EFFECTS IN DOMINION

Evening Post, Volume CXI, Issue 108, 7 May 1926, Page 7

EFFECTS IN DOMINION

SOME DUNEDIN VIEWS

"WILL TIGHTEN UP EVERYTHING, ''

(By Telegraph.)

(Special to "The Evening Post") DUNEDIN, This Day. Several prominent financial men were interviewed to-day in regard to the effects of the strike. "It is unquestionably a most st ious position, and the most critical since the declaration of war," said the manager of a local bank, when asked for his opinion about the possible effect of the upheaval on tho financial situation in this country. "If it continues," he added, "the trouble will be reflected here, both in the matter of obtaining finance for carrying out the Wwks of the Government, and in connection with the realisation of our exports. The bulk of our produce goes to the London market, and if this is closed or upset in any way, naturally i'; must have a disastrous effect on tin ■■■alue of our exports." WRONG TO BE PESSIMISTIC. Another banker said lie considered that it was wrong to take a pessimistic, view of things, as he considered there was no justification for suc'i an attitude- just yet. "The Prime Minister appears to be hopeful," he explained, "and I believe that the good sense of tho public will prevail in the end. I am quite prepared t admit that if the struggle is at all protracted things will be very serious for us in New Zealand. Of course, it must seriously affect the purchasing power of those who buy our produce in the Old Country, and this in turn will be very bad for us in New Zealand. It is difficult, however, an yet to nake any sort of prediction." A mercantile manager said: "It is going to tighten up everything. The first effect, as you see, is to put off the London wool sales. That means <

that buyers Trill be longer in realising, so that money will be longer locked up. One of the biggest drawbacks will be the tieing up of shipping, but that will not be as serious as in~ the earlier strikes, because many of the vessels are now oil-driven, and they will be available, unless the watersiders come out. It is too early to say what the results in New Zealand will be, but the prices of our dairy products must be affected, because, with so many men out of work, they will have to buy butter and cheese in ounces instead of pounds, if they buy at all. For direct driving power the British factories do not now need so much coal as they used to, because they get their power from electricity; but it must be romembered that tho Old Country mainly relies on coal to make steam to generate' electricity, natural water power such as New Zealand possesses not being available. I think that the coal mine owners will have to take smaller profits and the workers lower wages."