NOTES OF THE DAY

Dominion, Volume 26, Issue 147, 17 March 1933, Page 10

NOTES OF THE DAY

Holders of Government securities have only eight days left in which to give free assent to the conversion offer. It is true that if they do not dissent, their assent will be taken for,granted; but it will add much more to New Zealand’s credit if the Minister of Finance can announce an overwhelming and active response. That aspect should not be lost on holders of stock and bonds because, if they raise the national credit, they at the same time enhance their own investment. Some bondholders object to the element of coercion behind the scheme, arguing that the provision of penalties offends against the voluntary principle and also that it is unnecessary. The best way to support their contention is to swell the already long ranks of volunteers, and so visibly demonstrate that the patriotic motive has practical power. As for the general object of the conversion—to secure a reduction in the general level of interest rates —that has universal approval. There is the further fact that the Budget will be relieved, thus improving the bondholders’ security.

Because of its high value per acre and low cost in equipment, seed-growing, considers the Department of Agriculture, is eminently suitable for the type of settlement contemplated by the small farms plan. Steps are being taken to inaugurate this industry under expert instruction and supervision. There are no doubt encouraging prospects for organised seed-growing in this country. New Zealand ryegrass and cocksfoot seeds are highly valued overseas. A considerable trade in the export of grass seed has been built up in recent years, especially with the United Kingdom, Australia, and the United States. The total value of grass and clover seed exported to all countries in 1930 Was £166, 221. Under the department’s scheme, however, the seed industry is not to be confined to grasses. The proposal has the additional merit of adding another string to our bow in the export of produce. The ‘tendency has been to restrict our enterprise within too small a compass, jo have our eggs in too few baskets. By reaching out in other directions we can multiply our resources, and in developing primary industries suitable for small farms widen the scope for rural workers of modest means.

It is a little disappointing to learn that the trial shipment of New Zealand chilled beef to London has arrived in “moderate” condition. Expert opinion considers that the quality of the beef was admirable, and that lack of experience was apparently' responsible for its faulty condition. If, as has been deduced, the time in transit is not the trouble, but the methods of handling at the source, the remedy should not be insuperable. It may be pertinent to recall, however, that difficulties were raised at the ship’s side owing to the refusal of the waterside workers to continue loading after 10 o’clock at night. To what extent the hold-up was responsible for the condition of the shipment on arrival can only be surmised. As to the experiment itself there appears to be sufficient ground to encourage the promoters to persevere in their efforts to establish a new trade. It is to be hoped, however, that with future shipments these will be facilitated in every possible way by the labour unions concerned. It is to their interest as well as of others to co-operate in making the venture a commercial success.

To-day’s report of a “spectacular rally” on the New York Stock Exchange would almost justify the impression that the Government’s measures for controlling the financial situation had had the effect of restoring public confidence over-night. It would be nearer the truth to suggest that the stimulus for the buoyant tone of the market is psychological rather than material, representing an emotional reaction from the mental depression created by the first shock of the crisis. The Americans temperamentally are peculiarly susceptible to mass suggestion, no doubt because they have been habituated to the methods of "crowd psychology” by which their national thinking is controlled and directed. Herein lies the explanation of these sudden tumults in public opinion which are a familiar feature of American life, and which not infrequently are reflected in the Stock Exchange markets by alternate jumps and slumps in prices. Slow but sure is an excellent motto, and often the guarantee of healthy progress.