WELLINGTON NEWS

Hokitika Guardian, 21 August 1925, Page 4

WELLINGTON NEWS

THE DECLINE OF MINING. (Special to “Guardian”.) WELLINGTON, August 10. Mining, whether it Le lor gold or other metals or for coal is declining in New /.calami as well as in Australia, and this is somewhat of a pity. Even Cum Digging is jietering out. One can understand the decline in coal mining. I'he development of hydro-electricity lor sopplving power to industries on land, and oil fuel for the propulsion ~f marine craft is causing a contraction in the consumption of coal, and ' .j,j s contraction roust continue to mauilest itself liecanse <oal cannot compete with oil fuel or electric power. The eos-Ls of producing coal tend rather to increase than decrease, and any oti'ort t , reduce, costs is met hy the. labour unions in a hostile spirit. Hut unless osls arc reduced, not necessarily by reduction of wages, hut certainly by an increased output, ai present cost, coal mining must suffer. Bui. i) mining for coal as an industry i- languishing, the j his it ion i>. cousderaMy vvoicO io m'pect to gold. Very little gold is being obtained in N.Z.. and it may be contended that it is due to less of the metal being left, or in other words that the gold is petering out. 'lbis is no doubt true to a certain extent, hut it is not the whole truth. It is quite a question whether the lossikers lor the metal have tested all likely localities, and further it. is a question whether by better means id saving the metal no ■mild not obtain more .satisfactory results. Fossiking for gold is not now an attractive adventure. Title old brand of miner has vanished, and the i.ew men would undertake fossiking it provided with all the conveniences ot modern time* down to a- motor ear. so that, they lould make week-end trips. The ,-pirit of adventure is lacking now. We have reached the ago of the dole ami the pension hy right, and everything supplied by the state free ot .•osi. It is doubtful whether a Government subsidy would do any good, for the spirit of the old-time miner has gone. Gum digging in (he north is slackening, partly because the huge gum has nearly till keen gathered in, and what is left now is known as chip gum or lino gum. This is ntixi . with stones, twigs, charcoal and such foreign matter, and the problems to he solved is how to separate the gum trolll the dirt. It is stated that research chemists have been working on tlm problem and that there is every prospect, of a satisfactory solution. Kauri gum is largely used lor the muuufacuire of varnish, and also in the manufacture of linoleums, but it is stated that, in respect to varnish a substitute has been found which some say gives satisfaction, while ethers declare that practical tests have proved it. a. lailure. However, faith in the Kauri Gum industry is still very strong, and even Wellington capitalists are interested. It would he very dillicult to get Wellington interested in gold mining. (TJE.U’ MONEY. The news from London in respect to money rates is very cheering, more especially as the lowering of the Hank of England discount rate lias not effected the dollar exchange. It is now the general opinion that the hank rale will be reduced to -1",, which is |il,civ to he the minimum for some lime, and as one authority states this should he In Ipful to I fade all the world oter. The-r cunt cl'sunt with Pounce and the intricacies of the money market, doubt whether the iiillneiiee of easier monetary tonditinns in Loudon will be felt- in N.Z. Ordinarily, the cheapening of money in London has 1 eon mecpted hy the 'Dominions as tin imitation to borrow', but London is against the issue of Dominion loans for the present, and if we cannot raise money in Loudon, we must do so ill N.Z. or there must follow a contraction in public works. The position is parti; iilarly difficult, for local bodies who an- finding il very difficult to place of debentures at par. decent Stock Exchange quotati ms show that the best offers for country Borough A) per cents is lik’d l(!s. Ihe rate of interest that local bodies may offer is pegged hy uidcr-iii-Cotiii; il. and the local bodies find that they cannot borrow at the rates fixed by the Government. There is also a .good deal of talk in business circles over the pm] usnl of the Government to inquire into the working of Agricultural Banks in other countries. A hanker maintains that the Government is in possession of all the information on the subject, but,, for and against, and the Commission, he it ever so diligent in its inquiries cannot obtain anything new or fresh, it is recognised the main object of the. Government is to evade the issue and stall off the advocates of Agricultural Banks till the election is over. The sending of the ('..•mmissiim abroad is ;m easy method of evasion, although an expensive one for the ratepayers. From vital can he gathered hankers ami others have no objection to Agricultural flanks hut object to the Government being tailed upon to guarantee such institutions, boss, in the opinion of some is inevitable, because the security for the loans that an Agricultural Bank may lit aka must depend largely upon the character and ability and integrity of the borrowing client. Agricultural Banks are a great .success in countries possessing a genuine peasantry. that is w hen general ion has succeeded generation in tilling the same land. We have not that population in N.Z. Rural loans are far from satisfactory to bankers to-day. CL. —aKAagaaP