Page 5 Advertisements Column 4

Evening Post, Volume XC, Issue 78, 30 September 1915, Page 5

ON THE OTHER SIDE AUSTRALIAN TRADE COMMONWEALTH BANK POSITION ,THE LOAN PROPOSALS. Mr. Harold Beauchamp, Chairman of the Bank of New Zealand, who returned from a visit to Australia yesterday, was seen by a representative of The Post, and asked to give a few impressions of the financial and commercial conditions in Australia as he^ saw them. "I was only able to take a bird's-eye view of financial and commercial conditions as_ they affect New South Wales," he replied. "In common with other States of the Commonwealth, New South Wales is feeling the effects of the war and the late severe droughty and I heard many complaints as to the state of business and the tightening of money. Relief, however, will in a great measure be obtained if the next " wheat harvest be as bountiful as many experts anticipate. Already, so far as New South Wales is concerned, tho latter are figuring on the yield being in the vicinity of 60,000,000 bushels. Allowing for 30,000,000 bushels being required for domestic consumption and for seed, this would give an exportable surplus of 30,000.000 bushels, which, taken at, say, 3s 4d per bushel, would give producers the handsome Teturn of £5,000,000 — a most welcome addition to the National chest. A MATTER OF SHIPS. "There may be some difficulty in handling and moving a harvest such as this," Mr. Beauchamp pointed out, "owy ing* to a Ecarcity of labour, railway 'trucks, and oversea steamers. To find bottoms for 30,000,000 bushels— New South Wales's contribution of wheat only — it is calculated that between 350 and 400 steamers of average size would be required. However, it is just as well not to anticipate these difficulties, bearing in mind the old saying that 'one must first catch one's hare before jugging it.' " AUSTRALIAN WAR LOAN. When asked about the effect the great Australian war loan would have on the money market, Mr. Beauchamp said the loan was for £5,000,000 at 4£ per cent, per annum, free of Federal and State income-tax. It was an unqualified success — the total subscriptions thereto amounting to over £13,000,000. Encouraged by this success, it is the intention of the Minister of Finance to shoitly place another loan on the market for £15,000.000, or possibly more. It remains to be seen whether or not this large amount will be as readily assimilated by the Australian public. The diversion of such a. large sum, or sums of money, from the ordinary channels of employment, he held, is bound to have an appreciable effect on lending rates, which to-day rule from b\ to 6 per cent, per annum, according to amounts borrowed and nature of security. In a very few cases, gilt-edged mortgages have lecently been renewed at 5 to 5^ per cent., but now no new money is available at these. rates. As in the case of New Zealand, the Government is expected to continue the prosecution of public works, and it is exceedingly to impress upon taxpayers the necessity of tapering-off, or discontinuing altogether during war time, expenditure under this bead. I The arrangement entered into between the New South Wales Government and the NortonGriffiths Syndicate for' the carrying out of certain public works in that State is roundly condemned by many people on the ground that the syndicate has by far the better end of the bargain, and that the Government is paying too dearly for its whistle. COMMONWEALTH NOTE ISSUE. "The bank note issue proceeds right merrily," Mr. Beauchamp went on. "When the Federal Government originally undertook this, it will be remembered that up to the first £7,000,000 issued it was obligatory for the Treasury to hold gold and bullion to the extent of 25 per cent., and that over and above the sum of £7,000,000 there should be a gold backing of £ for £. Owing, however, to the exigencies of the Federal and State Governments, the last-named condition has gone by the board, and to-day the Federal Minister of Finance has the right to issue ud to £50,000,000 with a 25 per cent, gold backing. Of this, there has been circulated approximately £37,000,000, against which the Treasury holds gold to the extent of 35 per cent. ; and I was given to understand that a strong attempt would be made to preserve that ratio of gold to paper as. further issues of notes take place. In' normal times I it is thought that an issue of £15,000,000 would suffice. I was informed that the States have borrowed from the Federal Government £15,000,000 on which they are paying 4£ per cent. Local bodies are also paying- the same rate, with a commission of 1£ per cent, to the Commonwealth Bank for arranging their finances. These loans, as to interest and principal^ are repayable by instalments extending over periods varying from 15 to 25 years. This,, I regard, as an excellent system, as it forces these public bodies to periodically reduce their indebtedness. JAPANESE ENTERPRISE. "Taking advantage of their opportunities, the Japanese are making a bold bid for the large section, of trade formerly done by Germany in Australia and^ owing to the quality and finish of their ' goods, I shall be surprised if they do not secure a permanent footing in the Australasian markets." Whilst Mr. Beauchamp was in Sydney, a Japanese steamer arrived with over 4000 tons of general merchandise for that port, and several other steamers are on the way. To facilitate trade between Japan and Australia, a branch of the Yokohama Specie Bank, a very old institution, has just been opened in Sydney. No doubt Japar. will be equally energetic in developing trade with New Zealand. ,As thaWountry is already a considerable | purcnaser from us of wool and other ' commodities, he thought it should be greatly to New Zealand's advantage to cultivate a close and permanent connection with her people. "I found a fine patriotic spirit in Sydney,) and a grim determination on the part of Australians generally to stand by the Old Empire nnto the end." Mr. Beaurhamp concluded. ' CONCERT AT WORKING MEN'S CLUB »■ A concert was given at the Working Men's Club last night to the members and their families, and was greatly enjoyed by a large audience. The club's orchestra, under the leadership of Mr. ! M'Glashan, assisted with various selections, arid vocal items were rendered by I Messrs. Hanlon, Warren, Long, Orsborne, Upcraft, Clements, Harding. Houston, Seiviers, and Lampart. A recitation by Miss Johnson was much appreciated, as was also a. piccolo solo by Mr. Minifie. Mr. Hollowa-v was the accompanist on the piano. Refreshments were provided. Mr. J. Rogers, chairman of the Entertainment Committee, had charge of all the arrangements. For Chronic Chest Complaints. Woods' Great Peppermint Cure, la 6d — Advt-