The Hastings Standard. THURSDAY, APRIL 15, 1909 HUNTING FOR A CAUSE.

Hastings Standard, Volume XII, Issue 4130, 15 April 1909, Page 4

The Hastings Standard. THURSDAY, APRIL 15, 1909 HUNTING FOR A CAUSE.

The search for the cause of the financial stringency appears to be as difficult an undertaking as was the task of Diogenes when he set out to find an honest man. The hue and cry has been renewed in the hunt for the former abstract owing to its imagined discovery, by Mr N. Kettle, hidden away in the folds of the Mortgage Tax and held there by the octopus-like tentacles of the Graduated Land Tax. The personal ob- | s'ervations and experiences of him- | self and others led Mr Kettle to the conclusion he was on the right track, and at the Conference of the Chambers of Commerce on Tuesday he made such remarkably telling observations on the effects of these two taxes on the New Zealand money market that he convinced his hearers that he was right. So impressed was the Conference with what it had heard that it passed the following resolutions, moved by Mr Kettle: — "That whereas the mortgage tax has I been found to be the cause of a large j amount of capital being withdrawn j from New Zealand and to restrict the influx of capital for investment, and to create financial stringency in obtaining loans required for the legitimate development of tie country's natural resources the attention of the Govement be called to the position, and it is suggested that the mortgage tax" be abolished. Further, that in lieu thereof all income derived from the investment of capital be made subject to the income tax. That the incidence of the graduated tax on land generally, and especially as affecting the interests of private individuals in companies, be carefully reconsidered with a view to such tax being wholly or partially abolished." In.the evening the president and council of the Wellington Chamber entertained the delegates of the New Zealand Chambers of Commerce at dinner at tne Grand Hotel. Mr W. G. Duthie, president of the Wellington Chamber, presided, and amongst those present was the Right Hon. Sir J. G. Ward. In response to the toast to tbe Parliament the Premier took the opportunity to make spme observations with respect to the subject the conference had discussed that day. He contradicted the statements that had been made,land said that the principal cause of the financial stringency was the drop in values of wool and land, and he urged that the lesson to be learned should prevent people going into speculations when prices were at high water mark. To prove that New Zealand's credit stood as high as ever he gave two illustrations. Luring the past six months he had refused to take in one sum of £250,000 from Australia for investment in New Zealand at 4 per cent, because of a condition that the holders desired, viz., that the money should be repaid in London. If anyone doubted that that sum had

available the necessary information could in consequence be obtained. Further, during the current month and probably the first fortnight of the following month the sum of £235,000 at: 4 per cent had been arranged for by him from Australia. " vVas it fair then," he asked, "that statements similar to those to which he had referred should be disseminated to the harm of the people as a whole? The delegates would, he felt sure, agree with him it was not." Judging by the loud applause with which it is reported these statements were received, it is reasonable to assume that Sir Joseph Ward's statements met the approval of the delegates who had expressed different views during the day. If thatiis so, then it must be acknowledged that the theory advanced by the Hawke's Bay delegate must be at fault. But to whatever cause the stringency can be ascribed the thanks of the people are due to Mr Kettle for the manner in which he has worked at the subject. The scarcity of money, if it continues, will play havoc with the progress of the country, and the conference of Chambers, by ventilating the views held by commercial men, will show Parliament that it is its duty to grapple with the question.