WELLINGTON NOTES.

Hokitika Guardian, 17 October 1924, Page 1

WELLINGTON NOTES.

MONEY FOR INVESTMENT. (Special to “Guardian”.) WELLINGTON, October 10. -Mr T. Sliailer Weston, the president of the Employers’ Federation, in his address at the annual meeting expressed the opinion that the savings of the people annually approximates to £'10,000,000, and this opinion was arrived after consultation with the Government statistician. The amount seems large hut it includes life insurance premiums, superannuation and those other prudent gestures of prudent people. When such matters arc provided for and a reserve maintained for contingencies iL is doubtful whether half the amount suggested hy -Mr Weston would he available for investment and the development of the country’s resources. However, assuming that the amount saved is as large as represented it is obvious that the demands on these savings arc at the moment excessive. The local bodies have been persistent borrowers in Hie local market and at this moment the Wellington City Council is offering for sale over the counter of per cent debentures with varying currencies lip to 25 years. The amount required is not specified from which it may he assumed that the City Council will accept all the money that may be offered, which will not be all that it wants. Since the first of the current tnoiii.lt the New Zealand Government has come on the market and is offering 5J per cent, debentures at par repayable July I. 1930. 'l'llis is not all for the Public Trustee is offering 5 per cent on deposits fixed for five years, and the building societies are also accepting deposits at . 5 per cent. Most of the above are new competitors in Ihe local money markets, at all events the Government is a new competitor, and this competition must disturb the distribution of the savings of the people. The Banks, including the Post Office Savings Bank, must suffer from these inroads, and it is probable too that the slock exchanges are feeling the effects. It is somewhat noticeable that recorded sales ol stocks and shares which represent the business done between brokers have contracted. It may he that investors are looking for a higher return that is to ho obtained from stocks and shares at current prices, or it may be that t lie competition referred to above lias diverted funds into other channels. II the hanks are affected hy this supposed movement they must raise their rates for deposits, and if the stock exchange is affected needy sellers will he obliged to lower their quotations to effect sales.

WILL MONEY BECOME DEARER. Some little concern is felt amongst the business people in respect to the (•bailees of money becoming dearer. The advent of the Government as a borrower on the local market at. per cent is a disturbing factor. II makes the prohabiliiy of local bodies obtaining money at At per cent rather pi(iblematieal. As a matter ol fuel it is believed that several local bodies arc finding is very difficult to borrow at the rates fixed hy the Government, ami it is alleged that some of these borrowers have approached the Government for permission to oficr debentures at a discount while retaining the nominal rate of iuferest. II the arc sold at a ilisi oiiuf, Iho buyer gets a’heller icluin. and it is tliought that if the local Imdies wove granted such a privilege they would more readily obtain the money they require which is tin doubt true; but the Government is also a borrower and it is not to the interest of the Government to facilitate borrowing by local bodies. The difficulties of Hie situation will compel the local bodies to curtail their demands for loans and this would do no harm. SYNTHETIC PETROLEUM.

A motorist who is interested in running costs and motor spirit, as all motorists are, is curious to know whether tin; New Zealand Board of Trade is making any inquiiies into the newprocess of ninimfaciuriug artificial petroleum, brief details of which were e.-diled from Paris under date October 5. According to this message Professor Mailkes, during experiments at Hue, near I’aiis, showed that a stationary motor ran perfectly with synthetic petroleum made from a basis oi water gas. The only raw material required is lignite dial which is valueless. A waste product from peat and sawdust may also he uiili-ed. It is estimated that it will he possible to maiitil'aolme the fuel at 75 centimes a litre, compared with I franc 75 centimes, which is the cost of a litre of motor spirit. The plant required is simple, merely a boiler capable of being heated to 100 degrees. The point ol interest for New Zealand is the fact that we have immense areas o’ lignite coal now lying waste and, if, by the new process, ibis could be converted into a profitable commercial product the gain to the country would he very great, Toluol only would we have a new industry, but tin- motor ear itself would he brought within the range of thousands inoro. It is not so much the first cost of a motor vehicle that deters so many people from owning a ear, but running costs of which fuel forms the principal item. TIIK. BANK OK NKW ZEALAND There is not- doubt hut. that, some members of Parliament regard this hank as a State institution and amenable to political influence. M.r F. l.nngstnnc, member for AYnimarino does not agree with the policy of the directors with respect to the payment to the ordinary shareholders of a dividend of 1.11-3 per cent since the Government lias agreed to pay only 5J per cent on Cl .T 25.000 of that capital. The directors will no doubt stick to the policy that lias been successful so far and pay dividends according to the profits earned. They have no power to issue more shares as there are none to be issued.