A NOTE OF WARNING.

Taranaki Daily News, Volume LIV, Issue 106, 25 October 1911, Page 4

A NOTE OF WARNING.

A note of warning was sounded by the president of the Australian Corporation of Public Accountants in Adelaide at its annual meeting in respect to the general prosperity which Australia and New Zealand have enjoyed for several years. The banks, he pointed out, had for the last ten years been shipping gold heavily, and if there should be a shortage in natural products tliev would be called upon to pay for their imports with gold instead of with wool, wheat, meat or dairy produce. Then would follow an immediate hardening of money rates and consequent restriction of trade. Returns showed that the ratio between exports and imports had veered round largely in favor of the latter, which meant that unless they had an abnormal increase in their exports gold would have to be sent Home to pay for them. One sign of the tendency in undue speculation was observable in the very large number of private concerns which were being converted into limited liability companies, with, of course, the inevitable loading of the goodwill. The community had gradually drifted into an era of extravagant living, the value of rural land had advanced enormously, and when the cycle of lean years is again with us the reaction would come with painful sharpness and suddenness. In the opinion of the New Zealand Trade Review the Dominion's exports will be approximately about two millions sterling behind the previous season, while, on the other' hand, imports continue to grow steadily. A year ago the excess of exports over imports was close on six millions sterling, while for the year to June 30 last the excess was reduced to about ■ two nn<}: a-lialf millions. Viewed from various standpoints, it would appear that a measure of caution on the part of our advisers is advisable at the present juncture. ;