BRITISH MONEY.

Taranaki Daily News, Volume LIV, Issue 155, 29 December 1911, Page 3

BRITISH MONEY.

j BUT LITTLE FOR NEW ZEALAND. I AROEXTIKE MORE ATTRACTIVE. Mr. \\'illiiim Watson, a director of the .Bank of New Zealand, who has been touring the United Kingdom and the Continent, lias returned to Wellington. hi (lie course of tin interview with a Post reporter, Mr. Watson had some interesting things to say about British capital and its movement. He spent much time in the City, and there met men from or representing all parts of tho world whither British money flows and whence it returns. '"'New Zealand and Australia," said Mr. Watson, "are not at present very attractive to the British investor. Why? There might be some money found for oil and things of that sort, but the investor finds a more profitable outlet in the United States, Canada, and above all in the Argentine. In tho River Plate country the rates are 7 per cent, to 8 per cent., and there is not the slightest fear on the part of investors, I found, as to the stability of the (iovernnient, or as to the i«fety of their security. There is an enormous outflow of British capital into th:: Argentine, and that country is making phenomenal progress. Why, you hf.ve your own New Zealand anil River Plate Company, which has practically all its interests in the Argentine, whose £1 shares aro now £2, and which pays its 9 per cent. NEW ZEALAND NOT A SUITABLE FIELD. "No, I do not think there is any use foi New Zealand to go to London for money at present. This country—with Australia—is not considered to bo a suitable field for investment of English capital. It may be that other outlets of capital are more attractive; it may be that, being sufficient money in this country for its present needs, this field is not sufficiently profitable. To the Government belongs the credit of financially helping the farmer, and so there is plenty of money in the country. With regard to the capital required for any new enterprises here, or the extension of those already established (as I also in Australia), such, as, say, coal or timber, I do think that the labor difficulties experienced, or likely to be experienced, make it difficult for capital to come here for investment in such undertakings. In the Argentine labor I is cheaper and more Abundant, and the Government encourages the investor's assistance in developing the eoujitry. CHEAP LAND. "Land is much cheaper in the Argentine than in New Zealand," Mr. Watson added. Land that would carry a fat cattle beast to the acre was thought | dear at £8 to £lO an acre, while land I of similar quality in New Zealand would cost from £BS to £SO an acre. Con- . ssidering wiiat they paid for land and I labor. Argentine dairy farmers were iloi ing better than New Zealanders with their butier in London at 124s per cwt, as against ours at 129s per cwt. British investments in the United States were taking the form of the purchase o* tnormouj estates by the English noiiiiity and gentry, who regard the States as a safer place for capital investment than England. Canada attracted British investors in industrial as well as municipal and Government propositions. , I HOME RULE QUESTION.

In Ireland, Mr. Watson looked rather closely into the Home Rule question. Speaking for Dublin only, the limit of his observation, and not for Ireland as a whole. Mr. Watson said: —• " I! am quite satisfied that Home Rule is the tiling for Dublin. All I met there were men, both Protestant and Catholic, who spoke without bias or feeling, and they agreed that there was no doubt that the landlords had drained the money out of Ireland through the renls. and lu.d not invested it in the, country. In the great city of Dublin, the only two considerable local industries were Guinness' Brewery and Jacobs' Factory. With' Home Rule Dulv'm might become a thriving and prosperous industrial city. Home Rule, as I understand it. would favor industrial devd lumcnt and the closer settlement of the land. I am not prepared to say that financially Home Rule would he for the benefit of Ireland, as my enquiries were limited to Dublin."