MORE PRIVATE THRIFT DESIRABLE.

Gisborne Times, Volume XXXIII, Issue 3712, 23 December 1912, Page 5

MORE PRIVATE THRIFT DESIRABLE.

DOMINION’S FINANCIAL STRINGENCY. A HOPEFUL VIEW. WHAT THE CHAIRMAN OF BANK OF N.Z. THINKS. [BY TELEGRAPH—SPECIAL CORRESPONDENT) AUCKLAND, Dec. 22. A pressman yesterday morning had an interview with Mr Harold Beauchamp, chairman of directors of the Bank of New Zealand, on the subject of the stringency of the money market and the outlook for the coming year. Mr Beauchamp said that whilst recognising that there is a financial

stringency in the Dominion, the position to-day is entirely different to what it was in 190 S. “This financial stringency, you will remember, was brought about by a sudden and unexpected drop in the value of our principal primary product—wool. Today, on the other hand, wool is selling at' approximately 6d per pound more than it realised in 1908. That means w© are to-day getting something like £4,000,000 more for our wool than w© realised in 1908.

“The financial tightness to-day,” added Mr Beauchamp, “'is felt principally by the Government, Public Bodies, and by those who have speculated heavily in land, Amongst the last-named I should mention that there are many who have bitten off more than they can financially masticate, arid there is no chance of them obtaining relief until the finances of the Dominion are m a healthier condition.

“Personally I look forward to a successful mission by Hon. Mr Allen to the Old Country, and if he be successful in arranging for the renewal of loans, amounting roughly to £15,000.003, which mature in the near future, and succeeds also in getting an additional £2.000,000 to £2,500,000 of new money, there is every reason to believe timt the tightness we are feeling to-day will vanish within the next six or nine months. “Unquestionably under the Yard Government,” continued the chairman of the Bank of New Zealand, “public bodies were largely encouraged to embark on schemes through facilities which were afforded to them by the Government in respect of loans to these public bodies of cheap money. Several of these bodies which have made committments are now experiencing difficulties in getting money to carry out their engagements. I haveno doubt, however, that if Mr Allen bo successful he will- ho able to assist them to a moderate extent, Tint I do not believe these bodies will be encouraged to go in for the prosecution of so many public works as they were under previous Governments. “The small margin between our imports and exports shows that there is still a large amount of private extravagance and it would greatly assist in restoring the financial equilibrium if a little more thrift were practised. Judging, however, from the enormous number of people who are to-day on the wing throughout the Dominion paying visits to Australia, and hooking their passages by oversea. steamers, there does not- seem to ho much indication of an intention to practice private thrift.”