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Hawke's Bay Tribune, Volume X, Issue 186, 22 July 1920, Page 4

The Queensland Prime Minister, Mr. Theodore, is doubtless a little surprise 1 at the coolness, not to say frigidity, with which his State loan proposals have been received by London financiers. These latter have, however, made it quite clear that they will have but little to do with Governments, be they Labour or otherwise, who make no difficulty about carrying through legislative measures that are in effect repudiations of bargains made by their predecessors in office. This is precisely what the Queensland Labour Administration has done in connection with a large area of Crown lands leased for pastoral purposes. These lands were held by the tenants at what certainly looked like very small initial rents, which were subject to periodical revision, but under the condition that in no case should the rent for a new term be raised more than 50 per cent, upon that for the expiring term. On the footing of these leases a very largo amount of money, in the aggregate was advanced to the holders by both colonial and British financial institutions. But when the Labour Govern ment came into power it set almost a: once about cutting the heart out of these securities by introducing a Bill providing for more frequent revalua tions and doing away with the percen tage limitation above recited. The Bill passed very easily through tin Lower House, with its strong Labour majority, but was thrown out iu the Upper House, which had some sense of its responsibilities with regard to eon eluded contracts upon which outside parties had relied. But this was a dif Acuity that was easily got over, new Labour nominees being appointed to the Upper House in sufficient numbers to assure the passing of the Bill in that Chamber. As the result, the Bill became law, with consequences that can be easily understood, especially when considered in conjunction with the drought which followed on its passing. And yet, in the face of this, Mr. Theodore is, or at least prof<|ses to be, in a state of great indignation because London financiers, once bitten, are twice shy about entering into any loan bargain with him. It does not how good the security offered may. appear at the time of negotiation if it is liable to be trimmed and clipped in any way that a Government, pandering to class prejudices, may think fit]

Mr. Theodore has evidently had a pretty sharp lesson that should teach him that bargains, once made, must be kept, if a State is to maintain its good name, and that more especially is this the case where repudiation or modification operates adversely to the interests of those outside the jurisdiction.

Bradford correspondents of Australian papers to hand continue to predict further reductions in wool prices. Whether the wish is father to the thought can, of course, only be guessed. One of them, however, says that a good many men who have been appraising wool in Australia are now in Bradford, that their influence is percolating through the trade, and that it is beginning to be realised that there is a big weight of wool to be catalogued between now and the end of the Mar. Tn fact, no matter how good the market mav be, the trade is going to have “all on” to lift prospective supplies. There are, he continues, those who frankly say that the task of purchasing unsold stocks of wool at even current prices is beyond the power of the trade, and everyone to-day knows that finance is at the bottom of the present setback. The boom in the home trade has to a large extent passed, and while mills are expected to remain exceedingly busy for a long time, everybody is wanting to know how far merinos are going to drop to create a safe buying basis. It is becoming apparent that high wool prices cannot be maintained indefinitely without tho incoming of the buying power of the whole continent which existed in pre-war days. Although the presence of French buyers operating largely would soon make a big difference, ’it seems as if Australian selling centres will need greater buying power to absorb all stocks that can be mustered bv Great Britain, France, and even America. On the other hand, Northern France, Roubaix, and Tourcoing are manifesting signs of prosperity, mills everywhere are running day and night with three shifts of workpeople, and the textile industry is becoming re-established in a very remarkable way. “French mill operatives,” he concludes, “have had a tas'e of the horrors of four years’ war, they are prepared to stand almost any conditions of work rather than a German invasion, and recognising the principle that their only salvation lies in the direction ■ of work and earning nionev, they have their coats off, and are working splendidly.” The French mills have not, however, by any means recovered their full pre-war capacity for absorbing raw material, and their demand has hitherto been almost entirely in the direction of the finer grades. What this correspondent says with regard to merinos must, of course, apply with even greater force to the coarser classes of wool, which will no doubt be in even more plentiful supply.