The Daily News. SATURDAY, DECEMBER 4, 1915. A BANKER'S VIEWS.

Taranaki Daily News, 4 December 1915, Page 4

The Daily News. SATURDAY, DECEMBER 4, 1915. A BANKER'S VIEWS.

The chairman of directors of the Bank of New Zealand (Mr. Harold Beauchamp) invariably takes advantage of the halfyearly i£.ueliiig3 to review at length the financial .situation, aud to comment on the \arious. matters 'and influences affecting the prosperity of New Zealand and the Empire generally. His address to the meeting which was held yesterday was more noteworthy for its length than for any new light thrown on financial matters. Naturally, considerable attention was directed to the circumstances connected with the effect of tho war on trade, commerce, and finance. Although the statement that the financial might of Britain has been a theme of constant encouragement and confidence relative to the final issue of the war is by no means new, it is satisfactory to find it has the endorsement of such a high authority. The same remark applies to the opinion expressed that the war is a test of endurance, and that the side controlling the longest purse holds a position of immense superiority. >lr. Beauchamp also reiterates the need for economy, and lie does not fail to administer the usual cold douche which ir". invariably to be found in his periodical statements. He is, apparently, afraid "that an overweening confidence in our financial supremacy may encourage, nay, is encouraging, a recklessness and prodigality in expenditure which may, if not checked, expose the Allies to a risk of that first exhaustion which is to be the determining factor in tho struggle)" The point is elaborated extensively, but it would have been more to the purpose had Mr. Beauchamp given chapter an:l verse for his contention instead of making a general statement that is unsupported by evidence. It is true he points out that the enemy's expenditure is far less than that of the- Allies, owing to the superior advantage of railway facilities, being self-contained, having less to pay for the soldiers, and a smaller outlay on food and clothing. He. might have added that its naval expenditure should bo infinitesimal, except as to submarines, but that its expenditure of men, munitions, and aircraft is lavish beyond all reason, to say nothing of the vast amount of money used for stirring up strikes, propagating false news, and bribing neutrals on a wholesale scale. He sums up the situation with tho statement that the Allies (meaning Britain principally) are matins war on « bails

calculated to strain their resources to the uttermost. It would be interesting to know how Mr. Beauehamp would carry on the war. His financial criticisms in this connection are on a par with those of Colonel Repington and Mr, Ashmead Bartlett relative to the conduct of the strategical operations, No doubt he means well, but his views are by no means helpful. He quotes the old adage that "a penny saved is a pound gained," but he might also remember that the man who uses a trowel to build up is far and away the more useful citizen than he who uses a sledge-hammer for purposes of destruction. After paying a generous tribute to our enemies for "living, as well as fighting the battle," Mr. Beauehamp deduces the moral that "we must face our economic problems in the spirit which our enemies confront theirs." If this advice -were carried out wo should be living on paper currency, and the holdings of the banks commandeered. Of course strict economy is imperative; and the press of the Dominion, as well as the British Premier, have for a long time stressed this fact, yet Mr. Beiiuchamp enlarges upon it as if it were a new idea, and the same may be said oJ his remarks on the desirability of the Empire supplying its own needs to'the utmost possible extent. His reference to the American loan and the AngloFrench Commission contains no new facts nor figures, and his advice to trado within tile Empire lias already been emphasised on many occasions, but will do no harm by being repeated. The detailed statement of Britain's war expenditure and how it has been met to also matter of history, and the need for another loan before long is obvious. Mr. Beauchamp's remarks on the outlook for the Dominion leave nothing to be desired, but in the midst of this feast o? abnormal prosperity there is introduced the warning that after the war "prices will drop heavily, and the recoil may carry us to a point of depression as abnormal as that of the present inflation." With, the Bank of New Zealand's chairman there can be no feast without a skeleton—in this case the skeleton of lean years. The spirit of economy tkat is possessing his soul just now extends to the Bank's expenditure in the matter of taxation. While professing not to complain on this head, as the Bank is doing well, he contends the tax is inequitable, and that Parliament should assess the Bank's profits upon a more liberal and equitable basis. With that opinion most of the public will differ, for if there i 3 one institution that should contribute largely just now to the Dominion's treasury it is the Bank of New Zealand, if only on the ground that but for the friendly intervention of the State the Bank would have ceased to exist.