WELLINGTON NOTES.

Hokitika Guardian, 1 September 1924, Page 4

WELLINGTON NOTES.

SCAN CITY OF .MORTGAGE MONEY. (Special to "Guardian”.) WELLINGTON, An-. 29. At hist .Mr .Massey lias been obliged tc udmit that the demands on the; Advances to Settlors resources are millions in excess of the supply, and he attributes the scarcity of money for mortgages In local liodic.s absorbing the capital that might possibly have gone into mortgages of f.arni lands. The opinion of financiers and hankers is thr.L the present position is the natural result ot the Government's unfair competition. That is one per cent sinking tmid and raising the lending nut rein to what private lenders regard as hevond the safety mark the Government has been rushed hv borrowers, and these demands cannot possibly be met. Money like water will find its own. level, and if mortgages will net yield a fair return then invesl uln will try other forms of investment. Local bodies debentures at of per cent and (i per cent offer a better return than do the I’ost Ollice .Savings liank to some investors and money is put into these debentures, but not so rapidly as formerly. It is now suggested that the Advances Depe.ri meat should lie authorised to issue short-dated A per cent debentures and so iind money for mortgages. The suggestion emanates from Air F.. A. Hansom, M..1’., who has given notice to f|Uestion the .Minister of Finance on the subject. Ilis object is to offer a gilt-edged investment to small investors; to clieek the out-llow of capital from New Zealand 11ml to provide further funds for the Advances Department. The suggestion looks very nice on paper, but in the opinion of men rpinlilicil to speak m the subject, thu scheme would turn out a frost. First of all the small investor is Hot likely to lo content with A per cent when he can g”t I per cent in the Host Oilice Savings Hank for deposits at call; certainly this is restricted to deposits of .ColU Furthermore the small investor can get If per cent from the Hiihlie Trustee for deposit - tixe I for 27 months and 5 per cent il t!m deposits are fixed for A years. What chance would .A per emit hoods have against these attractive term-!' An for slopping the Might of capital, the alleged exodus of capital i- largely imaginary. A large sum of money is payable to Australia in respect to the balance of trade and it is difficult to provide this; besides the exchange rate of 2 per cent makes voluntary investment of funds in Australia unattractive. The Advances Department will run out of funds presently and borrowers will l.e forced into the open market, and must pay market rates and ccmlorm to the market conditions. The manager of one insurance company in giving evidence before the Taxation Commission stated that Ids company ceased to lend on mortgage because allowing for taxation (ho company would have- in charge' Sf per emit, to secure an adecpuite return, and he did not think the farmers could pay that high rate under the present conditions. THANSFKH OF FAT STOCK.

The Council of the Dunedin (Chamber of Commerce lias given the .Meat Control Hoard a bard nut to crack. The Council suggests that the transfer ol slock It one district to anolier lor Irecv'.ing should lie banned, no the ground that the long railway journey from one part of the country to another lias the result of causing Ins- in weight and also cnii-idcrahlc decline in condition and cpiality. The elleet of this suggestion if carried out would be to restrict the operations of freezing companies to restricted areas; which would mean heavy loss lo the e. nipanies. Furthermore the companies in a certain district could combine and tix prices which the producers would have to accept as they would be unahj * lo i ail their stock to allot leer district. Ilm meat freezing industry bn- herni in existence for about Id years, and fat cattle, si..on and I:uI• have been Hilled to the works in Wcllingion from all over Llie emu!try and the industry has progressed. New Zealand lamb bolds a very high place in the London market because of its ipmliiy. Latterly, or to be more exact, since the war. the c|iialily lias licit been maintained and lar ton much second grade stub' lias been allowed to leave the country. ■The Meat Hoard will not l.e free to consider the matter cm il - merits, but Ire,in ihe point ol view ol its effect on the political ail tuition. The Hoard cannot act independently of the .Minister of Agriculture and the laller must view the matter in its political a-peet. OI’OS.Sr.M SKINS. Opossums seem to thrive in I he Wellington Acclimatisation District ami the lirst sale of -kins secured during Ihe open season wil ne.s-.ed an a-seiiib-lage of ahoiit 0.(111') skins sent in by trappers from all over the district. Tl.erc is now a good demand for furled skins and prices show a distinct; Icmleney lo advance. Itlile and grey opossum skins are milch favoured and bring higher prices I bail the other sorts. In rabbit skins blacks are favoured and buyers often receive private commissions to buy say fill matched skins lo lie later made up into fur coals. One linn has orders now for over "(111 rabbit skins to be bought during the next winter sales in the South.