CURRENT TOPICS.

Taranaki Daily News, Volume LVII, Issue 23, 17 June 1914, Page 4

CURRENT TOPICS.

THE ONLY ONE TEST. There is only one test of a Government's right to be in power, and that is whether it can command a majority In Parliament. Mr Asquith made this very clear in a speech recently to suggestions that the results of by-elec-tions showed that his party had lost the confidence of the country. A series of reverses at by-elections sometimes precedes a defeat at a general election, but it is by ho means an infallible test of public opinion. There have been three by-elections in New Zealand since 11)11, and in every case the seat has been lost to the Liberal Party—one going to the Keformevs and the other two to the Red Feds. That fact alone should be sufficient evidence of the unrcalibility of the aggregate figures at the election of 1911, as a guide to the state of public opinion in 1914, but unfortunately, the controversialists are more concerned about prejudicing one another in the eyes of the electors tluin in presenting the true facts of the case. — Cliristchurch Sun.

THE MONEY MARKET. "Tliere is practically no alteration in the state of the local money market," (states the current issue of the."Trade Review"). "There continues to be a sufficient supply of funds to meet all legitimate demands, but rates have not materially weakened, Some time back, owing to a general tendency to borrow freely for various enterprises, the banks wisely deemed it advisable to curb undue borrowing, and to effect this rates for botli deposits and advances were raised by y 2 per cent. This had the desired effect, and has kept borrowing within reasonable bounds, and also maintained the market on a more satisfactory level. The banks' advances are keeping a somewhat high standard, but it must be remembered that our trade is constantly expanding, and consequently requires more financing than was formerly the case. The local market has every appearance of keeping fairly steady for some time now. The volume of our exports is well maintained and prices realised continue satisfactory, and the general outlook is fairly promising."