FINANCE AND COMMERCE.

Press, Volume LXV, Issue 19735, 27 September 1929, Page 12

FINANCE AND COMMERCE.

BRITISH INDUSTRY. fO BE BELIEVED OF GREAT BURDEN. (M#cdiro<t S*?pt©!nbt?r £oth, 5.5 p.m.) RUGBY, September 25. On Tuesday the rating reform acherne of the late Conservative Government come into full operation, i»nd, from that date, British industry will '»of thrc^-fi>ll rths its burdt n rutes, which it has hitlu-rto Although stance itln-ady Ix-en urn""" to agriculture and to certain of * h*- heavier trade*, industry 1 a whole h>i« ,tet to receive the benefit of the greater part of the irlwrte, for the purpose* of which a aunt estimated ;<t Mime yearly is to he made available. Tlie t u-rt ot the Act which >i« :ils with the ivi.irm ol' liicnl government mill not ( otne into operation until April next. BRITISH EMPIRE TRADES EXHIBITION. TO BE HELD IN BUENOS AYRES. taalTlSll OFFICIAL ttJSELSSS.I ("Received 26th, 5.3 p.m.) ItrOfßY. September 25. The Britinh Empire Trades Exhibition it> organised, to be held at ffueno* A.vres for six weeks. The project has Ihtji initiated bv the British Chamber of Commerce in Buenos Ayres nrid follows opportunely upon the rewnt visit of the British Trade Mission, headed by 1/ord d'Abortion, to the Argentine, when arrangements for iiicre&aetl reriprncal trading between th<» two countries were concluded. Anglo-Argentine interests have subscribed substantial guarantees and the oi'tmnination of the Kxhibition is proceeding rapidly in Buenos Ayres and in London FIRES IN SHIPS* COAL. INSURANCE PREMIUMS RAISED. (CSITSD rtlM ASSOCIATION —BT ELICTRIO TBX.XO»*ra —COPYRIGHT.) SYDNEY, September 20. Advice has been received that the liondon underwriter# have raised the premiums for insuring Australian coal cargoes to about £3 per cent, as a result of the succession of fires aboard ■hip* bringing coal to Australia. It la alio likely that the cost of insuring the vessels themselves will be substantially increased so that a hardenng of freights, which are now at a low figuro, is inevitable.—Australian Press Association. INTER-IMPERIAL TRADE. A BRIGHT OUTLOOK. (rams a»socjat?o* tkjsokam.) WELLINGTON, September 26. Mr L. A. Paish, recently appointed British Trade Commissioner, was the gUflSt of the Wellington Chamber of Commerce at a luncheon to-day. In regard to trade since the war, he said, there had been a very definite movement In what might be called the centre of gravity of the export trade of the world. Before the war {wssibly ene-half of the world trade emanated from Europe. To-day about one-third was the figure. It was only to be expected, therefore, that there should be lomf diminution in Britain's volume from the pre-war state of affairs. Most States were now working from 1924 as the datum year, and in the last five years British exports had increased by I per cent. If they confined themselves to British manufactured goods, the figure was over 10 per cent. Britain had actually 7 per cent, more people employed than in 1924. After dealing with particular industries, lie said he did not feel at all pesslmistio about the prospects of the Homeland. With increasing wealth and the development of the Empire there was every reason to expect an inerease in and a development of interImperial trade. SHCONDARY INDUSTRIES. APPEAL FOB ENCOURAGEMENT. [■TXS Kill lyeels! terries.] AUCKLAND, September 26. Factors that are retarding the growth of industry were commented upon by Jfr Albert Spencer, President of the Auckland Provincial Employers' Association, in his address to members at today's annual meeting. Although there was plenty of free Money available, said Mr Spencer, investors were still shy of risking large lums in industrial enterprises under the present unstable conditions of Arbitration awards and the thousand and one Citty Government restrictions pertaing to-day. These setbacks were having a far-reaching effect in restricting industrial expansion. To meet the diffi' eulties of labour and competition, many firms had to curtail their staffs. It was argent that production costs should be rwduoed to a more economic level, so that tli« Dominion could successfully compot« with other countries where conditions were more favourable to manufacturers. Touching on unemployment, Mr Speneer said the policy of the Government in raising the pav on relief works to the full U iiion rate had encouraged men who were making a living on their own account to apply for work on Government jobs. "In the country, men have thrown up their jobs on farms to secure work offered by the Public Works Department," he added. "In the meantime a steady stream of unemployed has migrated from Australia- This invading army, if not speedily checked, will prove a menace and is already having a serious effect on the workers of New Zealand. All this goes to prove that unemployment cannot be settled by providing relief works and creating lev playing grouuds, which are non-pro-duetive. The only solution, to tiiy mind i# a vigorous, sound encouragement of our secondary industries, and a comprehensive national land settlement scheme by utilising our waste Crown glands now lying idle." DEMAND FOR LAND. (raass associatiom tilsosak.) GISBORNE, September 26. As showing the renewed demand for land, agents report that eight farms have been sold in the last two months, aoid there is still considerable enquiry.

LAND TAXATION. GOVERNMENT'S PROPOSALS A CRITICAL COMMENT. Pvne, Gould, Guiness, Ltd., s annual "Review" makes some critical comment on the increased land taxation proposals of the Government. We view with grave apprehension, it states, the Government's proposals, as submitted in the Budget, for the additional taxation burden on landholders. It has long been debatable whether the iniul tax system for freeholders as against an income tax for leaseholders, in many cases farming the same class of land, is equitable. It is thought that the fair tax for all landowners, despite the Department's complaint that income tax assessment of farmers is diffi< u t and costly, is income tax on profits earned, as is paid by other sections of the community, provided that owners who do not obtain a reasonable return from their land are suitably penali ed. There surely can be no suggestion that the new proposals are just and equitable because they will apparently make a farmer liable for income tax in a really prosperous year, whilst in a bad year he will be called upon to pay land tax, in some instances very much increased, despite the fact that no profits have been earned. We strongly disapprove of an increased graduated land tax as a means, under existing conditions, to introduce closer settlement by the breaking up of big estates. However desirable smaller holdings may be in certain districts, we contend that other means must be found to achieve this, if they are not already available, because the majority of the larger estates in this Province are either back country properties quite unsuited for subdivision, or family estates worked more economically as a whole for se\eral beneficiaries. If, despite its inequality, the proposed increase in the graduated tax is to be enforced, the £12,500 valuation should be increased to £20,000 and a "hardship" clause added to prevent unfair suffering to those owners who are only too anxious to reduce or dispose of their properties if suitable for profitable subdivision. This "hardship clause should also include relief to ] roper ty owner* whoso land will produce less if subdivided or, because of its situation, is unsuitable for "cutting up." Departmental land valuations should in every instance be automatically reduced to the purchase price which the owner is prepared to accept, as was provided in the legislation for the "bursting up" of big estates in the nineties. In view of the "fact that many farmers are only now feeling their feet after the disastrous slump years, and investors are again beginning favourably to consider lending on farm mortgages, we much regret that the Government finds it necessary to propose to disturb this improvement in farmers' finance by an increase in land taxation. Its enforcement , must, we contend, adversely affect the improvement experienced during the recent prosperous years, which benefited both town and country, and necessitate several farmers, who had hoped to save their farms, being forced into the ranks of the unemployed. Land values were quietly reaching a level in keeping with probable production returns, and an area ef sane valuations was looked forward to. Now the confidence gained appears likely to be again lost through unwise legislation. Only a small number of the farming community, and in fact few among the other sections in the Dominion, can pay any increased, or in many instances even existing taxation without restricting enterprise, and what, in our opinion, is urgently required is reduced expenditure on public services. The country spends mort on its public services than it can afford, and its people should insist on reduced expenditure, which would soon result in less taxation and some inducement for the launching of new enterprise. This appears also to be the best solution of the unemployment question, for new enterprises would quickly absorb not only those civil servants no longer required with a reduced service, but those workers now unable to draw the necessary weekly pay envelope. LOW STEEL PRICES. SIX THOUSAND THROWN OUT OF WORK. (uxmo mass association —b* *lxct*io nuouMi -cortmionr.) LONDON, September 25. Owing to the lowering of steel prices on the Continent, between 5000 and 0000 employees at Ebbwvale Iron and Steel Works received notice during" the week-end.—Australian Press Association. FIBHINEBS IN BACON. (lUII ASSOCIATION T*IJNJ*AK.) PALMERSTON NORTH, Sept. 26. The executive of the Manawatu-Oroua Pig Breeders' Association discussed fishiness in bacon, and resolved to send a letter to the Meat Board regretting that a report had been published before the matter had been thoroughly investigated. MT. HUTT DAIRY CO. ANNUAL REPORT. The ninth Annual general meeting of shareholder of the Mt. Hutt Co-operative Dairy Co.. Ltd., is to be held on Monday evening. The annual report shows that the company has had a successful year. Supplies of cream kept up well, aud the output of butter showed an increase of nine tons, being 108 tons lOcwt 851b. Prices maintained an even level. It is a matter for congratulation that the price of beef has improved considerably, and dairymen can now look forward to a satisfactory return for their cuß cows. This should encourage them to have their nerds tested for butter-fat, and so improve the return for their labour. The profit and loss account shows a credit balance of £ll2O lis 3d. which the directors propose to allocate as follows: —To pay a bonus of Id per lb on butter-fal supplies, £839 16s 8d; to write off buildings, £lO9 13s; to write off machinery, £l7l Is 7d; total, £ll2O lis 3d. The retiring members of the directorate are Messrs I>. W. Hampton, J. T. Mangin, and B. W. Wightman, all of whom offer themselves for re-election. The total butter-fat purchased by the company was 201,5601b, which produced 108 tons 19cwt 851b of butter, being an average of 1.21121b of butter from each lb of butterfat. OTAGO HORSE PARADE. (rasss ASsoctATiox txlkgkam.) DUNEDIN, September 36. There were good entries tt>-da.y for the Otago A. and P. Society's horse parade at Tahuna Park. The championship was won by Mr Andrew Grant (Fairlie) with the imported aim Desire, who had previously worl that award here. Mr Alex Cullen (Goodwood) took the reserve championship with Kay of Hope, also a former champion. Wright, Stephenson's challenge cup waa won by Mr John Young (Allanton), with Brunstone Duplicate, who wae third to the other two in the aged aire class. Both first and second had previouely held the cup. The display ef young Stock was ef excellent quality. 1