THOSE DEBTS.

Press, Volume LXI, Issue 18456, 10 August 1925, Page 10

THOSE DEBTS.

NATIONS' CAPACITY TO PAY. A PUZZLING PROBLEM. (WBITTEN TOR "THE FBESS.") (By HABTLEY WITHERS.) On the occasion of the opening of negotiations between the United States and Italy concerning the funding of the latter's debt to the former, it was announced that "capacity to pay" had been carefully considered by Italy, and that the basic principle, that debt payment should be limited on these lines, was put forward as recommending itself to the practical mentality of the American people. The acceptance and discnssion of this principle is said to a have occupied most of the attentions of the delegates of the two peoples at the first conference, and was hailed by ' 'The Times" correspondent as a "far cry from the uncompromising American insistence of a few years ago." Unfortunately the acceptance of this principle does not really take us very far towards a practical solution of the questions involved. In the first place, the principle merely states a truism, since it i 9 obvious that no nation can be made to pay more than is within its capacity. If it bo true that American opinion has moved a Jong way in order to arrive at the conclusion that no one can draw more than a pint' out of a pint pot, it is a good deal less alert than it is usually believed to be. In fact, American opinion probably did not concern itself very closely with the question of the amounts that America's European debtors would finally be able to pay. It had a sound and sensible prejudice in favour of the view that debts between nations ought to be observed as carefully as debts between man and man, but it would certainly have admitted that national, like individual debtors, have to be handled with consideration for the facts of the case; and if a debtor who owes 1000 dollars has assets worth 500 dollars, attempts to exact payment in full are unprofitable to both parties. . ,

No New Light. Recognition of this principle does not, therefore, throw a very large flood of new light on the broad issue involved, and as a help towards arriving at a practical figure it is still less illuminating, because when we have got it we are still a very long way from knowing what is the capacity of any people to make payments. We all remember with how much hope and enthusiasm the appointment of the Dawes Commission was received, because it was expected that from its labours the world would at last be enlightened as to the real facts concerning Germany's capacity to pay reparations. The Commission, did work that will entitle it and its efforts to an honourable place in history. But we do not yet know how much Germany is going to pay to her creditors; and when that is known there will certainly be plenty of people Who will argue from the fact that she has paid so much she could, and ought to, have paid more. Even the actual physical facts of a people's capacity to pay, are only capable of measurement within IMits that leave plenty of room for error. By means of a census of production, carried out with scientific thoroughness that is rarely applied to such investigations, it might be possible to know the value of the total productions of goods and-ser-vices of any country in a stated period previous to the enquiry.

Unsuspected Resources. But even when we have got thus far, there is still plenty of room for doubt as to how far this production might be increased by better organisation and more scientific methods. As was shown at the time of the war, all the countries involved had reserves of productive power such, as had never been suspected, and only came into practical use because a great national emergency discovered their existence. To U9e his lawn tennis court for feeding* his family with a potato crop did not occur to the average middle-class Briton of 1913 as an economic proposition to be seriously considered. In 1917 he was doing it. *

Capacity to produce, thus depends not only, on the physical and material plant at the disposal of a people, which-can be measured with some approach -to accuracy, bjit also on . the quite imponderable question of the extent to which it it?' prepared to make use of it. ■. The tennis cflurt'is there, visible. But no one can gueßs. how much patriotic or other pressure is required before its owner will set about digging it up and planting it with potatoes.

The Psychological Aspect. And from capacity to produce it is a long step to capacity to pay; for the latter implies that part of the production is to-be used for the benefit not of the producer, but of some other party —a creditor or a tax-gatherer: and. so we come to the still more unanswerable question of the point at which the eneTgy of production will be checked' by the thought, that so much of each man's work will be devoted to somebody else's benefit.

In these psychological matters each nation can only guesses from its own experience; and there is no donbt that we in England, at the time when income-tax and super-tax were at their maximum, were checked in our readiness to work and to take economic risks toy the thought that something like half the reward of effort would go into the maw of the tax-collector. As long as the war lasted, this feeling had little, of any, effect; afterwards, it was certainly a factor to be reckoned with

I All these uncertainties have to be cleared up before we can know the facts about the power of a people to make payments to its own Government; and when the question is still further expanded by trying to reckon its power to make payments abroad, a new set of complications arises. One of the most important services rendered by the Dawes Commission was the emphasis that it laid on a fact—recognised by economists and business men, but obscure to the general public—that a people* can only transfer money across its frontiers by means of an excess of exports, using the word exports in its widest sense. With regard to Germany the Saves Commission left this problem to be settled in the light of experience. It decided how much could be collected in Germany towards Separation payments, but left the amount to {be transferred to the Allies to be settled by the exchange value of the mark, payments being limited to the amount of marks that can be sold abroad without breaking their price.

FROZEN MEAT. (XT CABLE—F&KSB ASSOCIATION—COPTWOHT.) (AUSTRALIAN A3D K.Z. CABLE ASSOCIATION.) (Received August 9th, 5.5 p.m.) LONDON, August & ' Frozen meat—Canterbury mutton, light 7|d per lb; Canterbury lambs, light Hid, heavy Bjd, eeoonds Hid; others, selected*, light llfd; North Island, firsts lid. No Argentine is offering.. . Frozen beef—New Zealand • fores, 4d per lb, hinds sjd; Australian, fores 3|d, hinds fi|d. No Argentina or Uruguayan is offering. Chilled beef— Argentines,fores 4|d per Jb, hinds 7Jd; fores 4Jd, hinda 6jd. Other meats are unchanged.

CHRISTCHURCH STOCK EXCHANGE. SATURDAY'S TRANSACTIONS. Salca reported—Commercial Bank of Aust#alia • (ord., ex dir.),' 31s; Royal Bank, 36a 6d (two parcel); "Wellington Woollen (ord.), £6 12s 6d; Electro. Zino (pref., cum div.), 31s 6d.

OTHER EXCHANGES. (PBESS ASSOCIATION TXLZOBAKS.) ' AUCKLAND, August 8. Sales—New Zealand Insurance, 84a 9d; Union Oil, 40s; Wilson's Cement, 33s 3d.

FROZEN MEAT.

LONDON MARKETS. (BT CABLE —PBESS ASBOCIATIOE—COPYRIGHT.) (AUBt&ALUN ASD U.S. CABLE ASSOCIATION*) (Received August 9th, 5.5 p.m.) LONDON, August 8 Cotton—The Liverpool quotation for American middling upland, September delivery is 12.84 d per lb. i Rubber—Fine hard Para, 48d ner lbplantation, first latex crepe, 43 Jd to 444' smoked ribbed sheet, 43fcd to 44Jd. ' Jnte—lndian native first marks, August shipment. 448 per ton. Heinp—New Zealand . July-Augast shipment, £3B per ton. Copra—Bagged, South Sea, July-August ahipment, £29 7s 6d per ton. ■, Linseed Oil—£43 per ton, equal to Se Bid per gallon. Turpentine —67s 3d per cwt, equal to 5s Id per . gallon. Antimony—English, £75 to £BS per tonforeign, £65 6s. '

SMITHFIELD PRICES. The New Zealand Meat Producers' Board has received the following cablegram from its London office, dated August 7th, 1925, advising that SmitMeld delivered prices at that date vere (prices for the two previous weeks are also ehown): 7-8- 31-7- 24-7-'25. '25. '25. d. d. d.

NEW COMPANIES. The "Mercantile Gazette" records the following new registrations: Wioletta, Limited. Registered as a private company July 3/th, 1926. Office: Liverpool Chambers, Hereford street, Christchurch. Capital, J2500 into shares of £1 each. Subscribers: Christchurch—F. G. Dunn, J. M. Stewart, A. Chid gey, F. E. Graham, F. jo. Harman, G-. D. Macfarlane, L. Hansen, H. H. Knight, H. J. Beadle and H. F. Whittingham each 25, and Catherine Gill 250. Objects: To purchase or otherwise acquire the right and interest of Catherine Gill in hair tonic and hair dye, face cream and cough mixture, manufactured by her with patent rights and exclusive right to 'use of name "Wioletta," and to carry on business of manufacturers of cosmetics and other compounds, etc. D. Taylor and Co., Ltd. Eegistered as a private company July 31st, 1925. Office: High Btreet, Southbridge. Capital: £2OOO into 2000 shares of £1 each. Subscribers: Southbridge—D. Taylor 1999 and EcLna> M. Taylor 1. Objects: To acquire and take over as a going concern and to carry on thb business af general merchants • andi general agents, lately carried on at Soutlibridge by D. Taylor.

P. AND 0. BANKING CORPORATION.

The diiectors' report of the P. and O. Banking Corporation, Ltd., Btates that the net profits for ths year, atter providing for taxation, bad and doubtful debts, and valuing investments at or below market rates, amount to £130,214 18 s iOd, which, with £17,567 9s lid brought {or*ward from last year, gives an available balance for disposal of fi53,782 8s 9d. Tho directors have written £SOOO off the premises account and have placed to reserve the sunn of £25,000, thus bringing the reserve up to £160,000. Out of the balance of £123,78'.! 8s Sd, they propose to pay a dividend of 5 per cent., les3 income tax Ht 33 7id, absorbing £106,198 8a 6d; carrying forward £17,5&1 0b 8d to the next acoount. In .recommending the reduction of J per. cent, in the dividend froni laet year ard increasing the amount carried to reserve and providing £SOOO to reduction of premises, the directors are _ influenced by the uncertain oondition of affairs in the Far Eaat. The directors have to report the retirement on June 3rd, 1925. of Mr H. J. Bolt from the post of eecretary, and the appointment of Mr C. Selbie in his stead.

CITY PROPERTY SALE. A sale has been effected of an important block of city property in Worcester street, formerly known as Maying's Buildings, and owned for the paet 20 years by the Government Life Insurance Department. The freehold of tho property haa now been acquired by Fletcher, Humphreys and Co., Ltd.

LATEST QUOTATIONS. Buyers. Seller*. £ 8 c £ e a N.Z. GOVT. DEBENTURES— 4J per cent. Inscribed, 1938 and 1939 97 0 0 — 5 per cent. Inscribed, 1927 98 0 0 —• 5 per cent. Bonds, 1927 98 5 0 99 0 0 5J per cent. Inscribed 1933 101 2 6 101 5 0 Si per cent. Bonds, 1933 101 2 S 101 7 6 OTHER DEBENTURESN.Z. Breweries, Bonds 1 2 6~ 1 3 6 Weetpart-Stockton, 6J 90 0 per cent. .. . "— 0 Westport-Stockton, • 8 per cent. .. .. . — 1G1 0 0 BANKS— Adelaide — 9 0 0 Australasia — 14 11 6 Bank of Victoria ... — 7 8 6 Comm. of A ust. (ex dir.) 1 10 9 1 11 3 Comm. of Sydney — 24 2 6 Natrona] of Australasia (f 10 paid) — 17 0 0 National of Australasia (£5 paid) — 8 9 0 National of N.Z. — 6 14 0 New South Wales 41 0 0 — Now Zealand .. ■2 36 0 — Royal (£1 paid) 1 18 3 1 17 0 Union of Auet. 14 8 6 14 11 6 INSURANCE— National .. .. 3 13 G 3 15 9 New Zealand .. — 1 15 0 LOAN AND AGENCY— Goldsbrough, llort 2 4 10 2 5 2 Goldsbrough, Mort (rights) 0 8 9 0 8 11 National Mortgage 3 U 0 — SHIPPING— Howard, Smith .. 1 14 3 — Huddart-Parker ■— 2 6 0 P. and 0. Deferred 260 0 0 270 0 0 FROZEN MEAT— N:Z. Refrig. (paid) .. 0 17 6 — N.Z. Refrig. (contr.) .. 0 8 10 0 9 3 WOOLLENS— Wellington (ord.) .« G 10 0 — GAS— Chfistchurch 7 11 G — SREWERIES— Crown 116 1 9 6 Manning — 2 0 0 New Zealand .. 1 18 3 1 19 6 Ward 2 19 3 — CEMENTS— . Wilson's .. .. 1 13 0 1 13 9 MISCELLANEOUS— Beath and Co. 133 G — Beath,. Schiess 0,68 0 9 0 British Tcbacco — 2 4 6 Dominion Rubber — 2 10 0 Eclipse Petrol (£1 pd.) — 1 0 0 Electro. Zinc (prcf. cum) 1 11 0 1 11 9 Electro. Zinc (derf. ord. oum div.) 19 6 — Henry Jo nee Co-op. .. 2 2 0 2 4 0 Hume Pipe 0 19 0 1 0 6 Mason, Struthers (£1 .. .. — 1 4 0 Mason, Struthers (10s paid) — 0 12 0 N.Z. Drug Co. 3 5 9 3 6 3 N.Z. Farmers' Co-op. (£2 15s paid) N.Z. Farmers' Co-op., — 0 13 6 (First Preference) 3 10 0 3 15 0 N.Z. Farmers' Co-op. (GJ pier cent. Stock, 1930) 88 0 0 92 0 0 N.Z. Farmers' Co-op. (Gi per cent. Stock, 1335) 83 0 0 — N.Z. Guarantee Corpn. 0 9 6 — N.Z. Malay Rubber .. } 5 0 — N.Z. Paper Mills ; — 1 1 o N.Z. of Milk .. 10 0 — Wbiteom.be and Tombs 3 11 6 — MINING— BUckwater, (cum div.) 0 7 6 — Kawarau — 0 15 6 Mt. Lyell .. 1 1 J1 1 2 3 St. Bathans 0 13 0 prem.

EXPORT FROM NEW ZEALAND. The New Zealand Heat Producers' Board reports the following shipments of frozen meat, from New Zealand:— Beef. Mutton. Lamb. Qrs. - C'cs. C'os. 1924— • Not. — 9,804 107,925 19,716 London Nov.'.. 3,706 2,456 7,478 W.C.U.K. Dec. .. 11,676 142,056 204,746 London Dec. ... 25,256 — — Genoa 1925— • Jan. - « 7,480 108,173 880,326 London Feb. .. 6,745 .216,189 473,227 London Feb. .. 5,932 73,924 231,367 W.C.U.K. Feb. 5,199 ' — — Hamburg ' March 27,898 209,102 373,425 London March 4,133 , — — Hamburg April ' 26,035 159,456 617,518 London April 14,364 49,277 205,070 W.C.U.K. April 3,106 — — Hamburg . May .. 19,487 198,146 837,769 London May •« 10,359 6,114 67,820 W.C.U.K. May .. 47,324 — — Genoa June .. 3,312 99,134 357,462 London June.. 80,345 41,897 121,141 W.C.U.K. Julv 1-15 5,093 52,055 72,963 London July 1-15 1,855 4,783 90,926 W.C.U.K. Total to 117,4301,292 236 3,337,152 London July 15, 66,561 177,901 723,802 W.C.U.K. 1925 72,580 — — Genoa ' 12,438 — — ■ Hamburg Total to 174,893 1,116,909 3,664,027 London July 15, 27,486 92,511 558,815 W.C.U.K. 1924 — — — Genoa 6,926 — — Hamburg Killings at all works during the 1924-25 season to July 15th were (the figures for the corresponding period of the 1923-24 season being shown in parentheses):— . NORTH ISLAND. Beef (quarters) .. 450,402 (306,630) Wether mutton (c'cs.) * 1,122,535 (854,143) Ewe mutton (c'cs.) .. 673,033 (625,237) Lamb (c'cs.) .. 2,039,020 (2,103,434) Pork (c'cs.) .. 35,272 (4,943) Boneless beef (frt. c'os.) . 197.671 (196,597) Sundries (frt. c'cs.) .. 48,478 (63,915) SOUTH ISLAND. Beef (quarters) .. 13,689 (1,608) Wether mutton (c'cs.) 149,927 (133,539 Ewe mutton (c'cs.) .. 285,577 (277,827) Lamb (c'cs.) .. 2,704,168 (2,658,826) Pork (c'os.) .. 467 ( —) Boneless beef (frt. c'cs.) 58,239 (42,155 Sundries (frt. c'cs.) .. 10,962 (16,517) Stocks on hand in New Zealand at July loth,'1925, and July 15th, 1924, were:— NORTH ISLAND. Besi (quarters) .. 225,337 (103,157) Wether mutton (c'cs.) 331,312 (242,166) Ewe mutton (c'cs.) .. 251,122 (272,808) Lamb (c'cs.) .. 119,114 (157,563) Pork (c'cs) .. 5,533 (277) Boneless beef (frt. c'cs.) 62,092 (73,943) Sundries (frt. c'os.) .. 26,001 (29,596) SOUTH ISLAND. Beef (quarters) .. 10,240 (1,248) Wether mutton (e'cs.) 68,883 (35,708) Ewe mutton (c'cs) .. 188,944 (167,885) Lamb (c'cs.) .. 490,393 (331,903) Pork (c'cs) .. 454 (25) Boneless beef (frt. c'cs.) 37,524 (15,498) Sundries (frt. c'os.) .. 4,456 (6,891) Stcoks of frozen meat loaded into eteam^re sot departed from New Zealand' as at the same dates were:— Beef (quarters) .. 3,912 (277) Wether mutton (c'cs.) 21,214 (6,935) Ewe mutton (c'cs.) .. 17,769 (22,57b) Lamb (c'cs) 101,316 (145,054)

X.z. Wethers and Maidens— Canterbury quality, selected brands— Blunder 7§ 71 73 57-64 .. 71 'i 7 GS-72 •• 7 7 7 Other brandft^-56-under • 71 71 71 57-6t .. c i CJ 65 65-72 •• Gi 6g N.Z. Ev.es— 64-rndcr °i 55 51 N.Z. I<aml>—Canterbury quality: 3G-under i.. iii lis 37-42 .. 30J 101 102 43-30 .. 9i 9J 10 Seconds Hi 113 Hi Selected brands— 36-under Hi iii 113 37-42 101 101 10] Other brands — First quality, 42-under IT. Hi Hi Seconds 111 111 111 N.Z. BeefOx fores 31 31 Ox hinds S3 SV 51 Cow fores 3 2J 22 Cow hi nds 4J 42 41 Argentine Chilled Beef— Ox fores .. .. 4? 41 3i Ox hinds 72 74 7J Argentine Frozen Beef— Ox fores — 3} 3J Ox hinds *. — 61 6 Frozen Pork — 80-120lb 81 y— 8 120-lf-Olb 8J 8i Si Frozen Veal Not quoted.