The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY DECEMBER 14, .1928. THE FIELD OF INVESTMENT.

Hokitika Guardian, 14 December 1928, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY DECEMBER 14, .1928. THE FIELD OF INVESTMENT.

It Wiu-; said by Mr Coates, in the speech in which he wound up the debate on the AddreiS-in-lteply, that thovo is more money in Now Zealand for mve.stinent just now than there was nt any time that he can remember. lie is not likely to have made this statement without having very definite avthority respecting the accumulation of funds. It should cause no surprise, however, to those who make a .study i f

ilie monetary conditions in t-lio D«mi*>it;ii, There liave been various im'icajrftioiis of late, says a Dunedin ] uper, that- there is a plenitude of money \n ( the hands of the financial institutions, i One of them was afforded a rev days ; ago in the decision ol the trustees of | the Auckland Savings Bank to reduce ; their mortgage rate and to reduce also the rate of interest on deposits. A certain nervousness on the part ol m- , vestors is, however, certainly discern--1 ihle. The clearest proof of it is provided in the fact that a very large anioiint of money is lying on fixed j deposit in the banks. 'I he banking returns 'for the September quay ter shewed that the proportion of tree deposits to fixed deposits was lower than it has been at any time for a quarter of a eenLury. The latest ol the useful bulletins prepared by the Department id economies ol" Canterbury College, and issued by the Canterbury Chamber of Commerce, commenting on this eireiim.sf.anee, suggests that the drift towards the 'growth of fixed deposits ‘quay he due mainly to a steadily declining level nf confidence in business prosperls, and, if so, it is sttflicief.tlv marked to occasion concern.” The same authority, examining (he direction in which investments are being made, says: “There is much evidence of an increasing Mow of New Zealand savings into Australian securities, indiealing that lhe.se are' more attractive to investors than openings offering m the Dominion. This means Dial part of our savings, which would normally lie used for expansion and development at home, is being sent overseas because local conditions are (omuaralivelv unattractive.” The favour that is shown for local hodv debentures is also noted in the bulletin of the Canterbury Chamber of Commerce and the conviction is expressed that part: at least of the money thus invested has been employed less productively than i, would have been if it had been devoted to the expansion of ordinary business. “In many respects the diversion of funds into such channels appears.’’ il is suggested, “to represent a misdirection of investment of Dominion funds.” As an avenue for in vestment. land has fallen into neglect. The explanation notoriously consists in the inflation of values of land, and il may lie doubted whether even yet. despite the efforts of the past few years to restore broad acres to their economic value, actual stability has been reached. The conditions, however, that affect the rural industries are distinctly promising. An exceptional production of dairy produce is anticipated this year.; (lie wool sales have so far in the present series yielded satisfactory prices and the extent of the clips that are to be offered is expected to be higher than last year; and (lie meat export season has been a favourable one. These circumstances should certainly increase the attraetivenes of land as a security for investment, while the inevitable effect of'the steady accumulation of money that has been going on must lx 1 an easing of the price of money.

A meeting is convened for this evening relative' to setting up an organise lion to co-operate with the Hokitika Eire Brigade in receiving and entertaining the large contingent ol lircmen from all parts of New Zealand, who will honor these parts with their presence for a week or ten days. The \isit is in eon necti on with the an nual eo nl’e re nee ol tiie l sited Fire Brigades As.soeiaf.on of New Zealand, and will be followed by Lite competitions in which the crack brigadesmeu of the Dominion will compete. It is an occasion of much public interest, and the citizens should be prepared to rise to the occasion and do the town every justice. This iis not the first occasion for such visits. In past years when means of transport were not as convenient a.s in these days, both conferences and competitions have been belli hero, and the community earned quite n reputation for the hospitality and entertainment meted out. It is necessary therefore to maintain that reputation. Some move has been made already regarding available accommodation, and it lias been ascertained (hat the hotels, with the assistance of privSlie homes will lie able to mod requirements. This, of course, is Hie first essential step towards making the visit a smeess. Macing provided the accommodation, the nexl mailer is to set about the adequate entertainment of I,l l e vistors. 11 is in regard to i bis braucli of the gathering here, that local support, is required. Commit 1.0e.s need to be sot up and finance assure I for any programme of eiiLeri.iinmmit which may be mapped oiit. A commencement has been made already to help the Brigade with funds to this end by the pleasing entertainment bold this week for that purpose, but more will be required, as well as some guarantee towards any deficit. No doubt some indication of the financial rosponsibililes of the occasion will be given n(. the public meeting, and then nropnsals can be larmulated to meet I lie requirements.' What will be essential also will be tli(> co-operation ol many ladies and gentlemen on detailed oommi'rlees to assist, the Brigade in entertaining the visitors by carrying out ;i comprehensive programme. II offers a sidcmlid vehicle In adv'Tlbe the district. and should be utilised to the fullest in tliat direction. At the same lime Die town must do its best to uphold with further honors its reputation of the past for splendid hospitality to those visiting the town and disI riel.