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Progress, Volume XVI, Issue 9, 1 May 1921, Page 197

Financial Short Sail. .-:■.' ■■■- If there had been any dissatisfaction among business people and others regarding the conservative attitude of the banks during the early part of.-the. year, everyone must now feel that this policy was wise, in view of the remarkable disclosures of the": banking returns' for the March quarter.. We need not recapitulate the position, which has been so thoroughly discussed in the daily press, but only remind our readers of the fact that, owing to causes which we have previously discussed, there was a strong demand for credit, and the banks, which a year ago had an excess of deposits : over advances of the record total of 8,623,0:09, completely • reversed i this position during the year, and ended the March quarter with an excess of advances over deposits of 290,610. The Bank of New Zealand seems to have, taken the largest share of this heavy load of credit, and this ( institution is entitled to praise for its efforts to meet the exceptional position.. In the ordinary way, the volume of exports leaving the country this season would have quickly righted the balance, but it is useless hiding the fact that we seem only on the fringe of the financial trouble, for the only export in which good values are maintained is dairy produce. This ; industry is doing for New Zealand what the wheat industry has done for Australia--it is saving the country from financial disaster. There has been some criticism of the Bank of New Zealand in past years for the large amount of capital it carries in London, where there are better opportunities of investment at short call an in New Zealand. This big floating investment of funds in London by the Bank of New Zealand evidently played an important part in getting over the time of stress due to over-import-ing. If New Zealand gets one-fifth of its former annual income from the current wool clip, it will Apparently be fortunate. But 'such a position means a great gap in the national income, and its effect will be widely distributed. Though the position calls for care, there is certainly no need for panic J n such a fine country as New Zealand, with so energetic a working population. Specula-

tion in land will cease, and some of the overgreedy people who have used all their boom income to bring further areas within their grasp, are feeling the pinch worse than any other class in the community. There will not be much sympathy for them.

The "New Zealand Year Book." After surviving throughout the war period, when paper was almost unprocurable, the " New Zealand Year Book has begun to show signs of distress: It comes out this year with 400 pages, scarcely half its usual size. . Had such a severe cut been made during the war period, it could have been understood, but it seems the veriest nonsense, when supplies of paper ! are improving and the price is easing, to make such an official exhibition of economy upon a publication of- the national importance of the " Year Book. The Dominion is poorly advertised throughout the Empire, and the only comprehensive medium of information available to persons outside the country is this ■ particular publication. New Zealand has remarkable natural advantages, and it is blessed with a population of sound common-sense and some . capacity for initiative in Governmental affairs. Therefore' its progress is watched by an important, if limited, circle, of political students throughout the world, and they must take the Year Book as their guide to the position of the Dominion from time to time. The facts given in the Year Book are turned to good account.in newspaper and magazine articles having a circulation in many parts of the world, thus the " Year Book " may be regarded as a reservoir of publicity, which, if kept well filled, will send out streams of knowledge to the advantage of New Zealand. We hope that the Minister of Internal Affairs, the Hon. W- Downie Stewart—himself a student of affairs who will appreciate the point of view we have put forward—will frown on any attempt to reduce the "Year Book "and that he will encourage its development on wise lines. The publication should ■ be utilised, not ; only for presentation of national statistics and information relating to local and. general government, ; .but it

could well include more special articles on New Zealand subjects, some of which are now written only to be embalmed in the transactions of scientific bodies whose books circulate within a very limited range.

Our Secondary Industries.

It is through the medium of the attenuated “ Year Book ” that we are able to make a survey of the recent progress of New Zealand’s secondary industries. The Dominion exports enormous quantities of raw material, and has to buy much of it back in finished form, with double freight and many other expenses added. Although trade, to be well based, must be well balanced, there is no need to do so much importing of finished goods, when we have potential power in our hydro-electric resources and the raw materials on the spot. The country’s secondary industries are making some progress, and we are glad to see that this is most noticeable in connection with those utilising New Zealand’s staple products. Woollen mills, for instance, have nearly trebled the value of their product since the 1910-11 period. The demand for clothing for the troops gave this industry a good stimulus, which was shown to great extent in the figures of the 1915-16 enumeration, indicating an increase in output value of 89.9'per cent. The latest figures, those for 1918-19, show that the woollen mills have again improved their output value to the extent of 33.3 per cent. They have reached a point at which their capacity to absorb the New Zealand wool clip is of real value to the New Zealand farmer. During the 1918-19 period the local mills purchased from the New Zealand growers 6,720,297 lbs. of wool. Of this total, more than half was crossbred, which is so difficult to sell in the world’s markets to-day; less than one-third crossbred, and slightly less than one-fifth Merino. An allied industry, the making of clothing, showed a spurt of 65 per cent, in its output, which is now worth nearly one and a-half millions sterling per annum. Tanning, felling and woolscouring turned out products valued at £3,662,000, an improvement on the 1915-16 period equal to 32.9 per cent.; and boot and shoe-making looks flourishing and progressive with an output worth £1,199,000, an increase of 49.7 per cent. Taking the whole of our industries, they show an improvement of 27.2 per cent, in value of output, so that we are getting on slowly. The provision of cheap electrical poweras can be already seen in the neighbourhood of Christchurchwill be a boon to the secondary industries, and it also looks as if former troubles of shortage of labour will soon be overcome.

"Architectural Politics." We commend to the attention of our readers who are architects, the letter of the Secretary of the Institute of New Zealand Architects on the subject of publicity. Mr. Beauchamp-Platts asks for the co-operation of members of the Institute in dealing,

in these columns, with what he calls publicity in relation to architectural politics. If the necessary co-operation is provided by architects all over the Dominion, it will be valuable to the profession, but if there is apathy, the scheme will be left to a few enthusiasts, and then the apathetic will probably criticise the narrow range of interest shown in the special section. Our own experience of the architects of the Dominion is, we are glad to state, a happy one. When there have been matters of importance to the profession to be dealt with in these columns, and the views of architects are asked for, we have readily secured their help. Only by exchange of views can a sound opinion on professional questions be moulded, and it will give added strength to its expression if it is backed by the support of architects over a wide range of the country. There can then be no suggestion of clique-made politics. We believe that the new section will add to the value of this journal as a medium: of interest to those concerned in the building industry, and we shall be encouraged to more enterprise in catering for the wider circle of readers promised as a result of the operation of the scheme. Publicity, as Mr. Beauchamp-Platts points out, costs money—paper and ink, and other materials used were never dearer—yet publicity was never more valuable. The greater support given to this journal the better its opportunities of covering effectively the subjects of interest to its readers. We hope our architect friends will see in the proposal of the Institute something of mutual benefit, and that the scheme will be well backed once it is launched.

Housing Policy. We are interested in observing that the Garden Cities and Town Planning Magazine is strongly advocating a new housing policy for, Great Britain. So much has x been heard of the comprehensive plansall the things which were proposedand so little of actual results, that it is not a whit surprising to discover some impatience, and a desire to have another system. Is it not the same in New Zealand? We also have planned on a large scale; Ministerial announcements of great vigour and optimism have been madeand the Government as a whole has then put on the brake. It could not live up to its professions when it contemplated the bills to be paid. Nor can we altogether blame them when we realise how poor was the value for the money expended. Inflated prices of materials, and a constantly rising expenditure on labour due to the increasing cost of living, resulted in a sovereign of expenditure producing less than half the pre-war value in actual building. Our English contemporary declares that the Government's policy is proving itself to be unworkable, and something will have to be devised to replace it. . This criticism is ably followed up in another part of the magazine, where building costs are reckoned up, and a situation revealed'which has : a remarkable parallel in this country. ~ f ■ ■