WELLINGTON NEWS

Hokitika Guardian, 30 October 1925, Page 4

WELLINGTON NEWS

EFFECTS OF THE STRIKE

(Special to "GuardifJi”.)

WELLINGTON. October 20

Mr T. Shiiilcr Weston, is President Dj the New Zealand Employers’ Feder•itioii, i> also Dominion Treasurer ol the Reform Party ami although there is mi obvious connection between the iv.o, there is unquestionably some relationship. the speeches of the President are coloured by the wishes of the Treasurer. Allowing for this Mr SliailWeston had some pertinent remarks to make regarding the effects of the sea men’s -strike. After pointing out that the strike would have been more serious hut for the prompt action of the producers and general public, he went on to sav that although that prompt action had prevented a catastrophe this strike has still been a serious calamity to New Zoahlfid. The regularity of shipping aimed at by the Meat and Dairy Produce Control Hoards is now impossible for the season. Itur early lamb trade will he -eriouslv affected—onr local wool sales

vill he sluggish owing to the lack of ■ hipping space—storage charges on all iroduce will he increased, and daily nodtice. owing to delay, will ho thrown ipon the London market at a time ,vhen supplies from tlic Continent in he early northern spring will he in -oinpetition. The shipping strike will mve cost the farmers alone hundreds ,f thousand of pounds, the revenue of ihe Country will he lessened and the normal increase ol savings checked. Mr Weston further contended that if il,e present local Government loan ol t 0,000,000 so urgently required to assist: the small farmer and for workers dwellings is not completely subscribed it will he in the main the result of this strike. This reference to the loan is j ust. a little electioneering moonshine. The loan lias little chance of being a complete success, for the country has not the money tor siteh an investment. Th e loan is being issued in New Zoahmd because the Government is un-

able to go on the Loudon market. Even the probable effects id' the strike re exaggerated. Ihe nool maiket is likely tu he affected, and it would not he right to attribute the drop in wool values, which is bound to occui . to the seamen’s strike. 'I lie prices lor mutton am! lamb are likely to he lower because of the drop in wool, and only vorv slightly because of the disturbance in regular sailings. Meat and dairv produce will fie held in store and the market fed. Storage charges are likely to show an increase and bank

charges also will he greater because

loans will be needed lor a longer period. The effect of the seamen's strike will he bad enough—it could not be otherwise —but nothing is gained by exaggerating the probable oiiccts. SAVINGS OK THE PEOPLE. Last year Mr Shailer Weston predicted that the savings of the people in the then ensuing twelve months would he CLO.OOD.Oni), and claims that the prediction has been fulfilled by the increases shown by the Government Savings Rank deposits, and the local savings hank deposits, in the fixed and free deposits in the hanks, the Public Trustee, the investment societies, and other bodies receiving deposits also ttie growth in the accumulated life insurance funds and other outlets for our savings. This is very debatable. The P.D. Savings Hank returns for the year to September 3!) show that tlie excess of deposits over withdrawals was approximately LTo.OOP, it is the interest allowed that makes the increase. The deposits in the P.O. Savings Rank, the Public Trust Olfiee and other Government, depart meld s would he shown in the Government deposits with flu; Rank of New Zealand. So the same with the funds of life iusurame oliices. investment societies would all appear in the lixed and tree deposits of the six bunks, and the quarterly hanking averages tor the September quarter did not exhibit any such increases as (.'10,000,000. The pa.-t produce year was all extremely good one. and large profits were made. A very big portion was invested in motor vehicles, and a fair amount of money has been sent to Australia for investment. Furthermore the expenditure of borrowed money both by the Government ami the local bodies has given an exaggerated impression of prosperity, and it is this combination ol extensive expenditure of loan money and the high production that have formed the basis of the prosperity that we have enjoyed and the danger that confronts li- is that both these factors uiav ease simultaneously, in which case there is hound to he trouble. It is luirdly to he expected that produce prices generally will he as good as they were ill the lasi season, wool and its allied products cannot -ell at the same good prices whatever may la- the poxlion ol dairy produce, and if London continues to show the same reluctance p, handle foreign loans the loan expenditure m.iist he curtailed.