NOTES OF THE DAY

Dominion, Volume 23, Issue 55, 28 November 1929, Page 10

NOTES OF THE DAY

No new idea is presented by Mr. T. Shaw when he speaks of the benefit enjoyed by the creditor in a period of falling prices. In fact he has only presented one-half of an old economic truism. It is that periods of inflation favour the creditor and prejudice the debtor, and periods of deflation reverse the benefits. Mr, Shaw says that, owing to deflation, Great Britain “is now paying £100,000,000 a year too much (as interest on the war debt) to people who have not the smallest moral right to it.” But if that statement of the case is accepted, then Britain during the period of inflation was paying many millions less than was right and proper to the holders of Consols. Everyone remembers the straits to which many people of fixed incomes were reduced during and after the war when prices were rising. They possessed the. same income, but it would buy far less.. And the securities from which the income was drawn also depreciated heavily so that it did not pay to realise. It would only be fair, therefore, if those who are benefiting by deflation are to have their financial wings clipped that the earlier sufferers from inflation should be compensated.

The mischief that precocious young girls can work and the degradation they may cause in others were given emphasis by the Chief Justice in the Supreme Court yesterday. His Honour no doubt weighed his words when he said “such girls as these, if left at large, are and will be not only a danger to themselves, but a menace to the vouth of the community.” The trouble is, as was pointed out, that there is no power to circumscribe the evil influence of such girls or to take measures for their discipline and reform. The community “danger and menace” is left undisturbed. Undoubtedly, if there is no hope for the reform of such cases in their ? wn homes, there should be power to commit them to a disciplinary institution, though institutionalism does not always produce the best results. Here is a problem for the women’s organisations to solve. They probably have been active in tightening the law to protect women and girls against predatory males, and should be equally ready to eliminate this other danger. " (

According to Mr. de la Perrelle, the number of loans paid by the State Advances Office in the first ten months of the current year totalled 5161 and amounted to £5,418,022. Loans authorised involve even, bigger figures and applications for another £4,000,000 are pending. Jt is open to doubt whether this rate of borrowing is justified. Ihe housing shortage, for instance, has been largely overtaken, even in Wellington. In every part of the Dominion houses are difficult to sell, and the “To Let” sign is becoming increasingly common. Many people who own houses, including a great number in the working class, look askance at the Government’s present policy of granting loans regardless of whether there is already adequate housing provision in a particular district. The result is to depreciate the value of houses already built and to over-load an already glutted market. From the Government’s viewpoint, there is the further consideration that past and present security in houses may be depreciated by its own unrestricted lending.

Wellington is doing well to examine possible sites for future aerodromes. Past experience in other directions shows the necessity of looking ahead. The efforts being made to secure Gear Island as a landing ground are, therefore, worthy of encouragement. It is already obvious that Rongotai will not meet all requirements. Its great recommendation is its accessibility to the City, but the area is restricted, and its suitability as a training ground has been seriously questioned. Perhaps the best line of development in the immediate future will be to make Rongotai the commercial airport and Gear Island for some other suitable site) the training ground and home of the amateurs. Besides providing a large land area, Gear Island possesses water frontages that could be developed for seaplanes. Another site possessing this double recommendation exists at Porirua. But the chief thing is that the public eye is open to the possibilities, and Wellington should be insured against loss by neglect to make early provision against the inevitable advance of aviation.