FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20083, 12 November 1930, Page 12

FINANCE AND COMMERCE.

TO ENCOURAGE PRODUCTION. A "LET-UP" MONETARY POLICY. PROCESSOR GIBLIN'S VIEWS. "Our best efforts will not. succeed in balancing budgets all round at the present time/', said Professor Giblin, i'itchio Professor of Economics at the Melbourne University, during a lecture given under the auspices of the .Melbourne Chamber of Commerce. He advocated "somo monetary policy which •' v.-ill lead to a iet un' ct the depression | ."nd the restoration of production." Without this, he said, there was no real ! hope of balancing budgets. Total revenue. State ant? Commonwealth, would be reduced, Proiessor I Giblin estimated, by about £40,000,000, ! as compared with 1928-29, taking into recount the revised Customs revenue hut not the increase in direct taxation. Of the national expenditure, one-third was devoted to interest and sinking fund, one-third to upkeep of the "business" undertakings, and one-third to pensions and purposes which could be legarded as charitable. The first could not bo altered appreciably', nor could ilie second, except in tho direction of economical working and salaries reduction, while pensions could not be withdrawn when the practice of paying ibetn had been operating 20 years. A 10 per cent, cut in the salaries of lite entire Public Service, the utmost that could be made, would yield no more than £10,000,000, leaving still a deficiency of £30,000,000. To meet this fteficiency three ways lay open to the Government—to tax luxuries, to increase income, tax. and to impose emergency taxation. The conventional idea i-f a luxury was alcohol and tobacco, which were taxed £2 14s a head in Australia, as against £4 6s a head in Great Britain. Tf the Australian tax were raised to the level of the British, £10,000,000 would be added to the revenue. Moreover, Treasurers might exc.rciso a little more imagination with regard to luxuries and broaden the basis ■:i the definition. It should be remembered, too, that Australians might not be> so addicted to these luxuries as people overseas—(laughter)—and might rot bo prepared to purchase whatever tb6 cost. Australians paid £6 a head in State and Federal direct taxation; British people paid £9 a head. As England had more higher incomes, Australia could not bo expected to raise bcr taxes by 50 per cent., but she could probably increase direct taxation by 30 per cent., which would yield £7,(XX),000 t"> £8,000,000 more towards balancing the Budget. The third possibility was to impose taxation which would strike p c everyone's standard of living or comfort. Taxes on tea and sugar, successful in Great Britain, would not work in Australia, where wages were bound up with living costs measured by the price of such items as tea and sugsr. Taxes on these items were immediately reflected in increased production costs. Uniform Taxation Advocated. Other taxes, however, were open to Australia, Profesor Giblin continued, such as a stamp duty on wages and the rather ingenious sales tax, which, despite its cumbersomenosE, was sound, as iis effect ou food and items reflected in : ilse cost of production was email. Its effect was to make an all-round cut in the standard of living without affecting industry. Assessment and collection of one direct tax in all States, divided in i;r:its between Commonwealth and . State, and spread over tho whole year, with provision for discount for cash payment, was a system simple of adoption. State Treasurers to-day were t>o harassed that they would be prepared to forget their I 'fancies" and sink their differences, and a conference of Commonwealth and State representatives might well agree upon uniform taxation. Prgfesosr Giblin advocated a uniform taxation system throughout the Commonwealth, pointing out that State Governments could not arrange their finances until they knew what the Commonwealth proposed, and that sound public finance was impossible in the present circumstances. SYDNEY WOOL SALES. MARKET CONTINUES FIRM. PRESS 4B3OCIATIOX —El ELECTRIC TELBCjaAi-H—COPTEIQHT.) (Received November 11th, 9.10 p.m.) SYDNEY, November 11. At the wool sales, 11,124 bales were offered and 10.339 were sold at auction, 473 being disposed of privately. The market continued firm, with keen ' competition, marked preference being shown for all the best wools, while faulty descriptions were irregular. THE BRADFORD MARKET. LONDON, November 10. At Bradford quotations for merinos are firm on covering movements. Crossbreds are unchanged. STANDARDISED CHEESE. ItEESS tSSOCUTIOX TXLXOXAiI.) HAMILTON, November 11. To-morrow a large deputation consisting of the chairmen of the dairy companies making standardised cheese will wait on the Minister for Agriculture (Hon. A. J. Murdoch) in Wellington, to present to him the ease for continuance of the manufacture of the standardised article. The companies' represented manufacture approximately 40,000 tons of cheese, about half the total quantity made in the Dominion. EXPORT OF APPLES. irsEss. association TILIGE.AU.; WELLINGTON, November 11. The New Zealand Fruit Export Board of Control has received advice from its Argentine agents that tho regulation including New Zealand amongst the countries the products of which, had to submit to eight days in refrigerated 6torage before being distributed, has been altered to exclude New_ Z'ealand. This means that the special containers stipulated by the Argentine Government with air spaces * l>etween the boards of the lids. and th-? bottoms to allow the official r©irjgeration_ to penetrate are no longer necessary in the case of New Zealand fruit cases.

MOSGIEL WOOLLEN COMPANY. ANNUAL MEETING HELD. [TITS rEEE3 Special Service.] IXUNEDIN, November I.L. Jhe annual meeting of the Mosgiel Woollen Company was held this afternoon, when tho chairman, Sir John lioberts, presided over a good i-ttend-ance cf .siiareholdors. In moving the adoption of tiio % balance-sheet, the uhairman taid: "When we last met, 1 mentioned that during August and September of 1 Vil'J, sales were not easily made as i.-cstomers were anticipating that the lata fall in prices of wool would necessarily carry with it a decreased cost to tnem of their requirements. This came about and during the past year our selling were reduced. Tho decrease in the values of the productions of New Zealand is still going on and the values of wool, frozen meat, and dairy produce are noiv about £10,000,WX) less than they were two years ago. This must mean a decrease in the purchasing power of the inhabitants and must tend towards gi eater economy being exercised.

"The produce of the company's mill lu money value has during the past year been less than it was in the previous year, but the output ha 3 been satisfactory The late fall in the value of wool will mean that the supply required for the now current year will be less costly than it was last year. Wool is now at a low value and" our wool growers are at present in rather an unfortunate position. It is to be hoped that an improvement in valuea will not bo too long delayed "Turning to the balanoe-sheet it will be noticed that £1143 has be=n expended on new machinery. All the other items on the assets side are very sinylar to what they were last year and the only item that 1 may remark about is the increase of £3334 in the goods manufactured in process and raw material. This account is a fluctuating one and in many years a much larger sum has appeared than what is shown. .This year on the liabilities side it may ho noted that the employees' benefit fund has increased by only £363, which is less than the interest earned, the payments of allowances to retired employees accounting for the difference.

"Turning to the profit and loss account, it may l>© noted that discounts show a lessened charge of £799, which arises from the lower value of tho company s products. Fire insurances increased by the sum of £SB, and represents the insurances on the late additions to the mill. An unusual item appears as a bad debt written off. This is n usual trade loss and T may remark that it is four years since wo were called on to make n similar appropriation. The great similarity of the balance-sheet and profit and loss account this year as compared with the previous year, makes any further remarks by way of explanation unneceseary.

It affords the Board and mvself n.uch pleasure in stating that the work «j-t the mill and office and warehouse h;*s gone on most pleasantly and all employees have rendered gocd . Rnd efficient service."

ibir John then moved: "That the balance-sheet and profit and loss account be approved and th&t a dividend ■w 4 per cent, nnd n bonus or 2 per [ier cant, be paid for the haif-vear. making with the interim dividend!"naiid l: ' May 10 per cent, for the vear." r ~ r? was seconded Trr \| r A. tl. r isher and carried.

AUCKLAND AMUSEMENT

PARK, LTD

ANNUAL MEETING

[ THE PRESS Bpeeiil Service.}

AUCKLAND, November 11

A decision to raise funds for the transfer of properties of the Luna Park amusement area to Sydney, where an amalgamation with a new Australian company has been proposed, was made at a meeting of shareholders of the Auckland Amusement Park Co., Ltd. Mr Henry Havward, chairman of the directors, presided over a large attendance of members.

Following the adoption of the annual report and financial statement, Mr Hayward reported that a visit had recently been paid to Sydney by three of tne directors, who had made tentative arrangements with the promoters of a new company for the lease of a concession at Wentworth Park, a wellknown sports area in the centre ot Sydney. The venture was considered to be very promising and the transfer ot the Auckland company's properties to Australia would provide the most economic means for making a start proposed agreement was very favourable financially for the New Zealand shareholders, and ho urged its ratification. Th(j whole scheme was dependent, however, on the prospects of raising sufficient capital to carry out the necessary arrangements. The agreement was unanimously approved, and it was also decided to carry on activities at Luna, Park during the coming holiday season, providing conditions were favourable.

ABRAHAM AND WILLIAMS, LIMITED.

ANNUAL MEETING

of 1?* 6 . t \ cnty " n , i i lfch an ° ua l seneral meetin- ..._ T shareholders of Abraham and Wilharas, Ltd., was held at Wellington on Mon.Slßil2.iPrlo«fict l a ,l ld v loss , account, including fr t 10s Id brought torward from last 3d"fr™ 1 °l ed '\ balance of-£33,810 8a 3d, from which has to be deducted the inPS ? d t Pril amoSntins 63 3d, 9 aVßilable f " A dividend of 2J per cent, for the half, year was declared on the ordinary shares I r Wl i tb the 2 " per on*- Paid m April last, makes 5 per cent, tor the year, leaving a balance of £18,278 4s 3d to be carried forward.

Messrs D. Allan and S. Bolton, retiring directors, were re-elected. Mr P. T, Sim was appointed auditor for the ensuins year.

METAL MARKETS

(.Received November 11th, 9.10 p.m.)

LONDOIN, November 10. Xov. a. Kov. 10.

Coppci— Standard, spot, (psr ton.) £ ». d. 43 IS 0 C«er ton.) £ a. d. 44 0 Standard, forwaid . Electrolytic 43 10 45 5 7* 0 ii 0 45 4S 5 0 t° Wire bais Lead— 46 5 <18 6 n 0 46 6 0 i& 5 0 Spofc Forward .. Spelter— 15 13 15 15 0 c IS 10 0 lo 12 6 Spot Forward .. Tin— IS 5 0 U 13 0 15 6 0 Spot Forward Silver— 114 0 115 7 0 ti 112 1 a 113 0 3 Standard, per as .. per oz. Gold is quoted it & 16&i l« 11-iSd _ 18 l-6d 18 1-ISd 5s J|d a tiw euscs.