WELLINGTON NOTES.

Hokitika Guardian, 3 December 1924, Page 1

WELLINGTON NOTES.

EXCHANGE PROBLEMS. (Special to “Guardian”.) W ELLINGTON, December i. 11“' cost ol' negotiating a bill on Lonhaving advanced, the banks arc receiving a good deal of advice i l Ikhv tin; situation can l.c mot and tiic exchange rates rcducoil. liusinc.s.s men are now beginning to take a nt>>r.■ atcive intciest in lie* subject, and some have talked in jmldie. Tims the prc.si- • tiMlt ..I tlie To Aid Advanoomcnt Association (a liody composed of Cuba Strife!

shopkeepers.! expressed the opinion that the exchange problem was hugely due to I Jic fiscal policy which the people of this country had supported so long, lie thought the neglect of natural pro dm lion in lavour of bolstering up industries unsuitable to the Dominion and a burden to [he community should come to an end. He contended that protection had not only increased the prices oi commodities and lessened consumption, lint had also restricted the natural flow ol trade, ami as a consocpieuee the export ol our products was penalised by the cxi-hango rates. .Many individuals were I.lamina the hanks lor the* present position, hut this in his opinion was unjust, for after all the making and exchange of credits Was ;:ovci ned hy the' exchange of goods lor

goods, according; to their relative value alia volume. He suggested the rodlictic.ll or SUsp Usioll ol the Customs duties. which would result in the increased impmtation of the woods the country needs and prove of substantial hctiofil lo i lie primary producers. There are very lew uho could agree villi the president of Hie To Arc. Advancement Association ami the protectionist would regard Ids projiosal as rank herc'sy, all llu. same the C ustoiiis tarilf is a burden mi Hie community, and is providing llu* means lor retiming income tax. Last year’s redtlct ion in income tax was more than made up by the increase in ('ustnms revenue.

KECK DESS BORROWING. The president Ilf the Te Aro AdvaUcvmriii Association had also something tutei eMing to say with respect to Government hon 'em ing. “It appears to me,” remarked llie president, “that the Government of New Zealand, as wi ll as the eommuuily as a whole, is all lictiul with a mania for bnittiwing. The ala'-rity displayed in piling up huge debts without though of the liabilitv incurred, ami llu’ nexcr eliding lin n It'ti lisino thcrelrom reveals a por-

traiture of the people oi New Zealand tlmt is not creditable. High finance is appar.'ntlv measured hy the sumss in obtaining loans and ill postponing the evil days of payment. Tin* Gnvcni--1111-111 obi ains sums running into millions on llu- assumption that one gelicration may hind another generation and as a cniisi'i|Uonce the unborn, who have mi say ill the matter, are selected victims to pay the piper. It is upon i.his painful assumption, ami on the p|,.a for borrowing money lor Ihe purpose of making public improvements that I lie Cove; time'll pursues ils reck|,.„s course ~l action. ’lbis is like I hrinvimr waic-r on a dm k s hac-k. ’l'hcre was a lime in I lie distant pa*l n hen lor tin- Government to hc.rr.iw a million wa* an event, and in l-'-'I ls'.l-j the laic .r.ihn I’allancc advocated in the Bmlgei of that year the “ lap,.ring oil' of burrowing.” lie* suggest - iif (hat the count ly Humid endeavour lo 1... self-reliant. Soon aflcrwaid the borrowiim; rale teas ii'crea-ed to three 11,: 111 •»11 p* I* ;i 1 • it 11111 .•'**! i»*»w il » >M' 1.. ;i !•« hi I f t'.ni'i. im m » 'lli.- ( i..\»im* , nl Imiitowiml L'i'.JM Mi.Ui Ml in l.oii. li*m sin««* April last and. a further Cl. I I’d.ooo from the Dank of .\* w Zealand, besides wind it has m able to obtain by tin* .ale 111 stocks and bonds over tile Treasure runnier and the sale ol Dost ( 'Hue Savings Certilirales. Next year l he Cov.wnmriii will need an..liter Li.tHHI.liin) and will on upon the l.omloii luaik»*: in April. Of course it will be claimed that the sinking land will l.rin;; ahull! a rrdmtinii. lull paying olf a hold half a million and burrowing seven millions does nol make' llu* out look lieall li v for the laxpayers of the

ANoTIIKR HKI.IKh' MEASI’IiK. M, T. \l. Will,ml luts iii'noi its! im i, |,. :t Ini' inii'i inn tin- I'xcliii n-e siluaIi• >ii IToiu :i Smliwv 1 • ; iii■ r whose stt--

-est inn, direelly :i |,|>l it :i 1 1 1< ■t ■ > Austrnliii 1111,1 scimi'ly so 111 Now Zealand, is llial ilio A tisl in lia n (Invorn lui'iil should 1.. L'A.iHiii.ndii por nit,nth "I ,!('lit in 1., a,|,m |nr live in,,in li'. a n,l inomy l.nmuvoil loi-ally. Il is iminio'l out ilia! I.,noli,ti Inn,ls an- now a! a dts-i-ouni of I |ioi- ,->otl.. so il loans u,uo issiioil al L'!"i Ilio ]uoioi-ils i.l oai-li L'PI, Imml wi>, l l l l ropay CUM) in l.oiuloii. His mil. iLoiiioil that ilm soli,'ino is loasjl,|,.. I,ui will lim |,0,,|,10 l ako up Ilio loan . i.l' lito ioi|iiiroil amount P Hut wl l y in mini tin- lai lilts import. Attslrnliau Mocks issiioil in I.iil I, lon iinil soil 1 limn m Sydney ami Mollmuiuo. Arliit|.;,,;o liiisiimss is not an liiu-oiniiioii allair, ami it lias already keen ilotto in Ait-l ralia. Tlio sal'osl ami stiio.-l. way of i-n.lmy tin- oxrlian-e pruhloiu is to , ImiitoU ino in l.oiuloii.