WELLINGTON NEWS

Hokitika Guardian, 14 November 1929, Page 1

WELLINGTON NEWS

LESS OPTIMISTIC

(Special Correspondent )

WELLINGTON, November 11

I t is beginning to be realised by. responsible men in the United States that the recent Stock Exchange crash will seriously affect the internal trade of the country. The best financial observers consider that it is yet too early to understand the full significance of the crash and its influence on business. It was mentioned repeatedly, and it was emphasised by President Hoover, that the country was not suffering from any inflation of stocks of merchandise, which is true enough to a point. So long as there was a boom and tlie consumption demanded extensile, stocks were not large, but as tlie result of the crash the consumptive demand for merchandise must show a very considerable falling off, aiid under such conditions present stocks must be found excessive. Mr Holer Babson, who is said to have accurately predicted the crash, has issued a warning in respect to stock. Mr Babson is described as an American institution. Many years ago lie created a regular service of commercial and financial information as a’'guide to manufacturers and investors and built up a clientele of subscribers to his reports and memoranda, and when his name and method had become known Throughout the United States and Canada‘he established the Babson Institute of Statistics and Information. This institute has developed into an immense enterprise with a large staff of statisticians and a wide range of publications. He lias a well-founded reputation for optimism. Business is bound to slacken off in the United States. Several months back it was noticed that building operations throughout the country had slackened. If tlie domestic trade c[eclines American manufacturers are bound to make efforts ko unload their goods on world markets and this will make it hard and difficult for British and other European industries until the American situation simmers down and the full extent of the damage is known, uncertainty will be a feature ol the money market. This needs to be kept in mind, for a dear or even an uncertain money market affects the price level. CO-OPEIUTION IN BRITAIN. Co-operation in trade is an outstanding feature in Britain and great strides are reported. The Co-operative Society’s report for the half-year to July records sales of £43,485,131, an increase of £275,343 on the corresponding period of. 1928. Supplies for the society’s own productive works declined m value rather than in volume. A drop of over £600,000 in the receipts from a greater output of the flour mills more than accounts for the decrease ot £390,651 in the aggregate supplies for the productive works. These totalled £13,639,030, equivalent or practically equal to one-third of the society’s turnover in all sections. An interesting phase of the report is the rise of the export trade to £600,735, an increase of 78 per cent. The closer association of British co-operations with the co-oper-ative societies is further shown by applications for membership of the C.YY.S. received from a society in Buenos Aires “La Internacionale ” Co-operative de Consumos, and from tlie Central Co-operative “ Naprid ” of Bulgaria. In the Banking Department of the Society the tendency towards amalgamation of distributive societies is evidenced, seven accounts having Deen closed during the six mouths owing to this cause. There are now 974 retail societies doing their banking business with tlie C.AV.S. When the trading results are brought together there is a net surplus of £654,825 available for disposal after paying interest on capital and providing for depreciation. The sum of £495,7 1 8 is returned to the purchasing societies in the form of a dividend ol 3d in the £ on their trade, £137,662 is being set aside for writing down land, buildings, etc., and £9,978 is added to the reserve fund which now exceeds a million pounds. Although the prevailing state of unemployment in the districts where the movement lias its greatest membership lias retarded the rapid progress of three years ago the position is well stabilised. Efforts are being made to extend the area of production. RIGHT TO WORK. The West Coast is staging a. strike because the Blackball Mining Coy. refuses to dismiss two non-unionists as required by the "West Coast Distiict Council, and thus another trouble is added to our already heavy burdens. Rut the man in the street is somewhat puzzled over the cause of the strike. The non-unionists who are apparently the cause of the trouble are evidently efficient, workers or they would not he retained by the employers, and their greatest and chief fault L that they are not bowing to the Tnion boss. Wliat of the “ right to work.” These non-unionists and tin 1 Union is doteimined to turn them into unemployed or make unionists of them, and to achieve its purposes tlk* Union is penalising the public. Us it not time Parliament conserved to every man his right to

work if Ik> can obtain it whether unionist or non-unionist? This can be done by legislation and should be done.