CHEAP MONEY.

Auckland Star, Volume LXVI, Issue 230, 28 September 1935, Page 10

CHEAP MONEY.

ENGLAND'S ADVANCE.

PROSPEROUS CONDITIONS.

SIR H. BEAUCHAMP RETURNS. Returning by the linei* Remuera from a six months' visit to England this morning, Sir Harold Beauchanip, a director of the Bank of New Zealand, said that in his memory England had never been in a better financial position. If the danger of war could be averted a long period of cheap money could be looked forward to in the Old Country. Since his last visit Home in 1932 England, he said, had made a marvellous advance in general economic conditions. To-day there was no direct evidence of poverty to bo anywhere. A great revival in industry might absorb some of the money that was available, but it seemed at present that there was chetfp money to be had in abundance. When he was in London Treasury bills were being discounted with a benefit to the investor of only 12/ to 12/6 per annum. Overnight and weekly Jixtures were getting about the same result, and even at those low rates it was difficult to get brokers and other agents to take them.

Great difficulty was being experienced by manufacturers in getting skilled labour, said Sir Harold. That was due to the lack of training in technical subjects for the youth of England, and the large number of young people who had done no work since they left school — "Waiting patiently," as lie described it, "until they were 21 and were qualified to receive the dole."

Budget "Satisfactory." Referring to the New Zealand Budget I Sir Harold said tliat he regarded it as "exceedingly satisfactory." There was, however, with the exchange rate at £24 10/ per cent, a contingent liability 011 the Government owing to the accumulation of funds in England. The Government's hope lay in an increase of imports from Australia and Great Britain to reduce that accumulation. The position with regard to New Zealand butter was more hopeful, he said. It was being wonderfully well advertised, and, wherever he went all over England he heard the highest praise of it. There was a certain class who said that they preferred the taste of Danish butter, but generally he thought that the position was hopeful. There was one point that was mentioned to him by the Lyons restaurant people, and that was that New Zealand butter had to be mixed with other butter in order to make it easier to spread on bread. Cheese Not Wanted. There was no real improvement in the position as regards cheese and in Sir Harold's opinion the low price was the only thing that was maintaining it on the market. In 1929 lie had advised that New Zealand should get an independent expert to investigate the question with the object of improving the quality of Dominion cheese, but the position had been regarded as satisfactory. The fault still remained; and he had been told even by a small storekeeper in Aberfeldy in Scotland that he had stopped stocking New Zealand cheese because the public did not want it. In contrast, South African cheese was gaining ground. It was a serious position when it was remembered that the Dominion exported 130,000 tons a year.

Sir Harold will remain in Auckland until Wednesday when he will return to Wellington. He has been over 37 years a member of the directorate of the Bank of New Zealand and was for 15 years chairman of directors.