WELLINGTON NEWS

Hokitika Guardian, 20 August 1929, Page 2

WELLINGTON NEWS

THE WOOL POSITION.

(Special Gorrespondent.)

*' 'WELLINGTON, August 16. The causes which' have led up to the * present unsatisfactory state of the

wool market are varied, and no two opinions agree as to the main cause. > There is ho doubt that the manufacture of artificial fibre is increasing rapidly, and a writer in the “Yorkshire Post” is of the.; opinion that

Australia’s pride .in’ her Superiority in the wool markets is in serious danger ■\ elf being undermined by the rapid advance in the manufacture of artificial silk. It is a .disturbing fact for Australia that the world production of artificial silk alone is now reputed to be equal to the clean scoured content of the whole of thg American clip.. In recording ijiie'afrahgeme'nfs'made’ . by'those engaged in the Bradford wool market to hold a conference in connection with the “ Use More Wool ” campaign suggested by the Australian graziers the Bradford correspondent of the “'Times Trade and Engineering Supplement” wrote that it is; likely thait the recent (fall of 25 per cent In thp 1 value ; of wool will be explained By other factors than the use ; of; artificial ' fibjres. He ‘pointed-out that owing tp the' replenishment of wool stocks in’ thb various>countries since the war,-a severe readjustment of wool prices was inevitable* a t -Mbi y>\. .' ■ < Members/hf the’wool textile industry consider that*'they have paid Australia too high prices for wool since the year 1923, and that they have* lcjst millions on; the prices paid to. growers. The. slump was postponed till last season owing to, a misconception ; of the supplies available in the pteyious .- year, and the bulk of the wool ;'had'; been bought before the trade-, situation , was realised. Even though there was, a' 25 per cent reduction last porters jiiff Thus, ; grtimers Hayje the true vvqlue' of fashion, 1 •educed exppnditnfe together with/the are >thte ness in- the 1 ~iurers,>/ trade' a cheap and r'abundapt ; wool is requmedV>apd^^^ ; hat the bulk '.of' pr ’our or five years l haye; gone ;to thp ; growers. A, AA, ; To lowef,fhb-.cogtp. !clf^jjroduptiop'-.tlri? > capital npd premises have been'Written down drastically as well as the value of "tdcksi It is now for the growers to follow, the example 'of the spinners' and] _ manufacturers and ,to write. down the valuev of ; their estates and .to; expenses in other ways. ] Tn;thlg way the present prices of ' wbol, oreven a 'ower basis would prove profitable. There is no doubt , that the high prices ‘hr commodities that have ruled during the past few years caused an inflation n -land values as well as fin . wages, ntcVj and we have now tp face deflation which at all times is, problem. • • "V'/'.' •' '•* . VALUE OF WHITE FLOUR'

The* Medical •Research ’Council, in London recently issued a report which throws new light on’ the energy-pro-ducing , value of foods. 1 ‘ Pouiid for pound , (says the report) there eati. be io 'doubt that white flour' is a djettbr source of energy than brown, inwhich some .of the starch is replaced by cell membranes, inorganic salts, soluble pentosans and proteins ffom the'brans.' these cell* membranes are of a very ; ndigestible type and compare unfavourably with those of green vegetables.; . r fhey enclose the proteins and make them?,indigestible too, so that 3D or 40 clear rthat ft flour containing these indigestible proteins, cell membranes and oeritosqnS; is not of equal calorific .value to oneiwhich has them removed.” The report continuing has some very; strong thingsyto say about the .forcing* of brown bread on children, and points out that the experiments which on some counts have pointed in favour, of 1 brown bread, have been performed on rats, guinea pigs, etc. and that the effect of such a diet on humans, particularly females and children, has not. yet been fully studied. Caution ifinthe consumption of whole ■meal bread is urged pending sufficient number of experiments from which accurate conclusions can be drawn. In advocating -the' wholemeal bread for general use; whether in times of need or .; plenty, it should be remembered that .not only men but also women and children are concerned. Children are very intolerant of high cellulose' diets, and for some brown bread is far too irritating, even if given with the idea of relieving constipation. Appetite is such fin important factor in all digestive considerations that no one who dislikes a food 'of improved value should be forced to eat if it can be avoided.

SUPERFLOUS BANKERS

WELLINGTON, August 17

Tins country appears to be flooded with amateur bankers and the less they know of the principles and technique of banking the higher they rate themselves. Every member of Parliament belonging to the Socialist Party rates himself as a competent hanker and eminent financier, and the most courageous of the lot and apparently the one that knows the least about

banking is the blatant member for Waimarino, Mr F. Langstone, who i introduced into, the House a Bill with the./title of the “ Bank of. New Zealand Amendment Bill”. This semi- , state institution seems to be detested by the Socialists'and only because it is a successful institution. They wm- 1 like to wreck it or grab it and label it a State bank. The member for Waimarino said that he had two objects in view in presenting the'Bill. First he believed that there was jno more urgent or important question confronting the people than that of- banking. He was convinced jthat if a Select Committee went into the whole question, and brought down “ something of a tangible "nature,” a big'step would bo taken towards the solution of the unemployment.' More ignorance of banking and economics could not be packed into fewer words.

The Committee is to fish for “ something tangible,”/ and that somethin'; will cure unemployment. His second reason was to throw' the light of public opinion on the Bank of New Zealand and its ■ activities. This- institution is ’ always in the; limelight. It is our biggest bank and a'credit to the .country, besides being the country’s best asset, because ot- its soundness and solidity.. The Bank of New Zealand' ranks high in the estimation of the world’s leading bankers whatever the small-minded member for Waimarino may think. . Mr Langstone raked up past history regarding' which he was rather hazy. It was on the evening of June 29, 1894,‘/that the; Bank of New Zealand Guarantee Bill was introduced by the Seddon Government, and it was passed by Parliament at one sitting. It ivns in the small hours of the morning of June 30th that the country breathed freely.. The Act authorised the Bank to issue' debentures to the amount of £2,000,009 guaranteed by the State ; Had the Government not done so the country would have suffered as it never suffered before and even the Government would "been, greatly embar- • rassed and its' impaired'.. . -The' old Bank had, advanced money ■ Indiscriminately' j apd .. accumulated .a. •4n^^it^^.sai^ i ':;OTpthe:'.time'}a; ; ceme-' jda^'(lepaHpcl : i'fitifn'; Well-tried consequences, A|^i'si.: to, coniena vpliarfc. .'■fhei act/iQn.'i'of help 'the' shareholders.':; As ,‘i; matter ;,qf ; jQssep’ .''■^’sp^s’fpniiaiv^mptint'- cijiietl." up. TIPs meant//absolute,Truin' to' many. people' ,fhp ; held for'--inppine;. iyertised ■. that/he WQuld; 'give,: away ; \- i ipertain v y ; shar.es to y the first ;,parspn.';yvhp> called /upon •, him on; a cer•tain day and . jie is’ belieyed to have done So, as lie wished to rid-himself of the caljaiiahilfty. (• . '';v •/ llie head.office of the Bank was re-, moved. to Wellington, Government nominees. were appointed directors and the. reconstructed bank resumed .business, adhering strictly to sound banking principles]' Then as now there : were many trained and sound men on the-staff, and these were the men who were responsible for rehabilitating the Bank. The Government wisely appointed level-headed business men to the Board and refrained from interfering, with them. It was some time before -the Bank; was. able to pay a modest .5 p,er cent dividend. The management/oif.the Zealand, and for 'that matter'all . the; banks trading the Dominion will' compare favourably; ; 'with • the management of the ; banks- iff. other- countries iof efficiency.

Ihe State is, .doing verywell .out of the , Bank of, New Zealand, and is being handsomely, recompensed for the assistance rendered in 1924. The Bank is'perhaps the (largest payer of incometax, and" it'is contended by the Socialists member’ for . Waimarino that the Bank is specially privileged in this respect because like the other banks it is taxed on'the average of’its assets and liabilities. Very feiv, if any of us, would • tolerate being taxed for our liabilities or debts, but that is the rough way the banks are treated. . Mr Langstone’s Bill has as much chance of being passed by Parliament as it has'of sailing to the moon, and perhaps if the truth were known the Bill has been introduced as a means of advertising the member among the thoughtless and; ignorant electors. These attacks. on capital by Socialist members of Parliament are much to be. deprecated, for it is driving capital into the proverbial “ old " stocking,” and leading to unemployment.