WELLINGTON COMMENT.

Auckland Star, Volume 55, Issue 158, 5 July 1924, Page 11

WELLINGTON COMMENT.

"FAKED" FOOTWEAR. (From Our Special Correspondent.) WELLINGTON, Friday. Since the close of the war we have become familiar with "faked" footwear. Composition soles, leather dust, sheepskin uppers and cardboard soles have been brought to light in different parts of the country and it is only right to say that these "faked" boots and shoes have been imported, and not dumped on the market by New Zealand manufacturers. Two or three years ago there was a scarcity of leather, as there was a tremendous demand for all classes of leather, the automobile manufacturers taking heavy supplies. The supply, however, by degrees overtook the demand. Freezer hides were available in the Argentine in increasing numbers, in fact every country that could furnish hides did so. Now the hide market is depressed. Giving evidence before a Royal Commission in Victoria, a prominent tanner stated that there was enough leather in Victoria to meet the requirements of the whole of Australia for the next two years. Within the past few weeks a contract has been placed with Queensland freezing companies to eupply the Mediterranean Fleet with canned beef, and the slaughter of cattle in that State in consequence is much larger than usual. America is the greatest leather producing country in the world, but the position is so serious that some big tanneries have had to close down. One hide buyer in Wellington recently sent about 200 hides, half to Melbourne and half to Sydney, and the result was a total loss of over £50. The hide market is depressed the world over, and at the sales held in Wellington last week there was a further drop in values. Sheepskins were, also lower in sympathy with, the easier tone* of the wool market. The Farmer and his Banker. The Hon. A. D. McLeod, Minister of Lands, prior to his elevation to Cabinet rank, wrote a letter to the "Dominion" in reply to one which appeared in that journal from the pen of Captain Colbeck. In" the course of* this letter Mr. McLeod says: "The strength of the associated banks is the fear of competition between themselves for the money available. That they are becoming a menace to our future development as a country ia feared—not without reason—by the primary producers, and the cure is not going to be established by a few farmers —however well intentioned —sitting round a table for a few hours." It would be interesting to learn just exactly what Mr. McLeod means by the statement that the banks are becoming a menace to the future development of the country. It is to be feared that Mr. McLeod, like a good many oilier people, possesses a wrong conception of the functions of our joint-stock banks. It must not be overlooked that the banks borrow from, as well as lend to, the public, and the banks have to study the interests of those from whom they borrow quite as much, if not more so, as the interests of their debtors. It seems to be the current. belief that the banks should advance on land values, optimistic and war-created values, which are the source of the present day troubles of farmers. This is not only a very foolish but also a mistaken idea. The actual capital owned by the banks is comparatively small. They borrow money from the public by way of and free deposits, and this money or credit they advance to those in need of same. It must be obvious to the poorest intelligence that the banks must exercise the greatest care in the way they make advances. Money cannot be lent out indiscriminately nor can any class of security be accepted. The "banks are liable to be called upon by depositors at any time to refund deposits and they must always be ready to do so. No bank can afford to lock up money in fixed securities such as land, but on occasions the banks do make advances against land. It is difficult to see in , what way the banks are a menace to the future development of the Dominion as Mr. McLeod insinuates. The Wool Market. The fall in the price of wool at the London sales was not unexpected by brokers who are, however, not disturbed [; by the fact. They contend that the t i statistical position of wool is sound, that - ; is to say the demand exceeds the supply, J i but the demand is at present held in , i check by the inability of Continental •! buyers to finance their wool require- ! J ments. This is particularly the ca6e ' j with Germany, who is a large' user of , wool. Furthermore it is held that the prices at the sales held in Australia and New Zealand were forced beyond legitimate bounds through the competition of speculators who are now suffering for , their actions. The bulk of the wool , now being offered in London belongs to speculators. Before next wool selling season begins the trade will have had time to digest stocks and probably Continental finance will be in a more healthy condition.