WELLINGTON NEWS

Hokitika Guardian, 3 September 1929, Page 2

WELLINGTON NEWS

ACTIVITY OF CAPITAL. . (Special Correspondent.) . WELLINGTON, August 33. The Chairman of the Auckland Harbour Board not long ago bewailed the timidity of capital, because so much money was on fixed deposits with the banks. This time money was not idle, for the banks could not afford to hold the money and pay interest on (ininHri without making that money earn something more than its keep. There is 110 timidity about capital, it is more a matter of confidence. Capital has no confidence, or Mery little confidence in industrial ventures. • '

For instance, be would be an extreme! optimist .who would attempt to float a woollen company or a tinij ber compahy, and yet companies are being floated and they are being supported. Recently ’tihe prospectus of a new r bank was extensively advertised, this venture being an intercolonial one. Now there is the pros pect of a new whaling venture coin ing on the market, this being of an internationrl character as Norwegian capital is to be contributed and a Norwegian is to manage the new company. Hunting the whale in the Ross Sea will be the objective, but the concern, could extend its operations to manufacturing fish manure which would be helpful to the country. A picture theatre syndicate has recently appealed for £SO,UK);- This is in ‘ the nature of a third mortgage on the/ latest picture theatre erected In Wellington, and it is not known how the bonds have been taken up by the public. The popularity of the Movies and- Talkies is verytempting to a treasurer who has to raise funds to cover a deficit. The Commonwealth Treasurer is increasing the amusement tax and it is believed that this will seriously ‘ affect profits. Apart from the increased tax .things were not very promising in Australia for picture theatre proprietors. Incessant strikes and the drop in wool and other produce have created unemployment and great hardship in Australia, and some of the.picture places have had to close down.' /

UNITED STATES • TARIFF. \ ' The revision ,of the United Sl ates tariff has caused much bitterness among the customers of that country'; as they recognise that the door through which goods should go to pay for their purchases is being bolted. It, has been assumed that the revision is all upwards. It is pointed out that this is not so. The “Economise” says “To a Europe striving to export and thereby gain the means for foreign payments, it will pass as a grim object to-day that the latest revision of the American tariff is; not all upwards. There is one reduction, on garlic”.

Nor is the‘opinion in the United States unanimous on the subject of revision. Support or opposition is governed largely as interest dictates; even it may be presumed .to the reduction on garlic.” ‘But opposition' to the bill before Congress has co be delicately 'worded. An instance is a resolution adopted by an unanimous vote of the American Exporters and Importers’ Association of New York on June 13, and subsequently presented to Congress. If . the length were the test of effectiveness, the resolution would surely accomplish its object. It reads “Whereas the .present outstanding position of the U.S. in World trade requires the utmost delicacy ip handling all matters affecting international economic adjustments, and wheras maintenance and further development of American foreign trade are. vital to the continuance of our national prosperity; and whereas any action on the part ol the U.S. that would cause needless injury to the trade of foreign countries and consequent offence to foreign traders, and so to their governments must result in ill-feeling and undue sales resistance to American merchandise, , and in foreign governmental reprisals against American trade; an,d whereas Bill No. 4,2667 involves increase of tariff, affecting many industries (including such prominent examples as sugar, hides, wool and lumber), which, if enacted ; into law, would cause drastic injury to American trade with "Cuba, South America, Australasia, South Africa, Canada and other important friendly countries, who are most valuable customers for vital American products; now, therefore, be it resolved that the American Exporters and Importers’ Association petition Congress in adjustment of specific items of the proposed tariff, to give adequate consideration to the welfare of American export trade, and, since general interests are greater than the restricted interest of any particular section of the community to eliminate all changes in tariff not strictly necessary for the proper protection and benefit of the country as a whole”. Notwithstanding a high tariff on commodities the United States has a large free list. For the United States as a whole in 1927 five-eights of the total value of general imports from all countries was reported as free of duties.