EXTRAVAGANCE.

Taranaki Daily News, Volume LIII, Issue 60, 20 June 1910, Page 4

EXTRAVAGANCE.

Mr. Harold Beauchamp, chairman of j directors of the Bank of New Zealand, in I his address, published on Saturday, alludes to the following remark made at the previous annual meeting of shareholders of the Bank:—"A monetary stringency is being felt in New Zealand, and it is most disconcerting to have to admit, in view of the long period oi prosperity—covering practically fifteen | years—that a sudden drop in values of our primary products for one season only should cause such a financial disturbance as we have been experiencing. The sudden fall in values, however, was not wholly responsible for this. If we seek other causes, we have to recognise! that thev will be found in the inordinateprices paid for land and general extravagance amongst all sections of the com-| munity." The banker, like the doctor,! has "inside information," but it requires no particular expertness to see that the allegation of extravagance is a just one. Although New Zealand manages to do an immense amount of work, what we call the "snendina power" of the people is greater than the people's bank balance I will permit with prudence. It is common l in most countries during a period of national prosperity for the people to live, above their means, and thrift is only a general condition where the earning l power of the populace is low. The specu- ( lative tendency of the people in this Do-i 'minion has the effect of making people ' view the setting and spending of money ' lightly. Ii boomsters did not boom; if land was only of value for the goods it] would produce, then there would be no wealth that was not obtained by fair means.. There is no truism, in relation to money, so apt as "easy come, easy go." Bankers deprecate spend-thrif t proclivities in the people, frequently for the

ssime reason that land agents deprecate a lull in a land .boom. Thriftlcssness uu the part of the people decreases the earnings of banks, and the profits of shareholders. It is just as well, when insisting that the people shall not spend more money than they can afford, not to show the cloven hoof.