WELLINGTON NEWS

Hokitika Guardian, 26 October 1928, Page 3

WELLINGTON NEWS

AMUSING OR IRRITATING

[Special To The Guahdian.]

WELLINGTON, Oct. 23

The plea or suggestion (the term varies according to the temperament of the user) that Britain should give her Dominions markets, occasionally finds trenchant criticism in the British press. The “Investors’ Review” has never been friendly to Australia or New Zealand, and it takes the opportunity of the publication of trade figures of the United Kingdom to speak gibingly of what New Zealand, takes in the way of goods from the United Kingdom. This journal writes: “In view of the facts as to British trade it is either vastly amusing or irritating (according to one’s mood at the moment) to- come across an article headed Dominions’ Plea, Give us Markets. At a conference arranged by the British National Union we find Sir Thomas McKenzie, a former Prime Minister of New Zealand, saying that the Empire could supply all the foodstuffs that at present come from foreign countries. New Zealand seemed to be particularly prolific of this kind of intelligence, fior jwe have happy recollections of the great ‘Dick’ Seel don’s of hundreds of millions of golden sovereigns flowing out of the country to pay for foreign imports.” Sir Thomas further said he was glad that the Empire Marketing Board and other organisations were now translating political platitudes into some form of activity. ;Mr J. H. Thomas had recently appealed to the overseas dominions to take some of our surplus population. He had been well answered by a representative of South Australia who bad replied, “Give us your markets and we will take your surplus population.” “And this is the kind of fustian that passes for true fMue Toerinli-m.” observes the “Investors’ Review.” “Will Sir Thomas and his Australian friend kindly cost their eyes over our imports from New Zealand and her imports of British oroduee? Then we should recommend them to fio back to dpme’s school:’' The “Review” puMbhes the trade returns for the United Kingdom for the six months ended June 30. In that period New Zealand purchased £8.892.000 of goods from the United Kingdom, and sold to it £32,208,000 worth. In the same period Australia bought £25.307.000 from, and sold to the United Kingdom over £42.000,000 worth. PLENTY OF MONEY.

Tjhere Appears to be a conflict of opinion as to whether there is or is not a plethora of money in the Dominion. Tho«e who assert that there is not .an abundance of capital have failed to appreciate what has been repealed bv the bank returns. The factors of importance in these are the deposits and the- advances, and the returns for the past quarter revealed the fact that the deposits exceeded the advances by oyer seven, millions. That money was held by the banks-at their disposal although a good deal of it was on fixed deposit for. varying, periods. This mopey 'must bp ' use<? either by the act pal owners or by the thanks who are the temporary ownersThe banks are flush of funds and ape in a stronger position, than at the • time period of the past t +wo yearsand can meet every reasonable and legitimate demand for accomp’odation. Furthermore, the tendency will be for money to increase, as. the. milk and wool cheques and the cheques for freeing stock come in The surprising thing is that thpre should fie any unemployment just tinw, curl the reason for it appears to be .that wages are inflated by the cast iron regulations of the Arbitration Court, and consequently labpqr is too dear to buy. Those who would otherwise employ labour are unable to do so because of the cost. The personnel of the Commission appointed by the Government to inquire into this serious matter does not inspire confidence. It is a very complicated matter and trained economists should have been selected to make the inquiry. However, ito return to the subject of the volume of credit there is no doubt that it exists and there is equally 'no doubt that work must be found for this idle surplus credit either by the banks or by others. Tf suitable investments cannot be found within the Dominion then money will migrate, to where it cqn find employmen. Credit recognises no barriers, no nationality, no creed; it will •jhmehow find its way tp the place where it can be employed. At the moment there are Ample funds in New Zealand for all commercial purposes.