WELLINGTON NOTES.

Hokitika Guardian, 17 December 1924, Page 4

WELLINGTON NOTES.

BORROWING LOCALLY. (Special to “Guardian”.) WELLINGTON, December V>. At the half yearly meeting of shareholders of the hank of New Zealand in dealing with the exchange position, the Acting Chairman pointed out that the country would he more than ten millions better off at the end of the season than at the commencement and that therefore the Government should place its loans locally rather than in London. This would involve a somewhat higher rate of interest than would lie paid in London, hut there would lie the saving in exchange and in cost of iloation and administration, while the interest would remain in the Dominion. The country may he better off to the amount stated, but this money would not be available for investment. A very large proportion will inevitably be spent in motor ears, a certain amount will be retained by the more prudent farmers for farm developments and what may remain alter that may not lie available for investment in Government stocks and bonds, and local bodies’ securities. As a matter of fact this class of investment has no appeal, in any event unless the rate of interest is much larger than tlial hitherto offered, there will bo no response to any appeal. The Metropolitan local bodies are offering ol per cent lor loans and are finding the greatest difficulty in getting the debentures taken up and for the simple reason that those who want such securities buy them in the onen market at a discount. I'urtherniorc the Government has been offering since October Ist, o', per cent debentures at par, and there are no reports of securities being rushed by excited investors. Rorrowiiig in London just now has bad the effect of adding difficulties to the exchange position, and it is time someone seriously urged the curtailment of borrowing on the part of the Government and the local bodies. The latter could certainly lie forced out of the market by further restricting the. rate of interest they may offer. According to the Acting ( hairi,,ai\ tin- exchange position would improve if the borrowing in London were curtailed, or the value of the imports increased, or the value of the exports decreased, which no one wants to see. MARKETING OK WOOL. A London firm of wool brokers lias issued a circular in which it is contended that the London sales were not the “dead letter” some people seem to think, and the very large proportion of the clip sold in the Dominion in recent seasons is immediately contradicted when it is realised that a very large ouantitv is resold in London at a prolit. Oiio Wellington broker in looking through the list of speculator wool ro- | sold in London furnished by the firm in question discovered a line that .is sold at the Wellington sale in November MPJ.'S, and resold in London in September 1112!. It fetched lSpl in Wellington and 22d in London and when the .barges, interest and exchange are deducted the speculator! l profit must have been oxceptionillv small. However speculation in wool will not he stopped by increasing tin consignments to Loudon, lor treic would Still be speculation, and sp -n. Inters would win and lose just as before. The wool sales in Australia and New Zealand have developed bec-nisi: o'-' the increasing number of bn erf 'win. now attend the sales, and 1 < in v buyer means strengthen "g * competition. At the New Zeal: ml

sales representatives from every consuming country are in attendance and this gives I.remit hto the compel i> ion. 1 1 ia obviously some advantage to i .alee lat i eha ses ill tbe local markets, otherwise they would not be doing so season alter season. And tbo growers are evidently satisfied, otherwise they would not lie rushing their wool into the stores to be offered nt Hie local me. lions at an early date. It is net an that Wellington bad a l.<"id catalogue of Ao.lilUt bales lor its l < c ember sale. From November III2A onwards the wool markel was a rising . ne and speculators bad a great opportoniLv, but in spite nl the I net tlml Ibis specula', ion has been going oil, grow cl s prefer marketing their wool locally lo consigning to London. RFSY DAYS FOR BROKERS..

Handling oo.tK)!)-bales in about three weeks causes a tieniendous amount of work, and the Wellington brokers have had an exceptionally busy time. Ihe wool sold at the sale held on November 17 was scarcely out of the way before there was a rush ot wool Irom all points of the compass, and every means of locomotion was used to get t In: mol into store. The wool had to be r< **eived. checked and stacked and eases, weighed. .Many lots had ro be classed and some reclassed, and the preparation ol the catalogues tailed lor a great deal of work. Owing to the large quantity offering inter-lotting was imperative and in most, of the niliees the stalls were working day :ml night to cone with tin* work. In the stores work has been going oil pracj tiddly day and night and also oil Sundays. At the week-end the buyers were at il on Sunday valuing. All this could not lit* avoided, lor the clip must lie marketed and shipped and work I as to go on at high pressure.