The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, AUGUST 19th, 1924.

Hokitika Guardian, 19 August 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, AUGUST 19th, 1924.

the: reparations settlement Apropos the settlement of the reparations question with Germany, and the ultimate effect of I lie changed economic position of Ul9 world, tho M er "

enntile Gazelle thus icvicws the general outlook. 'I lie paper says: It the Dawes report is adopted and Germany unreservedly accepts the conditions eon, tniued therein, (as she now promises), the (ionium people will have to give up all thought of war and work hard ho many long years belore they are live. The burden Germany must assume will sit heavily upon the nation. Reparation payments to t!:e extent of sixty millions sterling will have to he paid m 122(1, im reusing 11)011 a giailuating s ale until they reach one himdre. and thirty-live millions in 1!>34. 1 meet these payments Germany must develop and expand her industrial aitivitv to such an extent that, alter ' ..rovidmg for the maintenance o! her people and for payment of her im|oits and raw material, she will have a sin). lns jrtmi which to pay tho annual instalment. Foreign international indebtedness cannot he paid by remitting hank notes, hut by obtaining lulls drawn against goods which have lioeii expected. Nearly all nations Have protested their trade l>y Customs harriers, and it those are not suflicieut to stop a German invasion the duties w ill he’ increased. I lie* l nitcal States will certainly give 110 facilities for goods made ill Germany coining into , competition with the domestic trade • nor will any other country accepting them view with ei|uauimity the destruction of their own industries by impo: tations from Hamburg. E ranee will not lower her Customs tariff so as to receive goods from the Germans which she can make herself, it is possible that South America will oiler a Indd for absorption of German goods, as the I nked States, with its high labour costs, will find it difficult to maintain the position she l now holds there as supplier. England has lately iu-en suec-c-ssful ill competing with \ the Republic for this market, and lias broken into the market pietty badly. Our country's payments oil account of the debt owing to New A ork have chiclly been made at the expense of the American iiiiinulac-tiner, and if Gernmiiv seriously attempts to push her goods into South America, she c .-intn 11 siiceee.i i.uless h.v underselling us. „ Another great handicap under which the Germans must suffer is the impnvciishnienl of the Home market. ITior In the war the German people were pu>s| emus and tin- domestic, market was exceedingly valuable. It was this which kept- all the- spindles turn ,| ing; the overplus was sent outside. All Germans put their savings into hanks, from which under the hysteria of pa- -. triotism they weie withdrawn and i-ciii- -• vetted into Government bonds. AA’e 1 all Know what happened: as their paper became due it was paid off by 1 inarits and the hnlcli-r received a penny in the |ounel. Cneinployment •’ has keen life during the last lew r months, and although a few profiteers halve made immense fortunes, the great hulk of the people's protits are as empty as Mother Hubbard's cuphoard. and they are nimble t<> pun-lias.-i- except from hand to mouth. If Germany ean send out goods worth a liiil--1 lion stei ling, it does not follow that tl.e proceeds can he handed over to the Reparations Committee. The Government will arrange to pay the manufacturers ca~h against shipping documents and will transfer those, with the hills drawn against them, to whoever collects on behalf of thq Reparations Committee; hut the- rash must he )aid to the* Germ.in shipper and 1 taxation will lie imposed for this purpose. If this is heavy it will react ii| 011 prices, wages must he forced up. and the profit, tho only part really available for payment of debt will continually shrink until it ceases to exist He hope that some) stability of the currency may emerge out of the- acceptance of the Dawes report, hut ii the Germans can pay and eventually extinguish their liabilities, her trado:s and linaiuiers will lie entitled to rank as superhuman. Their military men appropriated this term to themselves during the war with dire results, as wo now know. AVe lliink that if ever a nation had a task more than Herculean in its nature to see through, the Germans have* that beto:e them to-day. that tho legislative bouncil siiuuln i>e » lie* lllitll«.|| WJiS I Vj« C iIM , JJi <l4 ilt'iliiV h Iti.uiu UiM'iiN'iuu . ..1 J;». „AI ti.A* U.4G-.WH A. *».■» 011 seriutl>j V • / ll.f iLft.-V, t.-v* i (UUIHIJ4 \ory miOii wm-.i im* iviw.iu. u not tne alKilitlon, 01 tne L pper House in its present lorm will be hrougul .i.scu, .\s a revis.ng v i.ai:c>.ec to have outlived its usefulness. On tne score ot economy it comic cel tunny he done without. it must lie costing ■setel’al thousands o. pounus a..mi.my to eon duet the Legislative Council, and many will Ik- disposed to cjucsti m me value given for tnis expenditure. 1)1 late tne Legislative Ci.iincil is being used jKilitieaily as a reward tor party services, and to such an extent, mat the over representation 01 ltelorm in the present House is very striking. I his pronounced favoritism indicates that the value of the business side of the Chamber is living ignored. A change in the constitution of the Upper House is well overdue, as the late experience of appointment* has fully demonstrated. If there is to he a revising chamber, the members xhciijd U* selected laci’ause <if special qualifications. olid

tho predominant “party” feeling should not ho allowed to carry the weight it does. If party is to rule in the Upper House, then as a secondary chamber it lic-c nines a mere machine, doing the holiest of those who created it. A rubber stamp would he as useful ill that ease. Certainly the time is ripening for a close review of tilevalue of tlio Legislative Council as parted the machinery of democratic government.

Tut: details of the- Consolidated Estimates show that the New Zealand State Forests account is still on the upward tendency—as previously predicted. For 1923- the Department 1 ontrivc-d to spend no less than £90,302 net. This iuhstantial expenditure is Iteing increased materially for the present year. 1924- jumping (according to the Estimates) to £130.032. Of this pro-iiouu'-ecl increase of about 45 per cent, in tln> a mih:i! expenditure, salaries etc-., rise from £55.(18-1 last year to £84.882 this year, while maintenance jumps from £42.038 to £54.009. The number of persons employed by the Department decreases from 100 to 90. hut there is not any saving in the salary fetal. There is an item under capital charges for AVestland of £1.750 for “a nursery for producing trues for the ex-p'-rimcntal planting on the AVest Coast anil for other State Departments, local bodies and settlers." General afforestation is t-i take the largest slice of the- exm-neliture. totalling £50.1191. all of which is a c harge against capital account. The hulk of this expenditure, however, is ear-marked for such fuvoured places ; ,s llanmer. Rotorua. Tn-‘ panui. I’rac-tieal work in H-e wa\ -cl | rc-nffori-statioii is not. very e-iiiispirtious in tin- year's estimates. In forest research work £15.50 was spent in Westland last year out of a t ote of £l7lO fir forest experimental stations. A further vote of £1.500 for the samepurpose is being taken this year. It will he sec-ii big figures arc- involved ill the- maintenance of this Department, and it is a growing cost. (lie- amount of practical work in return is a matter of opinion, hut ii is clear n very large amount, of public money is being absorbed, and at the present rate of increase' in expenditure the country will he looking for some better returns for the- outlay than at present presents itself to the critical eye.