AMERICAN FINANCE.

Taihape Daily Times, Volume XI, Issue 3458, 12 April 1920, Page 7

AMERICAN FINANCE.

{ADVICE TO COLONIAI; C]..l}:JNTb‘.

A DISTURBING CABLE. A private cable was received by an Auckland firm _yest7ei'da.y morning to the effect. that American banks were calling in -all loans,‘ thus causing merchant failures owing to thc sctringenc"y created in the money markets. chant failures owing to the strongthat his clients would be wise to exercise caution in trading for the time being. " i N Seen by a. Star I'epol'tc_~r, the head of a mercantile and shipping firm said he had been advised by crablegram from the States to exercise caution, but. the information was too indefinite to make any exact statement. There certainly appeared to be a rift in the financial situation. in Anierica, but’ as to its extent, and whether it would widen, he really could not attempt to say. As to the effect on New Zealand, he said any curtailing of buying of imports in the States would probably not be felt very much in the Dominion. Kauri gum, flax, and copra were the chief commodities concerned, and as for flax the season had practically ceased. Speaking of the effect on the prices of exports from the States to this Dominion, he said it was hard. to say what would be the effect of a financial stringency. still, it was obvious that a man in need of the (lollars might Very reasonably be willing to ac.cept'a lesser price "than he would hold out for if money were plentiful. A kauri gum exporting firm, wlion interviewed, said they had not received anything to indicate that a financial stringency had set in. V ‘ Several merchants, when questioned on -the point, advised receiving the greports from America with the utmost i caution. '

A manager of 21 well-known f'mun<-.ial institution, when spoken to in reg‘al'(l to the "matter, said his firm had received no intimation of 3113' serious financial slump, andiin View of the fact. that the rate of exchange was steadily improving, he was inclined to doubt the reliability of the statement. He was of opinion that had ‘I here been a slump his institution would have I'o- - an early intimation. of the £2lol‘, they received daily records of the exchange ‘mites. As there was no intimation. he assumed that the statement had slight foundation. A

“The estimated adult population of New Zealand in Decelnbe_l- last; was 650,00(),\” says the New Zealund Methodist Tinle;~.',. “The number of names on the roll on which the _voting' took place on 17th December was about 608.0%, That means that tliere were some 30,000 names on the roll for which 1-liere were no legitiinate owners. That act is one of the most painfully ominous that the public can face. It opens up the possibility of roll-stufling on a. large Scale. It may go» far to explain why it was that prohibition was defeated"'6’fi.“TZt}l December. Those I-10,000 owner]es.< names

were open to appropi-iation by -.1113.’ persons who were tlnscnlpuloiis enough to use them for their own ends. . . The attention now called tothe scandal of a poll so ehorinously in excess of the numtber of people in this COun’n'y entitled to vote should certainly eiigage the attention of the new ‘Parliament as soon QIS‘ it meets. It is‘ 9. question that affects the right of existence of Parliament itself.”