THE MONEY STREAM.

Taranaki Daily News, Volume LV, Issue 124, 12 October 1912, Page 6

THE MONEY STREAM.

IS CANADA COURTING TROUBLE?

(By Telegraph.—Own Correspondent). Wellington, Last Night. Mr. Frank Gellatly, financial editor of the Sydney Morning Herald, in the course of a brief narrative to a Post representative of his recent visit to London, Canada and the United States', said much that was interesting from a financial point of view as to the outlets which British capital was seeking. He was asked how Australia and New Zealand stood in the eyes of the British investor, and particularly .the great cities of the Commonwealth and the Dominion, when applying for loans. He made it clear that a distinction was drawn between local and State loans. Australia stood very well, but New Zealand was not quite so well with the investors. There seemed to be an impression in London that New Zealand was just a little too swift; that, indeed, the time had come to slacken off somewhat. There was an important point to remember in connection with loan 3 to countries like Australia, Canada and the Argentine, as compared with the older countries, which went to London for accommodation.' It was recognised that the young countries were using their money for developmental purposes, resembling rather increases of. the capital of large industrial undertakings, whereas the older countries were not invariably using the money they were borrowing. China might be now classed with these newer countries, and hence when the money was required for railways or similar purposes it would be ,more attractive to investors. Then there was the view taken in the United Kingdom that that country was essentially a large manufacturing concern, consuming immense quantities of raw material. It was recognised by themselves as being really in their own interests to lend money to countries producing raw material—wool from Australasia, for instance, cotton from America, jute' from India, tin from the Straits, and so on.

A TIME FOR CAUTION. As to Canada, Mr; Gellatly thought that there was trouble ahead for that country. It was only his personal opinion, expressed with the utmost reserve. He could see that there was a boom in Canada, not necessarily confined to the West, which he did not visit. He •poke of the eastern or maritime provinces. The sequel to the boom was the "bust," of course, and it was clear. He found too many men in London who were well informed on the matter that there was some anxiety for Canada. Perhaps "anxiety" was too strong an expression to use, but there was undoubtedly a feeling that the exercise of the utmost caution was essential to Canada's future. FINANCIAL PROGRESS.

The political atmosphere of Europe was heavily charged with trouble at the moment, and it was impossible to eay how far-reaching the effects of a serious disturbance would be. At any rate, the money markets was certainly not likely to ease very much while the present state of unrest existed in Europe. VIGOROUS ENGLAND.

So far as the old country was concerned; Mr. Gellatly went there' as an ' Australian native, and for the first time. He went with the expectation of finding the intense poverty, dire destitution, squalor and despair of whieh he had heard so much in Australia by reading, «nd from people who had been Home. He went seeking it. He "did" the East End—Whitechapel, Limehouse, Petticoat Lane and some of. the other poorest parts of London. He was agreeably disappointed. He saw the people poor, but with generally bright, alert and smilipg faces. He saw very poor people, of course, but he also saw, for the most part, brisk working people going about their work apparently contented and well 1 fed. "All the time I was in London and in its many different social divisions," said Mr. Gellatly, "I was never once asked for a copper, never saw a beggar, was never asked for bread or the price of a shelter. Frankly, I was most astonished. This was not what I had looked for. I saw the dock strike, too, and its many startling incidents, but I saw none of the horrors which I had thought to see, and, I need hardly »ay, did not wish to see. I fear we in Australia get some very hazy notions of the Old Country. It certainly did not appear to me to be the played-out, effete, antiquated old country it is often represented to be. On the contrary, it is very much alert and progressive. All its circumstances considered—its vested interests, customs and traditions—the city of London is most impressive to a business man. Huge transactions are conducted without unrest or display of any kind. Hundreds of millions of money are turned over. Demands from all over the world are satisfied, and all is done quietly and unostentatiously, and all, too, within a very limited area, the centre of which w the Bank of England."