BUSINESS OPINION

Evening Post, Volume CV, Issue 125, 29 May 1928, Page 12

BUSINESS OPINION

VARIETY OF TOPICS BANK INTEREST RATES ''Evening Post," 29th May. As usual a great .variety of topics of business interest came before the executive of the Associated Chambers of Commerce of New Zealand at its meeting last week. Mr. D. J. M'Gowan was in the chair, and other members present were Dr. Neale, Auckland; Mr. H. C. Campbell, Dunedin; Mr. W. J. Gilberd, AVauganui, and the secretary, Mr. C. M. Bowden. ; ■Remits from the Chambers of Commerce Conference held in Christchurch were considered. One of the principal matters dealt with was current rates of bank interest. The association has made representations from time to time to the Associated Banks ior a reduction of the rates of interest. Writing under date 2nd May, the president expressed the' opinion that the, Associated Banks should reduce the rate by % per cent., and if it is'not expedient to make the reduction to apply immediately, - suggested nu announcement be made to take effect from a future date. The chairman 'of. the Associated Banks, in reply, stated that with the inner knowledge they possess the banks are of opinion that, the moment is not yet vopportuno for a reduction. Although admittedly the figures for March quarter show conditions to have improved, stabilisation of the position had yet to demonstrate itself; and to make this surer, there still existed the necessity for watchful care and economy in business. . Generally the banks were watching the position most closely, and when the situation warranted it, a reduction in the overdraft rates would be made without delay. The secretary of the Associated, Chambers was instructed to again address the chairman of the Assoicated Banks, stating that it was the opinidn of this association that the banks had no legitimate answer" to the representations formerly made. It was felt that the action of the banks was being dictated primarily by the conditions ruling in Australia, and to that extent New Zealand traders were being penalised by the exigencies of the "Australian position. THIRD PARTY INSURANCE. The Minister of Public Works advised that third party insurance was still receiving consideration; a great deal of investigation was necessary, and a reply would be sent as soon as possible. The secretary reported that the Farmers' Union Conference carried a resolution urging compulsory third party motor insurance; Government to fix minimum, and collect .premium with the car registration. It was resolved to communicate further with the Public Works Department, pointing out that the association did not endorse the latter part of such a resolution. Miisterton Chamber directed attention to varying rates charged to industries by hydro-electric power boards, mid recommended that in view of the desirability of encouraging greatest possible use of hydro-electric power, the association promote independent inquiry by a technical committee into power generating costs and prices. The matter was left m the hands of the president and secretary. SHIPPING AND TRANSPORT. Several matters relating to shipping and transport in general were considered by the executive. Representations had been made to the Prime' Minister that representatives ot transport interests and business organisations 'be included in any inquiry made in connection with any of the transport problems. The Prime Minister promised_careful consideration of these representations. The secretary was' instructed to interview the Engineer of the Highways Board with regard to the general system ot expenditure and revenue, and the relations with, and contributions from, local bodies. \- memorandum received from Auckland- Chamber suggested speeding up communication between Auckland and Dunedin by provision, in addition to Jhe present services, of daylight ferries, and night trains. ' It was recognised, that in regard to certain sections communication could be improved. The executive, read the memorandum with interest, and requested nd*and Dunedin Chambers to present a remit at next conference, and to arrange for full discussion thereof. Otficers ot the Railway Department returned to AVelliugton after investigating the running of night trains between Christchurcli and Dunedin. Their report has not yet been made. Mr. H. C. Campbell called attention to the fact that extension of protests by steamers arriving from overseas was, too frequent. After discussion it was arranged that Dunediu Chamber be asked to submit a remit for next conference with opinion as to. the legality of the course pursued in certain cases. 1 HOLIDAYS. Representations made to the Associated Banks on observance of Saints' Days, elicited the reply that the banks would make no objection to legislation being introduced eliminating such days from the schedule of holidays, and that the' At-torney-General had been advised accordingly. No objection to a fixed Easter,-it was reported, had been made by the Bishop of Wellington, and the Wellington Min-. isters' "Association had resolved in favour\of a fixed date for the observance of Easter. The secretary was instructed to ascertain the views of the Roman Catholic Archbishop on this subject, and on receipt of his reply to refer the matter to the Prime Minister. GOVERNMENT IN BUSINESS. The president had already made a statement on "Government in Business," particularly stressing the point that where trading is undertaken by the State, municipalities, or other local body, it should be oh 'fair terms, and subject to the same licenses, taxation, and restrictions as are imposed on private ventures. Attention was directed to the letting of rooms by Government Departments. It was pointed out that in various 'centres Government Departments, who did not pay rates or taxes, let or leased portions of their premises to the public for offices in competition with private enterprise. ,It was resolved to refer this question to the Internal Affairs Department ' for consideration and report. A number of legal matters were considered, including some arising out of the Crown Suits Act, Magistrate's Court Act, distress warrants, and taxation of nonresident traders. Other matters were, drawback on imported butter boxes, cheese crates, and fruit boxes; trade with Australia, misuse of the word "Australasia," commercial arbitration, and claims against harbour boards and municipalities. The next conference will be held in Wellington. *