NEW ZEALAND’S PROBLEMS

Shannon News, 3 August 1926, Page 4

NEW ZEALAND’S PROBLEMS

LAND, FINANCE, COMMERCE, RACING OUR LONG SUIT. SIR H. BEAUCHAMP’S VIEWS. Some little stir was recently caused by the report of an interview given by Sir Harold Beauchamp, formerly chairman of directors of the Bank of New Zealand, to a Vancouver paper, in the course of which he made some pointed remarks on the commercial and financial situation in this Dominion. Vancouver files just to hand give a full reort of the in-tex-view in question. After mentioning 'that New Zealand contained a mci*e handful of people, only 1,300.000, but that its combined exports and imports exceeded £70,000,000 sterling in valuo, this being, on a per capita basis, the greatest volume of trade of any country in the British empire, Sir Hax*old went on to say: "Moreover, this small community has deposited in the Government Savings Bank, apart from an important private savings bank, roughly £45,000,000, in the names of over 700,000 depositors. Yet, as a whole, wo have to admit that our standard of living is excessively high, and that we spend an inordinate amount in the pursuit of pleasure in every shape or form.

“Probably horse-racing is our long suit. The amount expended in beeting is reflected in the tax paid last year to the Goveimment on the sum put through the totalisator, which yielded no less than £600,000 revenue to the State. There is a certain amount of hypocrisy on the part of the Government in not permitting the publication of dividends, whilst it has no hesitation in acceptingthe taxation the totalisator—familiarly known as the ‘tote’—provides to the national treasury. On Crest of Wave.

“For upwards of a quarter of a century, with the exception of one or two very slight and temporary setbacks, New Zealand has,” he remarked, “been in a most prosperous condition, owing to the very high prices realised for every description of primary produce—dairy produce, i#ool and frozen meat, especially, But the outlook to-day, owing to the steady and persistent decline in the value of these products, is not so encouraging. It is estimated that the year ending March 31, 1927, will show a decline in the value of exports of at least £10,000,000, as compared with the year immediately preceding it. On the other hand, imports ai’e increasing in inverse ratio;; it is quite possible, therefore, that, for the first time for a number of years, since the year of the world boom, in fact, there may be an excess of imports over exports. The experience of many oversea countries: in 1920 would thus be repeated. “This means that there must be a considerable ‘shortening of sail’ if the financial equilbrium of the ship of state is to be presei-ved. Such a policy will, of course, be unpalatable to many who believe in the principle of enjoying to-day and letting tomorrow take care of itself.” ' Motor Exports.

Sir Harold Beauchamp cited the importation of motor cars, motor bicycles and motor accessories and of petrol as just now occasioning New Zealand \nuch concern. Last year, under these heads, she imported £6,600,000 worth —an increase of £1,000,000 over the previous year. With a view to checking the sale of cars on the long-term payment system, the Government is now being urged to take legislative action by excluding motor cars from the benefits of the Chattel Securities Act.

“It may not be generally known,”, said the visitor, “that of its overseas customers, New , Zealand' is Canada’s best buyer of motor cars and tractors. A few months ago, a vessel from a .Canadian Eastern port landed in New Zealand no fewer than 4500 cars and trucks, of a value exceeding £1,000,000. The balance of trade as between Canada and New Zealand is greatly in favour of Canada, and it is to be hoped that the margin will contract as time goes on, for no country likes to carry on a > lop-sided trade , with another. Some feeling has, unfortunately, been shown by farmers in Canada against a moderate increase in the import of butter from New Zealand. Surely such a feeling ought not to exist. The greatest efforts should be exerted in developing an interchange of ' trade between the two countries.”

, World’s Largest Cheese Exporter. Speaking specifically of dairy produce, he added it might be of interest in Canada to learn that New Zealand is jthe largest exporter of chees in the world. Last year 75,000 tons were shipped overseas. Most of this went, of course, direct to Great Britain. A similar quantty of butler was exported during the same period. The total , r exports undoi these two heads touched £20,000,000. "Many people in New Zealand just now,” he continued, “are concerned at the action of the board controlling the export of dairy produce deciding to undertake the whole of the export and marketing of all New Zealand butter, commencing from August next. It is thought that this board, as well as the boards controlling the export of meat, fruit, honey, and other commodities, should confine its efforts to obtaining a reduction in charge for overseas freight and insurance, regulating shipments and the maintenance of a high standard of quality, leaving the actual disposal o f the products, as in the past, to private enterprise. Personally, lam entirely in agreement with the slogan, ‘There should be more business i'n Government, and less Gov* ernment in business.” Land Values and Peak Prices. Sir Harold went on to say: “Ow-

ing to the inflated values of land, based on the peak prices ruling for our produce, a large number of farmers in New Zealand are in financial difficulties, and are clamouring for more assistance from the Government. This has been, to a very large extent, averted through the Government advances to the settlers’ department, which, during the year ended March 31, 1926, lent the farmers no less than t £6,000,000. Still, like Oliver Twist, they ask for more. At their instigation, the Government, a feiv months ago, sent abroad a commission consisting of a leading banker, farmers’ president and the Government’s financial adviser, to inquire into the various systems of rural credit and land banks, with a view to ascertaining which would be suitable to establish in New Zealand to afford the necessary assistance to needy farmers, whose position does not warrant them obtaining assistance through the ordinary channels —the advances to the settlers’ 'department, the banks and financial institutions.” A Great Borrower.

Concluding, Sir Harold said: ‘‘New Zealand, like other British Dominions, is a great borrower, but there is a strong body of public opinion in favour of a tapering-off policy. Tncludng cur national debt, which increased by not less than £100,000,000 through the Great War, it is estimated that we now owe, roughly, £450.000.000, this being the aggregate indebtedness of the Government, public bodies and private mortgages. Against this liability we have assets of not less than £720,000,000, so that we are still on the ■ight sde of the ledger. ‘According to the popular demand at the time, the Government advanced returned soldiers, to enable them to purchase land and stoca and erect houses, roughly £27,000,000. Many of these soldiers, without experience, and having been placed on too high-priced land, have failed, and, if there was to be a general wash-up just now, the Government, would lose a large amount n respect of these advances. This, however, is to be considered as part of the cost of the Great War.”