ABUNDANT MONEY.

Taranaki Daily News, Volume LVII, Issue 273, 28 April 1915, Page 2

ABUNDANT MONEY.

WHAT .SHOULD RE DONE WITH IT.' A COMMERCIAL POINT OF VIEW. I In Ills annual address to the Wellington Chamber of Commerce, Mr. C. W. Jones, the retiring 1)1-051(10111, touched upon the abundance of capital in New Zealand due to the enhanced prices of produce. "At present," he remarked, "New Zealand occupies in this conflict a very favorable position. All, or nearly all (for I regret that hemp Ims not participated) our exportable natural pro- ] ducts are bringing higher prices owing to the war. For the year ended Sep- I tcmber 30 last, our exports amounted to nearly 2% millions more than the imports; and the Prime Minister gives us tc understand that at the period ended March 31 the figures were still more striking. The bunking returns also show that those institutions are holding an unusually large amount of 'call money.' This all means that an unusual supply of capital has been flowing in our direction owing to the demand for our products, and I venture to put forward the opinion that this extra capital should be applied to our local development. We cannot look to London for a long time in all 'probability, and our motto will have to be self-help for some years. "1 think it would lie patriotic in those who control this extra capital to show a disposition to invest some of it in local loans, and to be satisfied with something moderate in the way of interest. We lately read of a farmer who gave £IOOO to a war fund, which he said was extra money brought him by the war. lam sure that his is not an isolated instance of such a public spirit, and that if it is realised that we are thrown upon our own resources for local development, those who have money to invest will he willing to devote it to local requirements. Twelve months ago I expressed an opinion against local loans for development purposes, since then circumstances are so radically altered that 1 shall hardly be accused of inconsistency. There is another national virtue, the exercise of which is being strongly urged upon us by the war, and, this is the virtue of economy. It does not need a 'prophet to foresee that this country will need every penny that it can save to meet a period of stagnation, which history teaches us follows in the wake of war. We, no doubt, posses* great powers of recuperation, but one of the great factors in recuperation is economy in living and avoidance of waste. This is at present our national duty."