WELLINGTON NEWS

Hokitika Guardian, 12 May 1926, Page 4

WELLINGTON NEWS

THE EFFECT’S OF THE STRIKE,

(Special to “ Guardian.”)

WELLINGTON, May 10.

Both in Auckland and in Dunedin views have been expressed by bankers regarding the effects on New Zealand of the strike in Britain, and these views have been more or less pessimistic. The Wellington bankers, and here is may be said that the headquarters of all the banks operating in New Zealand are located in Wellington, cannot justify any pessimism. One executive officer remarked, “We are pursuing the even tenor of our way and see no occasion for doing otherwise.” , It is not disputed that the strike will have some effect on New Zealand, but it is very likely to be very mild. There will be considerable inconveniences and some losses through delay and the tightening up of finance and postponements. Even if there had been no strike finance promised to be difficult, and the strike will make it a shade more difficult. A New Zealand loan of C 0,000.000 was duo to be placed oft the London market this month, and the flotation must necessarily be postponed, maybe for three or four weeks. But that will not embarrass the Governmtnt for the Prime Minister has the surplus of over a million sterling to fall back upon in case of any urgency. AYith respect to our produce: The wool sales have been postponed indefinitely, but this means very little to New Zealand. There were about 37,000 bales of New Zealand wool to be offered. The sales had been going for nearly a wteb before it was necessary to postpone them, but above all verv little of the wool belongs to the growers. Most of the season’s clips was sold locally, so that there is not likely to be much, if any loss to wool growers. Butter and_ cheese are being distributed in cooperation with the authorities, and the prices fixed are not unreasonable. Only a limited quantity can lie distributed, and the tendency will be for supplies to accumulate. That effects Denmark also and the danger is that when the strike terminates the Danes will rush their accumulations ori the market and break prices for the purpose of clearing stocks. Tt may he assumed that frozen meat is also being distributed, and meat will also accumulate, but as the chilled beef supplies will have deteriorated through being held up. frozen meat will get a chance. These are our principal primary products and they should not be much affected bv the liold-up. Our imports too, will be held up. and that will cause loss on seasonal goods should they fail to come to hand in reasonable time. There is also the danger that when the strike ends merchandise will be rushed to the docks and shipped as last as the steamers can be got away. That will lead to a glut of merchandise and to the sacrifice of goods to clear stocks. There will certainly be some losses j arising out of the strike, but they are not likely to fie very marked. DAIRY PRODUCE CONTROL.

Ft is understood that Mr AY. A. Veitch, M.P. for Wanganui, will sponsor a Bill in respect to dairy control during the coming session. In the meanwhile he lias written to the Prime Minister protesting against the Control Board’s suggested .system of voting on a tonnage basis for the election of members of the Board. Tie writes: “ Tlie idea of grading the value of each producer’s vote according to the amount of butter and cheese exported b,v bis factory is such a grossly unfair departure from the democratic principle of one man one vote, that it

would only lead to further discussion ■throughout the dairying industry. The Dairy Control Board proposes to bring compulsion into force on Ist August and to seize and market the whole of the Dominion’s output' of butter and cheese, whether a producer wants it or not. In doing so the Board is treading on dangerous ground, legally and morally, and incidentally, it raises a very line point in constitutional law, but that is not the matter under discussion, The point I wish to bring out. is that on a matter wlii< h so vitally concerns the welfare of the individual producer, there is only one sound and democratic principle of electing the Control Board, and that is one the basis of one producer one vote.” Parliament is certain to meet on the 24th June, if not sooner, and the matter must be decided promptly, at all events well before Ist August. It is the belief of a good any that the system of one producer one vote will win. and it is also very probable that absolute control will be deferred, if not abandoned. There is yet no information available as to Milieu an application' for an injunction is to be made to the Supreme Court.