WELLINGTON NEWS

Hokitika Guardian, 26 September 1925, Page 1

WELLINGTON NEWS

THE PRIMARY' I'RODUCEK. (Special t-c “CJuardicji”.) WELLINGTON, Sept. 2:1. The primary producers of New Zealand and Australia are again being viet imi.'.od l>v the Labour Party, for file revolt of the British seamen against the agreement entered into hy their Union with the Ornish Shipowners is against the interests of the entire torninuiiit.v. and hills with marked severity on the primary producers. Here we are at the beginning of the export season, when shipping should he regularly reaching the Dominion and as regular!v leaving with cargoes. The delay caused by the strike must upset all calculations. Produce must accumulate In the stores and when the pressure comes, as it will in December and ■ lanunrv. there will inevitably he a shortage of shipping. Butler and cheese which should he going forward presently to catch the Christmas trade must miss the market. "Who can attempt to forecast the markets under present conditions. At the outset the market is hound to he hare, and prices will be at famine level, and when the strike is over and there is a rush to get the vessels away the market will be glutted and prices will tumble. There is no doubt hut that the British seamen have been made the dupes of Communists and of men who are handling Moscow money. II is not all the men who are aiding and abetting the strikers. who are out in the open. On the contrary Labour, especially in N.Z. is lying low because the strike is the worst thing that could have happened for La hour's chances in Ihe coming general election. The electors have got to ask themselves seriously this verv important finest ion of whei lthey are prepared to hand over the destinies of N.Z. to Holland, Fraser. Semple. Savage. Sullivan and party? |. it the wish of the primary producers that they should lie governed by tills class of politician i The experience of the Australian Suites is not verv encouraging. The British seamen's strike is just a translation ini action of Mr Hickey’s formula. “To Hell with agreements." ]t is surely unthinkable that, the Labour Party can climb into power in New Zealand by using as a ladder the sulferings of the Community and principally the sulferings and losses of the primary producers, A prominent authority in lorecasting the political prospects pointed out that the people were tired of the Reform Party who have been in power much too long. They do not trust the Labour Party who have mu the slightest chance of security a majority. The probability is that the Nationals will gain at the expense of Reform and Labour and in the new House Urn piii 1 ies w ill !a ha til evenly divided an I the result will lie a coalition and reiutrmiu :ion of the two-; arty system of (bneriiuioiii. THL DEMAND KOI! MONEY.

The (iuverntiK'iil is in need of from CI.UOO.OHO to t'-’i.ll!;(),l 11 to to clean up the applications tor loans that have accumulated in the Advances OHice and people arc wondering where the money i-, to come from. The .Minister of Finance has states'! that, he thought there would be no difficulty in obtaining the money, hut. that can he taken with the proverbial grain of salt. If the money is raised in London it will not do New Zealand's credit anv good tin tin las! loan issued in Mac lor !_'7.0(lll. t'UH was a iailuro. am! it r- obvion . that we cannot hope to borrow now under A per eeni. which was the rate paid by the ('otilliloiiw call !i of Australia. 'Li bonow in London at A per coot will mean practically something over •V, per cent., and surely the GovernIncut would not have the audacity I" I'e-leild the motley In lionie builders and others at It per cent or even A per cent and make the general body u! taxpayers find the balance. Furthermore a loan limited in London will cause expansion in our imports and disturbance in our i radc for the money raised in London cannot be transferred to New Zealand in gold bin must come out in goods mainly. li is hardly likely that me (hivermuent will borrow in London. The alternative is to borrow in Now Zealand. A local loan would require to be very attractive if il is to prove success!''til. An at I raci ion would he "free of income tax" which would appeal to the large companies and firms, lint tax free is an anathema to those w|;o know nothing about the matter. It is doubtful whether ihe Government could raise n A per cent loan except, at a discount. The A per cent i’.D. bonds of the Post Oftiee maturing in 1027 are quoted at L'DR 10s, which gives an idea of what investors expect. No clotthi the Government will consult with hankers and linanciers before venturing on ihe local money market.