WELLINGTON NOTES.

Hokitika Guardian, 8 December 1924, Page 4

WELLINGTON NOTES.

LEGAL TENDER NOTES. (Special to “Guardian”.) ! i WELLINGTON, TV comber 3. 1 Towards the dose of the session Parliament extended the term for which hank notes were to be accepted as legal tender, and some people have criticised this and have suggested that the Dominion should get back to the gold basis as quickly as possible. The suggestion is a good one, but, it is impossible of execution just now. Apart from the I'uitcd States there is not a. country actually working on a gold standard, at all events throughout the British Empire bank notes are legal tender. The export and import of gold is controlled, and consequently there is no gold in circulation. Germany goes on to a gold basis under the Dawes scheme, but Germany will not lie exporting gold. It is thought by many eminent financiers and bankers that Britain presently will be obliged to revert to the gold standard, and London again boron'.? a free gold market. \\ hen Britain gives the leatl in this matter the rest of the Empire will follow and perhaps the rest of the world, and until that comes about it would be foolish of New Zealand to attempt to play a lone hand. If bank notes ceased to be legal tender here there would be a great demand for gold which would be promptly exported, and the sovereigns melted down and sold as bullion the price of which to-day is L'l Its ltd per ounce tine. New Zealand cannot afford to take tip an independent attitude in this respect, it must await the action of the British authorities.

POLITICAL ACTIVITY. Although the general election is about 1“ months oil political parties are already getting busy. Ihe Keiforiti Party which 'suflcrcd in Wellington at the last election is particularly active in forming branches and setting the stage lor the play. Labour has never relaxed in the matter of propaganda and soap-bax orators have been busy at the midday hour talking Labour politics. The Liberals made a little fuss at I’etone and the Lower llutt before the session began, but have been singularly quiet since the session closed. Perhaps the l.ibei.ds are acting wisely in not introducing politics just; now when everybody is thinking ol holiday and ( hristmas. After the holidays there will be a general mustering of the clans, and it is the Reformers who will need to be very active. Prior to the last election the live Wellington seats were represented by four Reformers and one l.alsour member, at the 102- election I.bison r turned the tables on the Reformers and captured two of the seats, and at present Labour has three representatives and the Reformers two, Sir John Luke and Mr R. A. Wright. A good deal will depend upon who are the candidates, but it is pretty certain that Labour will score again because of the large Civil Service vote which is against the Government. Some partisans think that both Sir John Luke and .Mr Wright will be beaten. So far the Liberals have not shown the activity that is expected of them, but there may be reasons for that. .Many people are wondering whether there will be any further developments with respect to tin' new Party that was suggested by a southern newspaper. The member for Timaru was named as the Leader of this new Party, but Mr Rnlleston has not confirmed this in words, although his criticisms of the Government and his political actions generally suggest that he i- restive and is likely to break away. The closeness of tlie election is certain to see some new mushroom newspapers started in many putts of the country. There is the Farmers’ Country Party which is regarded as a joke in Wellington, but which may prove to be a lorniidable political machine hampering tic lie |onio. t . The improved tioam ial conditions on ing to the high prices ot our primary products may possibly hare a large inlluciiee on the political simntion. However, it is to be Imped that political discussions and controversies will be belli over until the holidays have ended. LOCALLY MANUFACTURED. Boosting locally made goods, and so creating a demand lor the products of our secondary industries had often I,ceu suggested, but somehow nothing practical has emanated from these suggestions. It scents that manufacturers would like to see this boosting umlet-j taken, but they do not wish to he wor-j riod with it, much less to he called upon to pay the costs. According to one individual who claims to have given the matter close consideration, the customs tariff is too high and the protection given is enervating. It is having the same elfecL on manufacturers here, as the dole is having on the unemployed in Britain. Maiiulncturois arc sheltering behind the protection :tnr 1 liv tratio agreements in vaiioiis ( trade groups prices are maintained and profits earned and there is no inoon- i live to reduce overhead costs by im- ] proving machinery and increasing output. In some industries tliorc are far too manv lactories am! it is only b.v combination that prices can be maiutlained If the secondary industries

are to thrive they tutist have less protection and more business methods instilled into them. There is, of course, another view of the matter as the manufacturers know and have repeatedly stated. Preference for locally goods can he obtained only by sustained efforts, and the production of commodities that will appeal to the customer.