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Hokitika Guardian, 24 June 1924, Page 2

ITiK Rank of .New /calami hits hud another remarkably good year. This is a tribute to the close attention of tho management, ami the result is very gratilying all round. The Rank is so much identified with the Dominion nowadays, both directly ami indirectly, that it i-. in essence us ill fact, almost, the Hank of New /calami. It is not such a far cry to the troublesome times of the past, anti short as the span is, the total recovery hits in itself been 1 1 illy remarkable. The course of events shaped themselves very much in keeping with the prosperity of the country, lor since tin* State been me so closely ijentified with the institution, the latter lias i.ever looked hack. Yes the times in the interval, ami particularly of late, have been difficult. Within that period the economic pressure has been considerable, ami the public have been able to learn quite a lot from the pronouncement of the leading hankers of the world, in this country the periodical statements issued by the directory of the Rank of New Zealand have been looked to as both instructive ami illuminating, and the latest lengthy report issued by the Chairman was not -••ns exception. A varietv of subjects with an intimate hearing on the hanking

question, was reviewed in an intimate manner. Tho standpoint of the ban' on • questions of finance enables the subject- to he viewed at very close range. for lie Ims knowledge and information gleaned first hand which does not come the way of the casual observer. For that reason the views expressed and the deductions reached must command a great deal of respect. The lesson of the times, however, varies but little. Tt is for the country aml the people to practice thrift, and avoid extravagance. The days of financial plenty, it is all too plain, were abused, ami the general stringency is t’--> result. The hanks have played their part in curbing the disposition to excess and they must needs continue t do so. Certainly in any respect the Bank of New Zealand does not appear to have failed in its discharge of duty: hence the sound position of the Bank to-dav.

Dkat.i.vo with the question of taxation :ts affecting the locking up of money, a contemporary proceeds to remark that tin one will deny that the disbursement of moneys l>y private owners is more carefully regulated than when it is paid into the Government Treasury. How many Civil Servants tiro there to-day, who. if the Government business was conducted, with the same rare and economy which distinguishes private enterprises would be transferred to other spheres of employment. Mortgage moneys on land are difficult to obtain: capital is being withdrawn from the Dominion which is sorely \ v (\ptod hv the people. There is

no attraction now in lending upon mortgage: the rate of interest has been Pulled down by legislation, and those "ho lend at G per cent., if their operations are on an extensive scale, receive after payment of income tax only •JJ per cent. Is there any wonder that other investments, such as hank shares and tax free securities are sought alter" The owner can realise his capital at any moment, he receives a 1 per cent, better rate, and he feels that as reserves accumulate, his holdings become more valuable. The evil effects of high direct taxation ate everywhere in evidente: the owners of houses add it to their rent, the .shopkeepers increase their costs, the merchants do the same, and whatever the form may be. the incidence must eventually fall upon the consumer. f’rosident C'oolidge emphasises this point very well in liis Presidential messages by tracing the transit of a couple of bullocks from the farm to the time they are delivered as meat in tins to the housewife. He shows, step by step, how taxation all along increases the cost, how the price swollen by the various contributions to revenue, keeps the people, notwithstanding any rate of wage they may receive, poor. There can be no amelioration. In' says, until tne burden is reduced at the sources. 'Wages may elia.se prices, wliieli again respond io meet the increase paid for labour, and thus botili sides gallop round a circular track and get no further. We have said in previous articles, it matters hut little upon whom t.he incidence of direct taxation is placed, it winks hack by all sorts of siuuou.s paths upon the great mass of the people. It seems a pleasing tiling to impose the tax upon a hig man. but be passes it back, and if the amount is unreasonable, although it can be borne for some time, it destroys all incentive and must gradually, but .surely. lower the standard of living to all Lliosc "ho earn their bread by labour, whether in offices. shops or manufactories.