WELLINGTON NOTES.

Hokitika Guardian, 23 June 1924, Page 1

WELLINGTON NOTES.

RECONSTRUCTING THK. LIBERA

PARTY,

(Special to “Guardian”.)

WELLINGTON, June 20.

Tilo .statement of the “Southland Daily News’’ of the pending reconstruction of the Liberal-Lahoiir Partv under

a new lender has greatly piipied tho curiosity of this city, especially that section which takes an interest in party polities. It has long been recognised that Mi T. M. Wilfonl was hopeless

as, a leader, and yet he has shown many good i|iinlities, and is an astute 'politician lint lie apparently lacks the power to arouse enthusiasm and carry conviction. There is no inspiration in his speeches, indeed one is disappointed with the egotism that seems to pervade them. Staunch Rcl'oi mei s have clang to the hope that Mr W'ilford would he continued as the leader of the

Liberal-Labour I’arty and Mr Holland as the leader of the Extreme Labour Party, for Milford and Holland are looked upon as the best advocates for a continuance of the Massey Government. It lias 'boon known here for some time that Southland was taking an active part in reorganising or reconstructin'; the Liberal Parly, but there was no idea that Air AVilford was to he displaced as leader and Sir Joseph AVnrd refused the chalice to resume control of the Party. The paper quoted says, “the force to he loosened in New Zealand in the course of a few weeks will, we hope, operate under the direction of a man who has demonstrated his sincerity and ability to rule in the most convincing manner, and it is probable that lie will capture the popular imagination at the first assault.” Who i.s this gi'er.t leader? 'is the question asked by everyone, and the guesses cover men of all* grades of competence and incompetence. Those who profess to have inside knowledge point to Mr AY. D. limit as tho prospective leader and he certainly would he acceptable to the majority of the Liberals and command the confidence of the public. He has shown outstanding tiliilitv in many of lii.s public efforts, hut above all he is blessed with sanity and a level lieadedness that is somewhat rare just now. Others again maintain that the new leader forecasted by the southern paper is Air ,1. Hamm M.P.. who is an Invercargill man. FINANCING THK WOOL CLIP. In Australia there is some concern lest the volume of hanking credit, will prove insufficient- to provide the necessary credit for moving the wool clip. Tlio trouble does not arise from any actual shortage of funds, hut the funds are not where they are wanted. The hanks hold large credits in London, and are unable, under present conditions, to transfer them to the Commonwealth. consequently there is a shortage of funds in Australia, where tile credit is needed and a plethoia of funds in London u here the credit is not urgently wanted. In Sydney a fair quantity of wool is being offered this week, requiring £7511,1)00 to £1.000.(10(1. and a fortnight hence at least £1 ,250,tllllt will In* needed in Brisbane. If buyers are unable to secure the necessary linaiieial neioiimiodal ion competition will he’ slack, and prices will go lower for there are always weak holders anxious to sell out. at whatever may he the current.- prices. Of o’.unso strenuous efforts are being made to remedy the position, but if is not quite n« simple as it would appear. D. is difficult to sav what is !ike!\ lo arise in New Zealand, hut local wool brokers are optimistic. pointing out that it will he hilly live months before the new clip can come on the market and by then matters will have adjusted themselves. TAXATION PROPOSALS.

A good deal of interest attaches to the ie|)ori of the Taxation Commission which recently sent in its report to the Chivei'iiinent. II is believed that the report is iiimniirums, hut no details of the report have leaked old. Interest, of course, centres on the i|iiestion as to whether the Commission favours remodelling the present system of company taxation, which is not. merely crossly unfair, hut is also distinctly liarmi'iil to the country. lls iinfairuess lies in the fact that many shareholders w ho otherwise would not he called upon to pay income tax. or at most would pay a very small amount, are taxed, the maximum rate, and to earn this tax and pay dividends, the companies’ services are made expensive to the sttlblie. Tt has practically crippled the companies doing business in mortgages. The undivided profits of a- company, should undoubtedly be taxed hut tlie whole of the net profits of a company, which is merely an aggregation of individuals. should not he taxed. The abandonment of the present company tax. mid the substitution of a moderate Hat- rale upon the undivided profits would result in charges of all kinds being reduced. It is essential to the welfare of the primary producers that charges should he reduced, for the prodmeis are faced w ith i In' certainty that the prices of their products will recede. Falling prices of produce, and stationary cists of production and of marketing charges will spell ruin.