The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MEROURY (TUESDAY, JUNE 16, 1931.) THE WEEK.

Otago Witness, Issue 4031, 16 June 1931, Page 43

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MEROURY (TUESDAY, JUNE 16, 1931.) THE WEEK.

“Nunquam allud natura, allud eapieutia dixit.” -Juvenal. “Good nature and good sense must ever join.”— Pops.

The Dominion Loan.

It was something of a blow to find that

in spite of the favourable reception that was anticipated by the London press, the New Zea-

land £5,000.000 loan was accorded only a poor response on the part of investors, and the underwriters have been left with almost two-thirds on their hands. New Zealand has, not without reason, rather flattered itself upon the fact that the credit of the Dominion has remained high in London while Australian credit disappeared, and it is surprising to find that money is so difficult to obtain. One reason for caution on the part of investors probably is that the close proximity of Australia does not help the Dominion at the present time, and it may be that the Hawke’s Bay earthquake has made people living at the other end of the world unduly apprehensive. There is also the consideration, which the Financial News suggests, that at present money for overseas investments is not very plentiful at Home. VThatever the reasons, New Zealand has the satisfaction of knowing that in spite of her heavy overseas commitments the Dominion’s position is sound. Unfortunately, the new loan will prove costly to the taxpayer, the Prime Minister estimating that its charge will be

about £6 Is 3d per cent., but so long as it was necessary to obtain the money there is nothing to be gained by regretting the cost.

Meeting the Crisis.

The means whereby the Federal and

State Governments in Australia intend to restore budgetary equilibrium provide for

most of the drastic measures that have so long been urged by economists and financiers, and so long neglected by the governments. The present financial year ends this month, when the governments will have a total deficit that is expected to be well over thirty millions—the Federal Government alone has a deficit of more than £17,500,000. It is, therefore, to the budgets for the coming year that the governments must turn, and they are applying the pruning knife in the shape of an allround 20 per eent. budgetary reduction. Even with drastic economics and increased taxation, deficits cannot be avoided. The Federal deficit for 1932 is estimated at nearly four and a-half millions, and that in New South Wales at nearly five and a-half. The huge conversion loan, if it goes through, will give the country a- helping hand in weathering the financial storm, and the messages concerning the proposal predict for it success. If an appeal fails, there are other means of achieving the object, though it is to he hoped that compulsion will not be needed. As in all matters in which Mr Lang is concerned, there is a piquant feature in the latest plans, namely, the declared intention of the Premier of New South Wales to reduce Government salaries to a maximum of £soo—preferably by consent, but if necessary by legislation. It is a matter for surprise and some amusement that Mr Lang, who has never so far come off the victor in a tussle with the State Legislative Council, is so soon preparing to engage it in battle again. But his general irresponsibility explains, if it does not excuse, his latest ludicrous plan.

The Railways Board.

In its appointment of a Railways

Board of five members the Government was confronted with no easy task. The salaries that

were offered are not high, and the duties promise to be very exacting. Apparently there was no lack of candidates for the positions, and it is greatly to the credit of the Government that a selection has been made without any trace of political bias—the two members who may be said to have any pronounced political leanings having been opponents of the United Party. It is gratifying to learn that the present General Manager of Railways (Mr Sterling) is later to become chairman of the board. The knowledge of railway administration which he has gained should prove of the greatest value to a board that will have many difficult problems and presently has little actual experience of railway management. There is the consideration, also, reflecting credit on Mr Sterling, that in going on to the board he will be making a not inconsiderable personal sacrifice in income. The difficulties confronting the railways in New Zealand are tremendous. Passenger revenue shows, on the latest figures, a decline of 14.2 per cent, and goods traffic by 9.3 per cent., while operating expenditure has been reduced by only 6.5 per cent, against a decrease in operating revenue of 9.3 per cent. In short, revenue is declining faster than economies can be made. What the board will be able to do in improving the position remains to be seen, but it is at least encouraging to know that the railways are being removed from the political control that has cost the country dearly in the past.

Unemployment Relief.

The announcement of the Prime

Minister that the Unemployment Board has come to the end of its resources will have

occasioned no surprise. It lias been obvious for months that the revenues of the board, which are derived from the unemployment levy, plus a £ for £ subsidy from the Consolidated. Fund, could not withstand the demands made upon them. When the unemployment relief proposals were introduced there were about 7000 registrations of unemployed in the Dominion, and in the past six months the number has risen to nearly 40,000. The board’s funds, however, have not increased, and the result has been that expenditures have amounted to £40,000 a week, and revenue has remained at £24,000 a week. It was inevitable that, in the face of these figures, the board would be forced to confess itself beaten unless further funds are made available. With the proposed suspension of the No. 5 scheme there can be no alternative to the rather unpalatable fact that more money must be made obtainable. It is I well known that with the relief schemes in full swing there exists tremendous misery and distress, and the cessation of an important part of the present work would reduce many persons to the point of starvation. The Government may be expected to make the matter of procuring further unemployment relief funds an urgent business of the coming session, and in the meantime it is left to the people of New Zealand, through charitable organisations, to give to the distressed all the assistance they can afford.

The M‘Kenzie Cairn.

With the unveiling of the new M'Kenzit

Cairn on Saturday—the first erected having unfortunately failed to

withstand the tempestuous breezes on Pukeviti—the work of a great New Zealander has been given appropriate recognition, and the admirers of Sir John M'Kenzie can congratulate themselves that the persistence of their labours has had its reward. No more striking tribute to the gratitude that many settlers feel for the late statesman could have been made than the fact that some thirty years after his ' death his services to the land of his adoption are still remembered sufficiently clearly for a memorial to be re-erected to his memory. The political history of the later part of the last century has already grown dim, but certain statesmen of that time and their wise foresightedness are still recalled with gratitude and respect. Of these, one is Sir John M'Kenzie, whose legislation as Minister of Lands in itself is his most lasting memorial. He was a strong man and a capable, and his experience in Scotland fitted him to ensure that the injustices of the land system in his own country should not be repeated here. To that end he gave generously of his time and his powers, and there are many to-day who scarcely know his name, yet have to thank him. The new cairn is of durable stuff, as Sir John M’Kenzie’s work was, but even so it may pass away before the fruits of his work lose their beneficent influence upon New Zealand farm life.

The Bank of New Zealand,

Banking figures are to a great extent

an index of prosperity, especially in the case of an institution of the importance in the life

of the Dominion of the Bank of New Zealand. The annual report shows that the bank has not escaped the effects of the depression, and the returns suggest, indeed, that lower profits may be in a degree due to the extra assistance the bank has given to customers. In the following table, which shows the annual profits for 30 years, the figures for the years prior to the last decade are

The directors have been able to recommend the payment of dividends on the same scale as in recent years, an indication of the soundness of the administration of the business of the bank which enables it to face bad times more resolutely than many business houses are able to do.

During the past few months arrangements have been in hand for an extension of the train control system from Oamaru to Dunedin. Train control on the Main South Trunk line has existed between Christchurch and Oamaru, but from yesterday the system was officially extended to Dunedin with the Oamaru - Dunedin section under the charge of an officer at Dunedin, while the Christchurch - Oamaru section will continue as hitherto. Testing of the new section has been carried out during the past few weeks and has proved satisfactory. Ultimately train control will be carried on to Invercargill. The system is stated to have been responsible for eliminating delays which were unavoidable prior to train control, when the crossing of trains was in the hands of station masters. Every train between Christchurch and Dunedin will be charted and a speedier service, particularly with freight traffic, should result.

Copies of an Order-in-Couneil prohibiting the use by anglers of any wire or gimp trace, plain or twisted, of a greater gauge than 21 standard, and the use of any rod of greater length than 11 feet in one piece, were forwarded to the Wellington Acclimatisation Society on Wednesday night by the Under-seeretary of Marine (Mr G. C. Godfrey). Mr F. Dyer said that the prohibition was evidently intended to apply more to southern rivers, where numbers of quinnat salmon were reported to have been taken by stroke-hauling, the process being to flog the pools with a 16ft bamboo and a long piano-wire trace bespangled with large double hooks, throwing the trace across the pool and foul-hooking the fish. Members thoroughly approved the prohibition.

In view of the benefit that would follow greater gold production in Otago at the present time, residents of the Cromwell district are showing increased interest in the possibilities of mining. Experienced miners are still obtaining gold in small quantities from the Kawarau River while the level is low, and the opinion is freely expressed that considerable quantities of gold have yet to be recovered from the river if suitable means of obtaining it could be devised. A suggestion that is gaining wide support in the district is that a second dam should be constructed below the Shotover and Arrow Rivers in order to hold back the water from them and expose ledges which have not so far been reached. It is claimed that this could be done at a cost which would enable gold to be profitably obtained.

grouped:— 1901-4 (average) £210,890 1905-8 (average) 300,016 1909-12 (average) 318,497 1913-16 (average) 349,077 1917-20 (average) 427,291 1921 .. 827,255 1922 .. 682,043 1923 .. 553,639 1924 .. 753,831 1925 . . 819,286 1926 . . 912,160 1927 . . 847,671 1928 .. 841,873 1929 . . 912,954 1930 .. 948,534 1931 .. 845,813