FINANCIAL OUTLOOK

Taranaki Daily News, Volume LII, Issue 159, 30 July 1909, Page 4

FINANCIAL OUTLOOK

AUSTRALIAN PROSPECTS. " NEW ZEALAND'S POSITION IMPROVING. MR. HAROLD BEAUCHAMP'S VIEWS. "They are apparently experiencing no trouble in Australia just now from a financial point of view," remarked Mr. Harold Beauchamp, chairman of directors of the Bank of New Zealand, who leturned on Wednesday after all absence of a month visiting the principal States of the Commonwealth.

"It is quite true,'' said Mr. Beauchamp to a Times, reporter, "that the banks as a whole are following the same policy laid down by the banks in New Zealand some time ago, in abstaining from making advances on real estate; that is, on what may be described as really mortgage advances. Happily, in Australia the financial position is easier than in New Zealand, in that there are so many, mortgage and investment companies doing business, and so many wealthy private investors, men of large means, who always have money available for mortgage purposes. We have not got quite the gams class here; they have ceased operations in New Zealand since the creation of the Advances to Settlers Department and the active competition of the State in lending money.

"You can get plenty of money in Australia at rates from 4 1 /. to s'/ 3 per cent., according to the attractiveness of the security. I observed a curious condition of all'aii's at Ilobart. Whilst trade and commerce there generally is dull, n. good deal of money is available for loan purposes; in fact, 1 was told that In some instances money has been lent out there at 4 per cent, on very gilt securities, and at i'/* to 5 per cent, on first-class mortgage, hi Ilobart they have a very old-established and nourishing savings bank, having-neither shareholders nor proprietors, money being simply lent, and the investors got a certain rate of interest. This is a very useful institution in lending out money on certain securities."

What was the general feeling in regard to New Zealand? "There seems to bo some sort of feeling in Australia regarding Now Zealand. I don't know,exactly how to describe it, but there is no doubt that they appear to take a certain amount of pleasure in the depression we arc passing through. The newspapers contain a good deal regarding our financial stringency and the, alleged exodus from New Zealand. At any rate, they don't appear to be sympathetic towards New Zealand just now. In some circles there seemed to be an idea that we had got ahead of them in regard to several matters —• probably over the Dreadnought offer, which practically forced the hands of Australia. However, there it is.

'•At the in oincnt, the outlook in both Victoria and Xeu South Wales is decidedly brighter than in New Zealand for the immediate future. They have «ot very large areas of land which have been bought, and are still to be bought, at comparatively low prii-os over the whole continent, producing grain and other produce, and under these conditions they are in a nuieh better position to make bigger returns than we are with the dear land in New Zealand. In other words, I should say that a farmer or station-holder in New South Wales in good seasons could make as much out of his property in five years, tender .present c onditious, as a man similarly placed in New Zealand could i erhaps make in double that time The recuperative possibilities of Australia are marvellous,

So far as Now Zealand is concerned, have never been pessimistic. As I told ,them over there, too much is bain* made out of this alleged financial striaftoncy of ours. As to the departures ion, our shores, I view that matter with perfect equanimity. No doubt a number are being attracted to Australia hy the reports of the prosperity in New .South Wales and Victoria, and bv the earlier employment-shearing agricultural and slaughtering work, c"tc. Imt most of those ivho are leaving New .and are m igratory, and come back again like the swallows. v™- L '!" t , on tlic w,,01c tllin K s in ~i- l I '!' '•( T 1 " ,inaiK ' ii ' l oi.it are decidedly sound. The recently published banking returns show that t ie banks here are getting in a much stronger position, and that there is Plenty of money available for legitimate enterprises. though the banlj S "are not bulling money to holster up land speculation at boom prices. W 0 nrc nlwl T lnt " ,moo " | er waters, future" 11 " 1 q " Ileful as to th ®