WELLINGTON NOTES.

Hokitika Guardian, 26 May 1924, Page 1

WELLINGTON NOTES.

rOLITICA L BANK I! lIPTCY. (Special to “Guardian”.) WELLINGTON, May 23. In political circles in Wellington there appears to he prevalent a feeling of expectancy, that something unusual is about to happen, but no one is able to define that something. If a dissolution is suggested then numerous plausible reasons si re forthcoming to show that cannot happen, and in most cases the pith of the argument is the extraordinarily large remuneration allowed to Members of Parliament. The contending question is invariably “do you suppose that ?»lembers of Parliament will risk losing £450 for any political principle?” and there is no satisfactory rejoinder to that. However, the general opinion is that if there is no dissolution, there will certainly he several hot debates, and the administrative acts of the Minister for Agriculture will furnish most of the matter. The Minister of Agriculture ret-i-iuly announced that there was no intention of removing the duty on imported oats, and the iiimouncement. it is said, l.nlieon received with satisfaction by tin growers and holders of oats. The sequel to tin’s is dear oatmeal. Merchants in Wellington have received advicefront oatmeal and oat food m.-iiiolnr-turers of a rise in the price amounting to £3 per to:, ui port of shipment oil oatmeal and similar oat breakfast funds. The price of oatmeal in January last was £l7 P's at South Island ports; early in February the price was advance'l to £•_’! 10*; it i oso to £25 in the middle of February, and to-day it is £9B net. a rise of £lO 10s Oil per ton nr over GO per cent. Ol i-ourse porridge is going to cost us n great deal more tliis- winter, and it will lake a great deal of explanation to convince the workers of Wellington that the Minister is maintaining the duty from patriotic motives, and that tin- high price is warranted. It is stupid atlmiuistrutive acts ol this kind, that are positively indefensible, that tire driving the people to turn to the Labour Bitriy for relief. MORE BANKING CAPITAL.

The announcement made by the Naiion;il Bank of New Zealand of a further issue of shares at it premium really deserves more attention than the announcement is likely to get Horn the general public while there exists the excitement of picking the men for l lnAll Black Rugby Team. The National 8.-i nk is as much a New Zealand concern as the Bank of New Zealand, and i.s represented all over the Dominion. The fact that the h.-.nk needs more capital is evidence of expanding business. as a matter of fact tho trade and i-omnit ti e of New Zealand has grown -o tremendously in recent years, that substantial increases in capital have been found necessary, and practically all th'- hanks operating in the Dominion have add'-;!, largely to their capita! and reserve. In May It'll New Zealand salted butter Wits worth IP'S in the I.ottdoii market, and tho quantity exported wa- comparatively small, now the price is Hi2s ami the quantity has practically doubled in the ten years, do finance the dairy produce shipments alone large funds are mailed. .1 he National Bank has increased its capital on .-ix successive occasions beginning in isK)<j. In that year oO.iXiO shares were issued at a premium oi 25s per .share, tu 1018 there was an i.-suo ut 100,000 shares at a premium of 255. Tu 191!) there was again an issue of 190,CKVi shares at £3 premium. In 1922 there was a similar issue. Init the premium was £2, anil now another 100.001) shares at a premium of £2 are being issued. Since tilt l close of the war the capital has been increased three times, and the total increase of shareholder-,' funds represented by the three issues is fi.•’,•>'>.ooo. In l'.iOti the capital and reserve fund of the ban!; stood at £AoO,OOO, with the now issue of share it will amount to £2,900.00'). an increase "I TOO per cent. ■WEAK CHEESE MARKET.

Both butter and cheese are again on the downward trend, hut the position of cheese is rather serious and calls fur special consideration. Many ol the factories that- consign their cheese to agents in London for sale have been, very naturally, disappointed with the ruling prices and the agents have been insirwtoil t<> rojiMjxiiinouis in stole, and that is to keep oil'the market and not to sell. This course had

been adopted in the ' 11 values would improve: and it was the right course to pursue had supplies been moderate. bill it is in connection "ill) supplies that things have gone wrong, ft is stated that there tire fully 10.99! tons of New Zealand cheese in London stores and supplies arc pouring in, with prosnecls ol heavy shipmciu* item Europe and Camilla next month. .Some of the New Zealand cheese hits been in store for a considerable time, and it is deteriorating. The men* fact that there is this quantity of cheese in -lore will prevent any upward movement in values lor retailers will naturally be afraid to lay in slocks, not knowing what moment the stored cheese will he released. In the meanwhile storage charges tire piling up. and interest on advances against shipments are also mounting up. If there is no possibility ol values rising what i.s to he gained l>v holding stocks in store. It is time the consigning factories took counsel with the Dairy Department with the view of taking some action that will relieve the situation, ft may he the wisest thing to accept current prices and cut the losses. However it is a matter for serious consideration.