POSITION OF NEW ZEALAND.

Ashburton Guardian, Volume XXIX, Issue 7609, 5 October 1908, Page 1

POSITION OF NEW ZEALAND.

AN AUSTRALIAN OPINION

After a run of almost unexampled prosperity (says the Sydney Morning Herald editorially) New Zealand will probably experience no little discomfort in accommodating herself to the comparatively straitened circumstances in which she now unfortunately finds herself. When any country arrives at the stage of 'having to get more out of its local banks than its people put into those banks in the shape of deposits, it cannot be said to be in a very healthy condition. And this, as has been shown jn our financial columns, is the case with the dominion now, tihe banks haying advanced upwards of £1,000,000 in excess of the deposits held, and as this apparently represents about the limit, there must be an all-round slowing down of the pace. New Zealand, however, is only suffering from the recoil /which seems to be the Nemesis of unusual prosperity in every country. That) it was staved off for so long in the dominion's case was due to a singular succession of fortuitous circumstances. The fat times began with the South African war, when the country was able to take the fullest advantage of the abnormal demand for fodder, and also for meats. The war was followed by the Australian drought, during which large quantities of New Zealand produce found a market here at extremely remunerative prices. Under ordinary circumstances a reboupd might have been anticipated that extraordinary demand was satisfied. But fortune again favoured New Zealand, and this time along with Australia, for the world's demands suddenly began to strengthen, and prices for tJhe staples avo had to sell touched levels such as had not been reached for over half a century. But although New Zealand parties pated equally' with the Commonwealth in the high prices which were receivable up to the time of the general pol^ lapse,'and although she JVad. the accumulations to her credit of the profitable years before, when the Commonweak'h was prostrate, t*he turn of the tide is obviously affecting her adversely more quickly and seriously than it does this country. This is strikingly apparent, even if we confine the comparison to this State, and apply the same banking test. At first sight it may peem a little hard to understand why t)his should be so. Although New Zealand is hit severely by the fall in. wool —wool being with her, as with us, the principal staple—her butter, mutton and lamb, two great items of export, have not fallen very much in price, notwithstanding the world depression, bo that really New Zealand should not be in so bad a way as her banking position may suggest. Nor is she. What is actually the matter is an artificial deadlock resulting from the inflation of land values. The 'wave, of prosperity carried telling values very much beyond the permanent producing values, and the extraordinary prices for wool a.nd *?o>ne other commodities have receded; those who bought land on the basis of the greater return are left financially to readjust. Another factor in the great rise in dominion land values which should, however, be mentioned, was the presence in the market of the Government as a largo buyer for subdivision purposes. Several millions of pounds ot good money was expended on land purchases, until the process became so expensive that it had to be discontinued. In New South Wales much the ganto influences have hee|i, a^cl, in admeasure, still are, operative', and with a not dissimilar effect. Only in a few of our rural districts are we entitled to gay that values hn.VP reaped a point beyond which it is not safe for them to so; but we know that the way the value of country lands generally has advanced within the past three years or so is netcuijsiiing. Broadly speaking, when country lands are marketable at prices beyond what they can be made to earn, trouble is not far off.

Although we hold that it would further the- solution of.the motor problem if the speed-limit were reduced in given areas, we should recommend that outside those areas it should be abolished altogether. The end to aim at is not a particular rate of speed, but considerate and careful driving, says the London Spectator. •■■'•■■.

There is matter for profitable study in the comparison between the German conservation of her forest resources and the neglect of this factor in national wealth by Great Britain. If British forest management were as successful as German, our three million acres of woodland should return an annual profit of a round million, 1 or 6s 8d an acre. —Scotsman. „.',...

Much cycling injures the heart. A large percentage, of French recruits, all expert wheelmen, have just been declared unfit for military duty on account of morbid changes of the heart nniscle.

Roughly speaking, there are- 5000 acres under the'control of the London County Council for the purpose of public recreation. These figures represem 110 parks, disused churchyards, and open spaces, and, excluding the expenditure on bands and boating, the annual cost of their management is somewhere about £115,000. It takes a staff of between &00 andv9oo men to keep them in aj condition of excellence. The music provided in the parks by some sixty bands costs £12,000 a year.

The sooner we dismiss ihe idea thai Japan may possibly be "a hewer of wood and a drawer of water" for Western nations the better. There coul^ be no greater illusion. It may startle stay-at-homesl to. realise that th< Japanese- regard -themselves as th« equal of any Western nation, observe; the National Review.

At the Auckland, Police Con.-t re cently, the presiding Justice put in i demurrer. A case of some gravity wascalled, involving the probabilities of i nice and legal discrimination. ' 1 don't consider such a case should come before a bench of Justices," said the president. "It makes me feel Inclined to strike. 'We are the great unpaid. We get nothing for our servi.-e3. anc I don't see why we should be tail»'. upon to hear cases that aie undoubt edly work for a Magistrate." Detective Marsack expressed his agreeiaeui with the Justice's remarks, -idai.it that the police had no choice but v bring the cases on before the Tus:be.< or abandon their prosecution together. At the conclusion of the caw the presiding Justice again said thai it was high time another Mag:*i.a.< was appointed. "It is unfair to a.«i Justices to decide upon points of J.iw,' he sa.id, '■'■ They may be men of deai judgment and good intelligence, but it requires a trained , mind to dec: I-.? oj such questions a.s hayp Just ocen i >i to us," ,

A Maori sheep farmer in the nortl owns or leases 28,000 acres «n the Cain Palliser Peninsula, and although i\< land is very rough,' and niaen on i quite unsuited for any. really inicti cal purpose, he know vuniiirijf on i', something like 20,000 ?,he<>p and 801 head of cattle. lie- etn!>li3 rs ulcua dozen Maoris and pakehas on pi; property, and has been very suc"»Mifu in the marketing of his wool ami Ho duce.

T]ic Queensland Minister of land states that he has concluded an ai rangement with a "syndicate \vhbh i exploiting a patent taken 01H :» Eug land for extracting alcohol from grcer trees for industrial' purposes. Th< company ia taking -.400 miles oi th* coast liny, beginning from Caiiuoltuiv Two" of the directors,. Drs.E. VV. Ban! and Black, had informed him tha; when thov returned' they won'! pt> bably make a proposal ■ regifciiii'? th. extraction of alcohol'from pnokly pear as they found that, the peart xili p'O duce alcohol so economically timi i+ would enter the market as fuel foi motor-power. If the project is success ful it will be of much importance tc Queensland.

In the Auckland district the effeci of the- proposed dairy regulations is already seen, says _ an Auckland paper. In anticipation, as it yere farmers have commenced a new method of milk production—making it t cleanly, interesting occupation. All over the district- thb desire Is to' conduct the business oh more commonsense methods, and th© inspectors arc mooting'with a mps.t encouraging reception.

An Adelaide man, who made a cheap grand stand for himself at a suburban' football match by standing up in his buggy and looking over the fence, was fined os and £2 6s costs by the Idea] Bench. The offence was not moving on when requested, by a constable to do so, and tho outraged lover of sport took the case to the Supreme Court. But the Court decided that the proceeding was "valid and- reasonable," and tho economist, now'perceives that it would have been cheaper, to take a season ticket.

"The labour- market was never so full aif at the present time/ said Mr Mair, Engineer to tho Rangitikei Coun.ty Council, at tho Arbitration Convt," Men have come to me in the country recently, absolutely stumped, and asking for work at chopping wood or anything else." Mr Knigge, Town Clerk at Mar-tain; said that they had during the last few months been giving charitable T aid to ablebodied men, Mr Reardon : "But haven't you seen' the' Government's advertisements to labourers ?" "Oh, that's only oil paper.'"