NOTES OF THE DAY

Dominion, Volume 26, Issue 32, 1 November 1932, Page 8

NOTES OF THE DAY

Infra-red ray photography, mentioned m the news this morning, is certainly a striking enough invention to attract the notice or the Admiralty and War Office, departments to which it should have obvious recommendations. The process has been used for some time by astronomers in attempts to pierce the clouds surrounding such planets as Venus. Since last May the invention has been given practical application to photography as readers of The Times know and appreciate, on account of the marvellous range of some ot the pictures taken by this means. The first was a photograph of the French coast taken from Dover and others even more striking have followed. The Times dubs the process as photographing the invisible,” explaining that by its means the photographer can take objects or scenery which the thickness of the atmosphere prevents him from seeing. Perhaps some day mankind will possess a camera for seeing into the future or photographing the past. At any rate there is some expectation that by radio ancient sounds and dead voices may be recovered from the ether. These scientific marvels sometimes seem bewildering, yet they should also inspire hope. Knowledge will be power when man knows how to use it . *

It is not surprising to read in Mr. W. P. Devereux s review of the English wool trade that the decline in sterling has stimulated the demand for Bradford tops for export. What is surprising is that in the many messages dealing with the recent depreciation of the pound more mention was not made of the bonus, so conferred on exporters. For the effect has been to cheapen British quotations in terms of foreign currencies. A fortnight ago roughly 3.45 dollars, or 88 francs, or 14.5 marks was required to buy a pound’s worth of British goods. To-day the same quantity can be bought for 3.285 dollars, or 83.7 francs, or 13.8 marks. In other words British prices expressed in foreign currencies have been reduced by. almost 5 per cent., a difference by no means negligible when quotations are being cut to the narrowest margin. On the other hand recent reverses suffered by New Zealand meat and dairy produce on the London market might well have been more marked but for the fall in the pound sterling.

Considerable interest will attach to the response of Australian investors to the internal loan shortly to be offered for subscription by the Commonwealth Government. Some discussion of the terms has taken place with bankers at the Premiers’ Conference, the subject being that the Government is seeking a loan of £8 millions at per cent., with a currency of 10 years. At the same time the New Zealand Government is offering.s per cent, stock for a period of 7| years. The comparison with respect to both price and period is definitely unfavourable to New Zealand. If the Australian loan is successful, the Federal Government will have given an impressive demonstration of the effectiveness of the steps taken to lower interest rates. Two years ago it was offering stock bearing interest at 6 per cent.; to-day with the concurrence of thq-bankers it is about to invite subscriptions to a 3/ per cent. loan. The New .Zealand Government would do well to consider these terms along with the much dearer price it is prepared to pay, and to reflect on the effect its bid must have on the local money market.

Financial problems presented in the annual report of the Wellington tramways are in miniature those that face the country as k whole. Income or revenue has fallen sharply but a corresponding reduction has not yet been made in costs. Thus a surplus has been transformed into a deficit. One of the impressive features of. the report is the way in which the public has come to consider pennies, or “tuppences” in the case of one-section rides. Small savings are being practised by the general public of necessity. It is impossible to believe that the same people who are looking twice at small change do not approve State economies, in spite of the timidity of some politicians to face the issue. We believe these same politicians are assessing the public, mind wrongly. Like the railways the tramways are endeavouring’ to balance declining revenue by reducing expenditure. Thus the deficit has been kept within “manageable” limits but sooner or later, in the particular case of the tramways and the general case of the country, there must be a reckoning unless financial equilibrium is restored. And since revenue is proving inelastic, more pressure must be brought to bear upon costs.