The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 24th, 1929. FINANCIAL ISSUES.

Hokitika Guardian, 24 June 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 24th, 1929. FINANCIAL ISSUES.

The annual report of the Bank of New Zealand again reveals a very satisfactory financial return, but a study of the Chairman’s review of the position is not as comforting as it usually has been. The Bank’s Dominion business is not as profitable as it might be, and for results as achieved, the volume of overseas business is especially noted. There is plenty of money in the Bank hut a difficulty in finding ‘•first class investments” has turned the trend of financial trade from industries and developments to stock

investments. The remarks of the c nairmnn cover the general situation very closely, and in looking for a remedy to effect the necessary change and so secure more legitmate financial trading and development, there is an examination into matters mainly political. The close alliance between politics and trading is thus brought home ,and indicate clearly how financial, issues are involving in the state of the political market as much as the industrial or labour market. Lack of settlement and production are reported as primal causes, and the Chairman proceeds to discuss possible finances along political lines, The fullest uti-

lisiition of nvnilablc funds in New Zealand would lie, of course tbe host tiling chat could happen. Suggestions to that end are offered. These proposals come at a very opportune time, for the Government through the Minister of Lands, is bent on precisely the same task, and the ideas offered are sure to he closely studied. Another suggestion is to adjust cufctoms duties with trie idea of making Great Britain and the Dependencies—the It in pi re in fact —one united whole under absolute free trade. 'lbis is too much to look ■for in otic great step, hut in any case must he studied critically as to other possibilities, for international trading must not he hastily sacrificed. The possibilities of retaliation from other countries might undo much that was attempted by freetrade within the Empire, for after all the juxtaposition of other countries to the various parts of the Empire is a factor in the local prosperity or what what contributes to that local condition To affairs, and a state of checkmate should not he brought about. The most that can be hoped for in these complicated questions of tariff reform is a slow adjustment, with a careful scrutiny as to effect, for after all trading is on a delicate poise, and customers must not he unduly alarmed, any more than they should he foolishly threatened. Coming back to the financial matter of the speech, while there is the complaint that the supply of money is greater than the demand, it is not likely that conditions will continue. Indeed the speech indicates that some millions of the amount required Tor loan conversions falling due could be provided in the Dominion. At such a moment with money so plentiful it would be in the general interests to raise loans locally to a reasonable limit, but not so as to exhaust possible credit for ordinary trading and enterprise. It can be accepted as most probable that Sir Joseph Ward has a good measure of the financial position within and without the Dominion, and will he disposed to act quite sensibly in the interests of all concerned. New Zealand seems to he in a very happy position indeed in being able to meet immediate local loan requirements, and at a reasonable rate of interest compared with the ruling prices elsewhere. An elastic finance'is good for the country as a whole, and the strong position of the Hank of New Zealand is a first class asset governing the general credit of the country. The management of that institution lias retrieved a difficult position in years gone by, and sound and Tar-seeing management continues to keep the Bank at a very high level of prosperity which is altogether good for the common weal.