THE Wairarapa Age MORNING DAILY. FRIDAY, APRIL 2, 1909. SEEING AT LAST.

Wairarapa Age, Volume XXXII, Issue 3153, 2 April 1909, Page 4

THE Wairarapa Age MORNING DAILY. FRIDAY, APRIL 2, 1909. SEEING AT LAST.

The "Mercantile Gazette" is in the habit of discoursing weekly upon the money market with an air of wisdom and as though it really possessed some special knowledge of financial matters. To the "Gazette," at least that is what it would have ua believe, special stores of knowledge are available owing to the perfectly natural prescience with which it is blest, but about the surest way to arrive at the undoubtedly true conclusion that the "Gazette" is generally more or less incorrect in its comments on financial matters is to read its articles somewhat'constantly. 3ut the "Gazette" is to be congratulated, for judging by the latest issue it has discovered at last that the real cause of the stringency of the money market is most chiefly due to the fact that there- is insufficient capital in the country to develop it upon progressive lines. From the beginning of "the slump" the "Gazette" was never tired of howling about over-trading, inflated land values, reckless speculation and giving forth the other melancholy cries that are usually uttered in conjunction with those mentioned, but it had not then occurred to the sapient writer of the articjes in question that there was possibly another cause, and one far more effective than any other, viz., an absolute shortness of money, due, partially, to the rapid development of the country, and, secondly, to its being within the power of financial institutions outside of the Dominion to withdraw their money when it suited their purposes to do so. Financial critics, like all mortals, are prone~to error, and as an instance of their fallibility may be mentioned the opposition that was exhibited to the proposal to establish the Advances to Settlers Office. When that proposal was first mooted the then Premier, and the Leader of the Opposition both condemned it in

scathing terms. Experience has, however, shown how utterly absurd were both the criticisms and the fears expressed. Instead of ruining the country the Advances to Settlers Office has done an immensity of good. But to revert to the "Gazetted," it has discovered that "we want more capital in New Zealand," and it goes on to say:—"But we are not likely to get it merely because 'we want it; we must make the conditions attractive to the capitalist, we must offer him inducements to allow his capital to be invested in this country. He must not be penalised to please political erroups in the country, but must be encouraged; to ! have confidence in New Zealand." Our contemporary also truly remarks t na t : —"For years to come New Zealand will want large sums of money for development purposes, Jand that capital must be obtained mainly from outside. We have not enough capital now to meet current legitimate demands, and the difficulties of the future must be very much greater. One of the older economists rightly .estimated the benefits of adequate loanable credits, when he wrote: — 'ln every kingdom into which money begins to flow in greater abundance than formerly everything takes a new face; labour and industrv gain new life, the merchant bacomes more enterprising, the manufacturer mare diligent and skilful, and even the fanner follows his ploueh with greater alacrity and attention.'" It • is greatly to be hoped that the chief reason which the present financial stringency teaches will not be lost upon the people of the Dominion.'No doubt there are several ways by which the financial safety of the • country could be better protected, ' and it would seem that the day is not far off when the people will insist upon Parliament doing whatever is within its power to remedy an obvious evil, and one that is not past curing.