TOPICS OF THE DAY

Evening Post, Volume CXII, Issue 130, 29 November 1926, Page 8

TOPICS OF THE DAY

Following on what has been said in this column commendatory of the strong hand shown by the Melbourne Stock Exchange concerning, the noncommunication to itself of certain oil company reports, the remarks, reported on Saturday, of tho Chairman of the Wellington Stock Exchange are to the point. Within its own territory, and within the limits of its authority, a Stock Exchange can do a great deal to protect investors in such companies as arc "on its list. Though its powers may be limited, a Stock Exchange has tho ability—if it has the will —to so safeguard investors in listed stocks that those investors will come to rely on Stock. Exchange investments ' and the advice of brokers of repute; and thus tho investor —particularly tho modest one who has not sufficient "pull" to acquire "ground floor" opportunities—may be led to prefer moderate-return stocks to high-promise "wildcats" promoted outside the Stock Exchange. To guide small savings into safe, remunerative channels, free from the hawks that prey on Savings Bank pigeons, would be an achievement of tremendous economicsocial importance, and the increase of tho successful small shareholder class would bo politically valuablo also. Much in this direction can bo done by an honest and united Stock Exchange —within the limits of its powers.

What are those limits? The question cannot be completely answered within the short space at command, but a self-explanatory fact is the Auckland Stock Exchange's circular advising investors "to seek tho advice of a member of the Stock Exchange" before purchasing "from some of the sharo salesmen" travelling the country. As this circular implies, the Stock Exchange has no control over share-hawk-ing, nor does anybody else appear to possess any. At various inquiries into British company law proposals to prohibit or control share-selling by itinerant vendors have been considered, but no concrete enactment seems to havo emerged, probably because the vendors include both the just and tho unjust, and it is hard to discriminate. If, therefore, there is no power to deal with the share-selling that is carried on outside the Stock Exchange, then. apparently tho onus is on the Exchange brokers to conduct their business with such conspicuous probity that the small investor will be won over, and by this means tho Stock Exchange's powCr to list, to do-list, or to refuse to list companies, also to discountenance prospectuses, will gain added strength. Public confidence may be more powerful than legislation. But what is really wanted is a good deal of both. The higher tho reputation of Stock Exchange brokers as against outside brokers and "go-getters," the easier it will bo for tho politician to increase tho Exchange's authority.

If parents were compelled to pay directly for secondary education they would be more concerned to have full value for their money. Because the system is free they are content to take what they can, not realising that they are paying the full cost indirectly. In saying that full value ia not obtained wo make no reflection upon the secondary schools and their staffs. Tho

teachers aro doing their best, often under unfavourable conditions. The fault of the system is that there is not a sufficient selection of pupils, and many enter the colleges wheu they would be much better employed at work or in learning a trade. The Minister of Education, wo arc pleased to see, recognises this. Wo hope that he will go further and insist upon changes. The reintroductiou of the fee system would probably cure many of tho present ills, but no popularly-elected Parliament would dare to suggest such a step. The only other course, then, is to direct the pupils to that free education which will be of most benefit to them. The classification of pupils, it was hoped, would bo done in the junior schools; but there is some doubt, now whether these hopes will bo realised. Recently there were complaints that the junior high schools had a bias towards the grammar school course, and there was a demand for separate junior technical schools to counteract this. Wo have no hesitation in saying that the remedy proposed iv this demand would merely aggravate the ills which the junior high schools were expected to remove. If the junior schools do not fulfil their purpose in classification there is no reason for continuing them.

Iv the meantime the extension of the junior system is postponed till it is seen how it will operate. But either in this way, or by some other means, classifying must bo undertaken. To be successful, also, tho classification must not bo into higher and lower grades. Tho secondary schools, whether technical or grammar, must bo placed upon an equal footing. If they are unequal, parents will rush their children to the one which is deemed higher. The basis of the new system must be recognition that boys and girls differ in their natural ability. We do not want to push all the brightest into the professions and all the dullest into the trades. Ability is needed as much iv agriculture and manufacture as in medicine and law. Under our present system we force a boy to become, say, an indifferent lawyer when ho would otherwiso havo been a successful farmer. It will take time to correct the false ideas which aro at tho root of this faulty system, but the correction can be made by giving technical education a higher status and by opening the way to the technical professions to those youths who come in on tho ground floor. Tho technical school, as well as the grammar school, should have its link.with the University.

Statistics of Australian and New Zealand trade quoted by, Mr. Longuet contain ample proof that there is reason to seek some alteration of a onesided arrangement. New Zealand buys from tho Commonwealth more than twice as much as she sells, and even if this. Dominion is able to rcdueo her imports of wheat and coal there will still be a-big surplus in "favour of Australia. That there should be such a surplus is bad for New Zealand in various ways. It increases shipping charges, and it makes it necessary for this Dominion to transfer to Australia some of the funds which she obtains from Jier trade with Groat Britain. Further study of the problem is necessary before, a remedy can be suggested. Why is it that Australia is able to sell us so much?. Is it because sho is taking some of tho British trade in manufactured goods? If so, how is this to bo corrected while we maintain a British preferential tariff which apXilies to the whole Empire? There are similar inequalities of tradj as between this Dominion and Canada and the United States. Measures of'correction might well engage the particular attention of Chambers of Commerce and of the Department of Industries and Commerce.