. hut mainly bocaii-c ol the vicious system of taxation there is now very lit Lie money available for loan-, cm mortgage. At one time real e-tate was regarded as the best seenritv for loans, hut now it is dillieidi lo obtain any large sum. and tbo-e carry in’g large mortgages and protected bv the Moratorium will have considerable diliienlty in arranging linanee. Those who could advance the money will no! do SO, because it would be impossible to gel .-nob a Tate of interest O' will vi"!d a fair return on tiie capital iiive-led, at all event* it is less t roublesome to 'itch a capitalist la put bis nionev into tiie It tier leips le.x-lrec -toclts am! bonds. The Department will tint lend more than !.'.‘i.oi!il. and not many loan.* of Dial veluni" can lie guaranteed, because ike Government is pledged to help the home builders, m:mv ol whom have been waiting a very < on-idci nblo time for the advances. In any case the Slate has not the fund-, available to meet all (In' demands of borrowers and it is about time some encouragement was given lo private lenders to help in the matter. Many years ago senTiil finance* comi>:mi«*s «ii#t*rnic<] in New Zealand. These concerns obtained money bv way of fixed deposit in j the United Kingdom on a low rat* of i interest and lend tiie money out in New Zealand at a higher rate, the dilforoncc providing the working costs and Die dividends for shareholders. But the Advances to Settlers Ollice drove these concerns out of Now Zealand into the Argentine, and that country is being developed with British capital, and is competing very successfully against New Zealand in British markets.

HANK I? r PTC IKS. The record of hankrtiplrie.s in New Zealand continues to lie disappointing for 1 1n- numher of insolvencies remains high:’ Tlio record for April shows that 00 bankruptcies were registered, this comparing with I!) in April 1020, 1 1? in April 1022. mid 17 in April 102!. An increase of 1 I or nearly 25 per cent over March i~ not p!<«:i-srnt to conlcinplntc. Once again farmers to)) the list with 15 bankruptcies or just ‘Jo per relit of tho totnl for Inst month. An outstanding feature of Inst month's bankruptcies was the number of butchers wlio (ik'd their s( hcdules. Last month eight butchers wiml liankrnpt and one has to go hark lo October la»l to lind butchers in the hankrnpt rccards. In the month of Octohor throe hoteliers tiled. In the four months ended April AO, there aero ‘JIM bankruptcies in Xew Zealand as compared with JJ7 in the corresnonding lour mouths of last year, and 100 in the four months of lf'J'J. li seems very prohahle that the current year’s record will eipml that of 102 A, when there were (10(1 bankruptcies, or 1022 when there were (Nil hankruplcies. Kanners. unfurl ttnately. have si the past two years ceiitrihuted the gicM O't numher of hnukruplei'. s.- in the first four, months of this year out cl 20! bankruptcies farmers accounted l ent. or iitsi over 25 per cent, from January 1. 1022 to April AO, 1021. a period of two years and four mou'hs, there wen 1 no fewer than 12.1 Onttl.molcies ot farmers.