The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 28, 1929. CREDIT AND CONDUCT.

Hokitika Guardian, 28 February 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 28, 1929. CREDIT AND CONDUCT.

In a recent issue of the “Bulletin,” mat versatile periodical which is still the most representative organ of Australian public opinion, provides its readers with an amusing but instruct--ive contrast between New Zealand and the Commonwealth and their financial sides. It points out'that New Zealand raised its last loan in London at £4 ,j. oil per cent, while the Federal Government, following us in the marvel, nail to pay Lb 2s 3d per cent. I ho “Bulletin” observes that “if Austram s. credit had been as good as Maorilalids, and if it had out the amount saved into real sinking fund, the accumulation should have been sufficient to pay off half tin* loan when it tell due.’’ So that the difference between the financial reputations of two countries on ilie London money market is represented by a very substantial sum. if the comparison is carried a little further back, me results obtained are much the same. The average interest paid on the New Zealand public ddbt in 1926 was £4 7s 5d per cent. For the Australian State debts the average rate of interest in that year was £4 17s, and for the Federal debt £5 3s lid per cent. But if we ham hack to tile beginning of the century the .'position if found to be quite dilferent. In 1931 Australia was paying only £3 12s 7d per cent on its debt, while New Zealand paid £3 J4s 2d per cent. The rise in rates of interest lias been largely due to the war, but the increase in the rate paid by Australia, being out of all proportion to tile increase in the case of New Zealand, must be attributed to other causes. The “Bulletin” frankly ascribes it to the misfortune of the Comnn nwcalth in “acquiring a bad name and carefully cultivating a dissipated reputation.” It must not be understood from all this that the “Bulletin” has a very high opinion of New Zealand’s finance. For one thing, the total debt of the Dominion in 1927 averaged about £l7l per head of population, while Australia’s average about £ll9. lint the credit of New Zealand is firm and Australia’s is on the down-grade: and the “Bulletin’s” view of the situation is that the difference is due almost entirely to the had repute into which Australia has fallen through the eccentricities.and extravagances of the industrial extremists voluble and menacing. Thus “the ■ uncouth and disorderly pranks and the strange noises permitted to flic .Bolshe\lik*l, strike-mongers, preachers of revolution” cost Australia about £7,CMX),OCO a year on interest account alone ; and the “Bulletin’s verdict is that “the price is a high one to pay for the reputation of keeping a disorderly house.” No doubt there is a great deal of force in this argument, and the evidence by which it is supported. New Zealand has had a Liberal-Labour Government in office, but its annals show nothing parallel to the record of the Lang Ministry in New South W ales wjhen dominate*.! by the Beds, or the Byan-Theodore Ministry in Queensland when repudiating the State’s contracts with its tenants. There can lie no question that these things have told severely against Australia on the money market, and the story is not finished vet. This week Mr Jock Garden denouncing the Arbitration Court’s decision in the timber case, told tile strikers “if this is to be law then to Hell with the law.” This fran-' tic incitement to vioent revolution summarises aptly, the whole situation “Organised Labour in Australia.” as the Christchurch “Press” says, “thus resolved upon a. policy of militancy. If it cannot find one excuse for striking it will find another. Any excuse will do.” And the “lawless and faithless men” who are heading the revolt of the workers over there “aim at aehieving their ends ibv violence and in- i timidation.” The domination of tin- i Australian Labour movement by such < leaders is a sufficient reason for I lie .< bad financial reputation from which I

tlio Commonwealth now suffers, and if the industrial and political organisations here ever came to be directed and controlled by the same spirit we would speedily see similar consequences produced in New Zealand as well.