BANK OF NEW ZEALAND

Taihape Daily Times, Issue 220, 22 June 1917, Page 4

BANK OF NEW ZEALAND

ANNUAL MEETING. HELD THIS MORNING. EXCERPTS FROM CHAIRMAN'S REPORT. *t At the annual meeting of the pro- : prietors of the Bank of New Zealand,, held this morning, the Chairman (Mr, Harold Beauclianip) in his report, among other things, dealt with questions of supreme interest to the people of the whole Dominion ( they are as follows: SHIPPING PROBLEM. The shipping problem is the greatest difficulty we have immediately to face. I need not tell you that the trouble arises because of the indiscriminate and unrestricted use of submarines by the Germans, in violation of ail the laws of naval warfare. Several of the vessels well known in New Zealand waters have f ailen victims to German IT boats, notably the "Rotorua" and the "Otaki"'' while the weekly shipping losses of the Allies and Neutrais total up a formidable tonnage. Ruthless submarining, which has brought. America to the assistance of the was begun on February Ist, and the Teutons calculated on sinking 1,000,000 tons per month. As far as can be ascertained from unofficial figures, at no time since. February Ist have the Germans succeeded in their efforts, although a considerable tonnage has been lost. The net decrease in the world's merchant tonnage in 1916 is estimated to have been only 200,000 tons, losses occasioned by the war and by other means having been nearly made good by new construction. The loss of tonnage has been greater since, but against this must be put the fact that the entry of the United States and Brazil into the war made available about 900,000 tons of German shipping that was lying idle. Furthermore, most of the shipyards in the Allied countries,.including Japan, are working at high pressure building merchant vessels, and it is reasonable to suppose that the losses through submarining will to a ■ very large extent be made good. 'We' have also to bear in mind that the 1 greatest scientists and naval 'experts frr'the- 'Allied countries ' are focussing their"'attention on devising means for dealing with' submarines, and, : at any moment, we may learn that an effective method has been discovered. In the meanwhile, all must suffer, and New Zealand fteiv haps to a greater extent than others. The matter of supreme the moment is to supply Britain, France and Italy with foodstiinV'and munitions. These can obviously" be most expeditously supplied by the countries nearest at hand which are able to produce them. For this reason,'' vessels engaged on long distance 1 voyages are being withdrawn, wherever possible and placed on the shorter routes. We shall, therefore, probably continue for a time to experience' difficulty ; ih' ! exporting and importing." This'will, of course, cause a material reduction in our trade figures, and react upon us in other ways. W« have also to consider the probable effect on primary industries of a continuance of the present shortage of shipping facilities. We cannot pile upperishable produce in cold stores indefinitely, because there is a limit to the storage capacity, and moreover, longstored produce has a tendency to deteriorate. This constitutes a seriousand perplexing problem. The best minds in the country are, however, grappling with it, and everything that it may be possible to do to relieve the situation will certainly be done.

THE COST OF LIVING. The cost of living is steadily rising and is pressing with unusual upon those with limited salaries. The purchasing power of the sovereign now ag compared with 1914, is greatly reduced. The New Zealand Government has taken steps to meet the difficulty, and has succeeded to some extent, For instance, sugar is cheaper in New Zealand than perhaps anywhere else in the world, and this is due to the reasonable spirit in which the Colonial Sugar Befining Company—practically our sole supplier—met the Government on the question of supplies and prices. The increased cost of living is a subject upon'which we have heard a good deal since the commencement of this world-wide war, but there appears to be considerable misconception, especially in this Dominion, with regard to the causes of ft. Many people seem to think that prices of commodities have been raised by wholesale and retail merchants, through combination or otherwise, for purposes of profit and without any justification. In this connection one has to remember that in respect to many articles we use and consume, we are dependent upon supplies from overseas. Now, the majority of these lines have enhanced enormously in price at port of shipment, and, before reaching this country, there have to be added tJ?Mko freight (calculated at not less tlan three times the rate ruling before the war), war risk at from £1 Is to £lO per cent., higher rates of exchange 'and

duty,, and other prime cost, a table pufeMshed in the "Economist" of 7th Apri£ 1917, dealing with many essential commodities, shows that, starting with a basis rate of 100 per cent, as an average in 1901-5, the percentage figure has risen during the War from 116.6 to 240.9. As regards New Zea--10& produce and goods manufactured in this country, it must be borne in mind that prices of the former are largely, if not wholly, determined by the values ruling in London, or in the other markets to which our produce may be consigned, or by the prices paid by our Government on behalf of the Imperial Government—whilst the latter are affected by increase in cost of raw materials, higher wages, etc. Faced with these facts, it must be apparent that it is quite useless for a section of the community to urge the Government, as was done recently, to take steps to force traders and producers to sell at pre-war prices. In mdst cases, it would be, for the reasons stated, an utter impossibility to do so. Whilst much prominence has been given to this question of increase in the cost of living, we Tarely, if ever, see a suggestion that, to meet the additional burdens that are being cast on us by the there should be any reduction in tjfe standard of living. If the "standard" were modified to meet the altered conditions, people could face the increased cost of living, with much greater equanimity and without undut hardship to themselves. NATIONAL ECONOMY. In spite of the increased cost of living other seeming handicaps, the spending power of the community appears to be in no way restricted. The need for national economy is being constantly proclaimed, but, unfortunately to all appearances is being, as constantly, largely ignored. Extravagance is rife, and the lavish expenditure, which is being made on dress and pleasure at the present time is, to say the least of it, very regrettable. I attribute it to the fact that the - baleful effects of the war have hardly reached our shores; that so far the consequence upon us, financially, has been entirely beneficial —the prices, of ; ..our primary products having been forced, •by war conditions, up to levels never ~.before dreamt of—and .that, with, this unexampled .prosperity surrounding them, the majority of our people are prone to..,close ( .theii; eyes to the grim and portentous happenings on the other Side of the world. With all the requisites of self-indul-lying ready to our hands, it requires the exercise of some restraint to be other than self-indulgent. But the time has come for a halt, and for taking serious stock of the position. The demand for a more economical code of living in all parts of. the British Empire is. becoming clearer and more insistent, and; I apprehend that, if the /war continue, the,call for; greater economy in the National outlay will ere ..long be proclaimed in ways that will necessitate a- (i more genuine response thsn,,has so far been given to the appeal., j,. - •-.-,- THE PENDING WAB LOAN. The Acting-Minister of Finance has already warned the country that the Government will issue another war loan as soon as the necessary authority is obtained from Parliament. Having regard to the heavy strain on the financial resources of the Mother Country, it seems to me to be only right that we should endeavour, within the limits of our resources, to finance our own war expenditure. The objects of the loan must appeal to the patriotism of every section of the community. Much of the money raised will be disbursed in the Dominion, and a substantial portion will go towards the support of soldiers' relatives living here among tM.' We must, therefore, as loyal subjects of the Empire, and as good citizens of New Zealand, be in favour of the loan, and accord it our sympathy and support. The financial position of the country, to which I have just referred, is such that there can be no doubt of our ability to provide what is

necessary. The Earl of Derby, British Minister for War, speaking on the subject of the British "Victory" War Loan, stressed the, point again and again that the three things necessary to bring the War to a speedy and satisfactory conclusion are, —money, men, and munitions; and he further specially emphasised that those necessaries are required in the order in which they are stated, —money bojjng the first and greatest essenti&l. ' I am sure, if the people of this country, can be brought to realise that fact, the fate of our own "Victory" War Loan will not be in doubt, and it would gratifying if it was - crowned with a success proportionately as great as that which attended the "Victory" Loan of the Imperial Government, to which over £1,000,000,000 were subscribed—an amount exceeding the British Treasurer's most sanguine estimate by about 50 per cent. Here is a way in which those of us who are of bearing arms, and enduring the fatigues and hardships of warfare, can contribute an essential to Victory, and do our part towards th«

achievement of the indispensable end in the only way possible for us. AGRICULTURAL OUTLOOK. The shortage of labour is likely to be keenly felt next harvest, unless the available man power—and also the woman power—of the country are organised. It is imperative that the country should produce more foodstuffs, and if all the available land is put into cultivation (including cottage gardens) we should have more than sufficient to meet our requirements. It is particularly essential that we should grow more cereals, as the present war has emphasised the importance of every country being, as far as practicable, self-supporting as regards food supplies. Efforts are being made to overcome the. shortage'of breadstuffs, and farmers are being encouraged to substantially increase their wheat acreages, under a price guarantee which should leave the growers with a reasonable profit, allowing for the increased cost of production. Farmers in New Zealand have always exhibited a praiseworthy patriotic spirit, and I have no doubt the appeal of the Government to produce more cereals will meet with a hearty response, particuarly as cereals are food-stuffs which suffer least of all by prolonged holding.