WELLINGTON NEWS

Hokitika Guardian, 11 September 1926, Page 1

WELLINGTON NEWS

TAXES AND BENEFITS. (Special to " Guardian.”) i s WELLINGTON, September 8. v, Hi its closing hours Parliament has n been busy with various money prod bloins. The tampering of the tariff in e the alleged interests of motor body builders and the timber trade has caus- .- ed a lot of annoyance, for everyone can 1 see the real reason for the additional i taxation is to maintain the volume of - the Customs revenue. Imports are de- , dining and for seven months of this t year there is a shrinkage of close upon e a million sterling with every indication s that the decline will be progressive. With the shrinkage in the imports il must necessarily result a contraction in the Customs revenue, and the new • taxes will help to make good any defie cieney. At most the body builders in I tlie Dominion may get a few more - bodies to build, but their capacity in s tliis direction is limited. They could not meet tlie demands of tlie importers who are at present landing about II 18.000 motor vehicles in a year. Most 1 of the vehicles will be imported with bodies complete. They must be. if the motor trade is to continue, and the increased taxation will mean increased revenue. The larger proportion of the 1 vehicles imported are of American manufacture, and on these the duty L lias been increased 10 per cent, besides the increased duty on the bodies. ’ And it is doubtful whether tlie higher duties on foreign ears will benefit British makers, who have not shown any aptitude or keenness for the New Zeaj land trade. Most authorities agree that the new motor taxes will increase the Customs revenue by about £IOO.OOO. Tlie timber duty is also worthless as a measure of protection, it merely means that Now Zealand distributors of foreign timbers affected by tbe tariff will be forced to yield up a portion of their very large profits. This timber tax also will mean ail increase in Customs revenue. Tims the Govi eminent will bo able to meet the dole to men with large families which Parliament decided upon as a bit of 1 humanitarian legislation. Tinkering 1 with the tariff at odd times is much to 1 be deplored, and it is not an increase in Customs duties that is wanted, but ■ a decrease. The burden falls heaviest on the primary producers who have to pay “through tlie nose” for what they require in the house and on the farm, while their own products must be sold in an open market and against the most severe oomnetition. THE WOOL MARKET. Tlie eyes of the entire wool trade are now turned towards London where the fifth series of sales begins on Tuesday next. Tlie outlook appears to be extremely good for practically all classes of wool. Tbe sales at Sydney last week showed that fine wools were in keen demand, and although no fancy prices were offered the staple moved off freely under ail active demand. At the July sales in London crossbred wools were somewhat depressed and the. market opened at 5 per cent drop, but recovered this towards the close. Since then crossbreds have apparently revived more attention for 40’s tops, which were quoted at 20-J-d per lb on August sth last, were last week quoted at 21d. a rise of Id per 11). These facts warrant the belief that an improvement in values will ho registered at the London sales next week. The upward movement indicates the strength of the wool position notwithstanding j tlie difficulties that beset it. Not once - during tbe past few months lias the market been free of some disturbing influence. The general strike, the prolonged coal crisis, the disconcerting fluctuation in tlie exchange value of French and Belgian francs, and the Italian lira have all tended to hamper the wool market, but it lias withstood those troubles, and one wonders what would happen to prices, if the whole textile world found its immediate future secure. There is of course scant hope of such a pleasing change. The trade, however, lias regained confidence. and the troubles that beset it are tenipornrv only, and presently there will be a Tull measure of activity. In the T'nited States there should lie some improvement in business shortly ns tlie American Woollen Company lias announced a reduction of If) per cent on its prices fur light-weight worsteds. This company is the largest textile concern in the United States, and operates about 55 mills. Not a little of the present sound position of wool is duo to the sanity of growers who have shown a commendable readiness to meet the market, and have thus b('l-if(sfet(i restore confidence.