WELLINGTON NOTES.

Hokitika Guardian, 1 December 1924, Page 4

WELLINGTON NOTES.

EXCHANGE ADVANCES AGAIN. (Special to “Guardian”.) ! i WELLINGTON, November 28. The Associated Hanks in New Zealand hove stiffened their buying rates of exchange oil London, the increase is Ids per cent on demand drafts and 12s (id per cent on time hills. These new rates came into force oil Friday, November 28. The rate for a demand draft is fixed at oos per cent discount, that is to say a merchant or producer drawing on his London agent for L'loo, can sell his draft to his hank at L'!)7 os. .‘it) days drafts are quoted at 07s lid discount, (it) days at 80s discount, !!() days at 02s, and 120 days at lOds. The rate affects wool buyers as they will now have to pay more for the moiiev tliev have to obtain from their principals. It is as yet too soon to say what will be the effect oil the wool trade. An additional 10 per cent is not disturbing when the account is small, but many additional buyers will, before the season is over, he requirin'' e IOO.000 and more and C'J Ids per cent will mean a pretty heavy tax. However it is useless throwing insults ai< the bankers and accusing: them of exploiting the public for they are usually the victims of circumstalices. The advances now announced were really overdue and should have come into effect some weeks ago. The advance, will brio;; into the open a number of financial quacks all of whom will have spec ial patent remedies. Ihe Mayor of Wellington (.Mr R. A. Wright. M.I’A, advocated in the House the importation of Hank id’ Fii;:land notes as a simple wav out ol the difficulty. I lie Wellin''!on City Council recently borrowed ed- 1 ! I,oob in London, and the .Mayor now lias the opportunity of puttin:' his theory into practice. A bank of Filmland note is merely a promissory note, and there is no shortage of promissory notes in the' Dominion. Hie banks have the power to issue far more notes than the country would really need, but the hanks have to look to other matters. The only way Loudon balances can be transferred to New Zealand is by the transfer of merchandise, that is by the Dominion increasing her imports of British goods, or by importing gold. The real remedy for the present unsatisfactory position is dear money. If money became dearer in London borrowing would he curtailed and that is what is needed at the present- time. It is the borrowing ol the States and local bodies that has created the present situation, and relief must follow if borrowing in London is "really reduced. They may he devclopmcnts as soon as the British Parliament settles down to the work of the session. The British Government has to pay the Coiled States about 100,000000 dollars in the middle of December, and when this is completed there may he some new movement in the money market.

A f.ABOCIJ FINANCIFB. When this country suffers the affliction irf a Labour Government Mr \\ . Nash, National Secretary of the New Zealand Labour Party, will blossom out as Minister of Finance. Mr Nash is endeavouring to create the impression that he is a heaven born financier and liis excursions in print are gettornlly on some financial or commercial topic and needless to say he is at all times look ill" for the opportunity to flop; capital. Mr Nash has just contributed a dissertation on tea to a Wellington newspaper based on the announce, men that the prices of tea were advancin'.'. This Mi Nash contends is tlie inevitable result of the restriction of oiilpnL adopted hv "towers in 1921. 'lie.' facts are that the Bolsheviki Government of Bttssia has impoverished the people of that country and the Bussiaus are unable to buy tea in India and Ceylon as they used to do and th" owners of the lea pardons were faced with the prospect of heavy liens,

.ill It v c in I,'j!fil lln ~ul i•■ 11 I In- i m l;iil nit'ii l unit hcvoinl tilml was pro Lahly iiiti'inl;'i| because of adverse iliiniitic conditions. Since then the ton cn!i!|);inies have ilnne remarkably well iiiii! have paid handsome dividends. .Mr Nash says, ‘‘This is an illustration nl' what has happened, ami is happenin'; throughout the world. In steel, wool, ruhlicr, cotton, meat, tiinher. cement ami other essentials, monopolies have lieen created, and either In restriction of out pul nr by control of marketing, they have lieen ahle In work their will on the enmmniiity. The workers at lioth ends have snllered ; hy nnemployment through restriction, and hy exploitation in prices on consumption.” .Mr Nash lias made one serious omission in his list lor he had failed to include ” l.ahonr.” What is “pi slow” hut restriction, and strikes are absolute cessation of production. \\ hat is job control, stop-work and all other novelty methods of rest riel i"g output? The capitalists are no saints, .neither are the leaders of the workers. Selfishness animates both. Wilt) AVON TIIK \V AI! ?

Mr 11. Brown. a gentleman fit in Detroit, r.S.A.. a good hnsmess nan who has been talking in quite a Mousing and instructing way to the hi siness men in Wellington complained the other day that is was thrown at him in a satirical way that, “ America won the war.” Well this slogan was repeated with such frequency alter the war ended that the Americans began to believe il. Even that eminent writer Zone drey was imbued with the idea that the war was won by the Americans ami a New Plymouth gentleman took him to task on the subject. Some months hack another American from New York was being entertained in a private house in Wellington when somebody jokingly remarked that America won the war. The gentleman ( was equal to the occasion and replied. I " Wa’al America was the last to go J into the war. and the first to net out, I we <;et all the money and we won the war.”