THE OUTLOOK.

Hokitika Guardian, 17 November 1925, Page 4

THE OUTLOOK.

GOOD YEAR COMING

sir Harold beauchamp’.s VIEWS. AUCKLAND, Nov. 15. Tlie present financial position in New Zealand, and its relation to world conditions, were subjects dealt with by Sir Harold Beauchamp in the course of an interview. The lifting of the embargo on the raising of loans in l-oiidon was also referred to bv Sir Harold, who said the removal of the restrictions would be followed no doubt by numerous applications for money in the world’s centre. It had to bo remembered, however, that England to-day was no longer the big creditor nation that she was in pre-war days, and the amount of the savings of the people did not approximate to what it <1 i< 1 in those earlier times. England had to discharge large claims for domestic liabilities. The payment of tlie dole was all instance. Since its inception, payments. be undertsood. had amounted la £31)0,030,003. or more than the amount of the national debt'prior to the war. Further, if there was a revival of English industrial conditions there would lie a corresponding demand lor money for develomnent purposes, and that would leave less for investment in overseas countries.

“Public bodies in this country,” said •Sir Harold, “will sooner or later have to apply the soft pedal. In recent years they have raised large sums for carrying cut numerous schemes which will be remunerative or otherwise. Ihe raising of suen vast sums by municipal ami public bodies is having a prejudicial effect on the taxpayers who reside in various rating areas, and this is having an effect on land values, i refer particularly to residents in country districts who are called on to contribute rates and payments of interest on moneys borrowed for investment in artificial harbours where, in some cases. Nature never intended such harbours to exist.

LOCAL LOANS. “lu carrying out all necessary public works, especially those contemplated by the Government, I should like to see loans for such work raised locally. For such accommodation we might have to pay a slight increase in the rale of interest, hut this would Ire retained and circulated among our own people, and not. remitted abroad as would happen if we looked to London or elsewhere.” .Monetary conditions in the Dominion added Sir Harold, were on the whole, distinctly easy, and those entitled to legitimate accommodation had practically no diflk-ully in getting what they rci|aired from banks and other lending institutions, in say nothing.of the vast stmts loaned to the farmers and others hv Government advances to

settlers and others. The only people who were insistently clamorous for a State cr agricultural hank were those who were not entitled to accommodation on account of poor security which they were in a posit ion to offer. ADY A NCF.fi TO FA R.M F.R fi.

“1 claim.” he said, “that no o Minify in the world has assisted farmers to such an extent as New Zealand through the State advances and other lending institutions. Think of the millions that have boon found by State avdanees during I!h> last few years, and compare I hem with advances which could he made by an agricultural bank with a capital of a few hundred thousand pounds." TAX-FREE INY KSTMENTS.

financial ca-e was generally reilceled in i i.e daily stock exchange quotations. An examiiialioit of (picintious .showed G at Hr- re were scane!y any shares of a popular company which would yield male than live per cent at ruling price.?, 'licit, no doubt, was largely the reason for the popularity of tax-free del>enl arcs ami inscribed sleek bearing interest at Li per cent. !( wax the return which flic large investor could get from Him form of investment which was nrevcnling him from applying to any great extent tor Iho New Zealand Govcrnmenl loan now on tlie local market. 1 hat loan boro interest at •o.t per cam., and after deduction of the tax, £1 Is lid would only yield L-l As 111 ■ per cent, against a return ol 3-1 los on tax-free bonds, including redempt inn. WOOL AM) MEAT.

"While we cannot look for particularly high prices lor won] this season. may anticipate mnoli letter rates t ’.an ttnj.se which ruled m pre-war (lavs," sail! Sir liarolil. "The market in this connexion will Ite tested hv the we il sale, in Wellington, when approximately hales will he offered. 1 laving regard to the stnpeinlniis losses sustained I ; y the majority of the freezing eoiiipanies through having paid for stoek on the hoof last season, prices “''tally in excess of the l.onden parity values, we may anticipate that these eoiiipanies will operate most eautiousJv in 192n-2l>. A t the same time, 1 have heard of several contracts which have lien made I'm- lamb for delivery in 1926 round about 27s (id." IH’TTEI? AXI) CHKFSK. 'i'he outlook for Imf ter and cheese, pallieularl.v the latter, is most encour»Ki"jr. Several Kiifrlisl, houses have lived contracts lor cheese on a basis of 9',d per lb. i.o.b, a highly reminiei'ativo figure. In a recent cablegram it was pleasing to note that Xew Zealand Imt-

ter lopped Danish by a shilling a cwt. Ho would not la? surprised if the- exports of dairy produce for 1925-1926 approximated something in the vicinity of £20,000,000,

PROSPEROUS NEW YEAR. “On the whole, ” concluded Sir Harold, ”] think people may anticipate a happy and prospeivnis New Year. What pleases me most is the thought that, the Prime Minister, the Hon. .1. G. Coates, will he able to form a strong, able, and progressive Ministry, am! with the assistance of a substantial majority, will be able to legislate fci the bene.it of all classes of the community.”

THE ELECTIONS. Sir Harold said that in common wit!, a great many other people he was extremely gratified at the results of the general election, which meant the return of the Reform Party by such, an overwhelming majority. Nolmdy. he thought, anticipated such a result. No doubt the unexpected happening wir largely due to the sympathy displayed by the Labour Party with, the seamen on strike, and its advocacy of til" usehold policy in New Zealand. There was a huge and increasing number o! freeholders in the towns, cities, suburb;.; and (ounlry, and naturally all of them would vote against tne adoption of such a principle as that contained in the usehold. lie had noticed the growing strengi.li of the agrarian party, and in that respect the country was dflferentli situated from Australia.” CONSERVATIVE NEW ZEALAND.

"For many years past.” continued Sir Harold. “I have expressed the opinion to friends in England that it is only a question of time when Now Zealand will become one of the most conservative countries in the British Empire. In the use of the term “conservative” 1 mean the country’s respect for the rights of nroporty and its inflexible opposition Lit. Communism and Sovietism in every shape and form.”