WELLINGTON NEWS

Hokitika Guardian, 23 July 1925, Page 4

WELLINGTON NEWS

LOCAL BODIES’ 'LOANS. i i (Special to “Guardian”.) WELLINGTON, July 20. Tl, was announced in the House by the .Minister for Finance that the Government had cut oil' loans to local bodies, as a matter of fact the Government 'has not sufficient money in the Advances Department to meet the demands of borrowers on mortgage. The Government has “hanged, barred and bolted” the loan office doors on the local bodies, and the incident is likely 1.,, have far-reaching, and very implea-

ant effects. There is scarcely a local body in the country that has not some j “progressive" 1 scheme on hand involving the expenditure of loan money. | ami there are very few such bodies i that have not been granted borrowing 1 io M er- by the ratepayers who appear I pisi as anxious to see borrowed money ■apiandered, as the local bodies are to squander it. Now. what is to happen with Bandura's box securely Listenedj Where and how are the loans to he i raised? The Christchurch City Council wanted £50.000 for housing—a very patriotic proposition but the request 1 for a loan was turned down by the Government, and the sign on the Ad- ( ranees Department i- “No money available for Imal bodies.” It may be said ■!:a,t these can raise tlie money in Iho open market, but that is easier said than done. I here are several local authorities who have been trying for weeks, if not for months, past to raise monev at o’ 1 : 1 ,,, and they arc .still Irving. ft will be a very difficult matter 1.0 raise money in X.X. just now because such debentures or bonds are not popular with investors because of the special tax and also because most of such debentures cannot he realised upon except at a discount. b.ven the small investor who showed keen interest in such securities is now not eager to take them up. Sonic ol the bigger local bodies with large sums to raise, may venture upon the London market, but they are certain to meet with a chi 11 v reception, at all events they arc not likely to get loan money there at under <;■■.. if they gel it at all. Obi iotisl v local body linaitce is going to provide serious difficulties, and it is also obvious that many if not all the pro jot fed works and undertakings must I c held up indefinitely or abandoned entirely. The loan expenditure of the Government and the loan expenditure of the lot itl bodies have been important facialis in the prosperity that the country has enjoyed (luring the past two or three years. If there is to bo curtailment of this loan expenditure to any extent it must cause a violent disturbance in the labour market. Indeed in Christchurch where they are always quick to squeal, there is said to be considerable unemployment and acute distress. Fortunately we are approaching the busy time ol the year and there is a probability that there will In* work for all. But what about next winter. ' THF. WOOI, MARKET. The London wool sales will close on Thursday and from present appearances the clo.-ing prices will u.ot equal those obtained at the opening of the soi'ie^. Merino wools of the best description registered an advance of s",’> because of a demand from the Continent. but this demand appears to have been filled and values have shown a weakening tendency, best descriiitious of merino declined 5"... Greasy cross-bred- arc a shade lower than at the opening. Ihe trend of file market rather -uppoits the views ol tin Bradford spinners and manufacturers who have expressed a eiaivietiun that wool has not yet reached its low watei mark, and they were said to be shaping their policy on this assumption, and were therefore unwilling to speculat ' It requires no great power ol divination. in view of all the known facts ton prophecy that weal will be appro ciably lower in llie current twelve month.-. lu-i nh:n tbai will mean in N.Z. woo; growers and to the people of N.X. is bard to say. The great quantity of wool exported from the Dominion during tile 12 months ended ■ I line was 50(5.1id0 hales. At the local salt s 521 ,(is'l l aics were offered and tie; quautiilv sold was .151,158 lades and the; average I £2'.) per bale which may be taken ns i cprpscnting the whole of the wool exported last season. Thus the last v.col clip was worth approximately £1 (;.(i :0.(:0(). The iii iv wool clip ought t i show some slight increase in quantity, but very slight, been use in the past year old wool was shipped, and it will sprprise some people tn learn that there are one or two grow•rs who arc still holding three soa- -; iTs clips. But whatever the incrcaso it will not lie sufficient to make up for the decline in value which may lie placed at about .TV.,. This means that the new clip will realise about £5.500.00.! Iv— than the clip of 1021-25. But this is .an esl iiniiLc lia-ed oil presentconditions. Anything may happen in the weal trade, however, and forecasts mist always be'made with reservations. If there is a revival of trade in the G.S. and the Americans come into the market their competition would have a stimulating elfeet on the market. Then again the vogue < f 'art.iticieil silk may taper nli’. mure especially if in the winter months the ladies lind that, silk stockings do not. provide the warmth necessary for comfort. Wool will always he in demand and will always .sell at a priie which may be very low sometime-; and very high at other limes.