LAND OF BIG THINGS

Evening Star, Issue 18050, 18 August 1922, Page 7

LAND OF BIG THINGS

Kin BEAUCHAMP IH AMERICA. CANADA AND THE TARIFF. THE EXCHANGE POSITION. In an interesting communication published In. ike Wellington ‘ Post,’ Mr Harold Beauchamp, ih-e well-known banking authority, who recently toured the-United Stales and Canada, gives some vivid impressions. Landing in San Francisco, he was struck by tho optimism and enterprise of the people of that city. He writes: “The rapidity with which tho stately buildings were re-erected after the earthquake is in striking contrast to the slow progress made by us in New Zealand in tho erection of buildings. As evidence of the latter, I would refer to our Houses of Parliament now in course of construction, tho contract for which was let in 1913. I venture to say if that job had been undertaken, in the States it would have been ib-lsliedi in eighteen months, possibly less.” As some evidence of the bigness of things in California, Mr Beauchamp mentioned a Californian chicken rancher who keeps 100.000 laying hens,- and) this year raised 150.000 chickens for the market; and', next, a grower of asparagus, who cultivates 2,000 acres of that delectable vegetable. “Everything in tho United States of America appears to be on an equally large scale,” ho adds. “Yes, it’s a great country, and there is no limit to tho opportunities of the man with brains, energy, and ambition.” AN IDLE FLEET. From .San Francisco to Chicago be travelled via Salt Lake City by tho Southern Pacific Railway and allied 1 lines. It was, he wrote, a beautiful sight crossing -the Sierra Nevada Mountains, which in May were still covered, near tho summit, with much snow. A few hours out from San Francisco he passed the port of Benitia, where: there were moored quite -a large , fleet of steamers. “ I estimate there were -at least fifty, owned by the Mercantile Marino Board,” ho _ remarked. These steamers, with a deadweight capacity of about 8,500 tons, form portion of tho 1,400 odd ships that were built by the board during the war, when if was America’s ambition to secure command of the world's trade. Fortunately for Britishers tho Americans do not appear to be able to handle shipping profitably, with the result that, in spite of strong national protests, steps aro being taken, to dispose of this enormous fleet. To-day British-owned steamers, run by such companies as the Cunard, White Star, Canadian Pacific lines, and many others, command tho bulk of live Atlantic passenger traffic. Due day when he was in New York it was reported that over 10,000 people had sailed for Europe, all in British bottoms. AT OTTAWA, “At .Ottawa," he proceeded, “I attended a sitting of Parliament, when the Naval Subsidy Bill was under . discussion. Several speakers referred to the active and generous support given by -Australia and New Zealand to the Imperial Navy, and! contrasted this with the parsimony shown in that connection by Canada. At the afternoon adjournment I met, by appointment, the Prime Minister, the Right Hon. Mackenzia King, with whom I had a long and _ interesting conversation. Ho displayed considerable interest in and knowledge of New Zealand political questions. Ho pointed out how greatly Canada is suffering from tho enormous financial burdens oast on her by the Great War, by the abnormal increase in public expenditure, -loss ou railways operated l and owned by tho dominion, and from other causes with which wo in New Zealand have in recent years been confronted. The National Debt of Canada to-day stands .at over 2,500,000,000 dollars—or say £500,000,000 —which is only about £165,000,000 less than the National Debt of Great Britain prior to tho war. However, by indulging in _ a drastic policy of retrenchment and an _ increase in taxation—principally per medium of the Customs—Mr Mackenzie King was hopeful that tho Government would ho able to place the finances of the dominion upon, a sound footing tfithin the near future. In that he will, no doubt, be assisted by tho steady improvement now taking place in trade and industry. Canada is unquestionably feeling the effect of tho high protective tariff lately passed by the States, which, prior to its imposition, was of her best and most regular customers. This prompts many people—especially farmers—to revive the question of more intimate trade relations between the two countries by means of a reciprocal tariff. It will bo remembered that such a tariff was introduced by tho Banner Government in 1911, and its rejection by an overwhelming majority ended in tho defeat of that Administration. To secure the advantage of preferential duties given by Australasia and other portions of the Empire to British manufacturers, a. vast amount of American capital is invested and continues to he* invested in Canada. That is unquestionably good for Canada. “I found money cheap and abundant_ in Canada, although many industries arc being adversely affected by high taxation. That, however, is tire experience of nearly every country in tho British Empire, and is tho natural corollary to the Grab War. .One cannot expect to escape the effect of that for some, time to come, I think. Still, Canada, like Australia and New Zealand,_ is a country of illimitable resources, and, with a substantial increase in the population, she is bound to come into her own sooner or later.

GOVERNMENT PROFIT ON ALCOHOL. “Quebec, is the only wet province in Canada, Iho sale and control of alcohol being undertaken by a board created by the Government. Under this system tho Government at tlie moment is making a profit of not less than £1,000.000 per annum, a sum sufficient to extinguish the indebtedness of tho province within twenty years. Montreal, iho chief city in Quebec, -has' become the Mecca for vast numbers of visitors from other parts of Canada that have gone ‘dry’ and from tho United States. To provide for the accommodation of these a palatial new hotel—the Mount Stephen—is now under construction. Already Montreal is well served by tho Windsor and RitzCarlton. which formerly were quite capable of catering for the wants of travellers." IMPROVING EXCHANGE.

Mr Beauchamp had something to say on the exchange situation: “ For months past there has been a steady improvement in tho rate of exchange as between New York and London. A day or two before I sailed for London I sold ray sight draft at 4.50 dollars to the £ sterling. In discussing the exchange question with a leading banker until largo foreign' connections, ho expressed the opinion that within twelve months—that is, unless anything very unforeseen happens—exchange will bo back to pre-war rate—viz., round -about 4.86 dollars lo tho £. No doubt it is being affected by tho ‘invasion’ of Europe by Americans. This season it is estimated by a competentauthority that American travellers and tourists " will spend in .Europe not less than 500,000,000 dollars—or say £100,000,000. “After crossing tho Atlantic on that wonder ship, tho Aquitania,. with nearly 700 first class passengers—mostly Americans—and seeing how they spend, I am quite prepared to believe in tho reliability of the estimate I have quoted. At present there is plcnlv of money available: for all legitimate enterprises in New York, the ruling rate for long-term loans being 4i- to 5 per cent. For day to day or weekly fixtures banks were making advances from 2j to 3 per cent. With iho Bank of England rale reduced to 3 1 per cent., it is probable that there will bo a further fall in tho value of money in New York and London—everything points to that." Tho bank rate has since been reduced to 3 per cent. Mr Beauchamp concluded his interesting letter with the information -that ho was staying at Lyndhurst, Hampshire, with two of his daughters.