THE DOMINION'S PROGRESS.

Lyttelton Times, Volume CXIX, Issue 14682, 13 May 1908, Page 8

THE DOMINION'S PROGRESS.

SOME DUNEDIN VIEWS. [FItOM OUR CoRRESI'ONDENT.J DUNEDIN, May 12

With respect to the pessimistic outlook predicted by the " Lyttelton Times," as the result of the loss of two millions by the fall in the price of wool and the raising of loans within the dominion instead of on the London market, the following Dunedin views were furnished to a " Star " reporter. NO INDICATIONS OF A DEPRESSION. A commercial man said: —" Put, as against the fall in wool, the fact that the farmers are now getting far better prices for their cereals, oats, etc., and that answers the gloomy predictions. To some extent, no doubt, the fall in the price of wool limits the spending power of the sheep men, but they have had some good years and can bear it. I do not see any reason for prophesying what we call bad times. That is rather an extreme way of putting it. That money will be less pientiful there can be no doubt. I fully expect a certain degree of stringency in commercial matters. I do not, however, see. any indications of what is known as a depression. It simply amounts to this, that men will have to go carefully. I can see that ahead of us. At tho same time, it is equally plain that what we have lost on the one hand is made up, and more than made up, on the other hand. It is held ,by many to be a pity and a mistake that the local money market should be depleted by municipal and other borrowing. Money Hius locked up is wanted for the development of trade, but I am not at all pessimistic about the outlook. I know of many farmers who are in an infinitely better position this year than they were last year, and if we go cautiously we shall be safe. That is my opinion." JUST THE SWING OF THE PENDULUM.

Another gentleman, who is unquestionably an authority on.money matters, spoke thus:—"l do not wish to be thought a pessimist, but I do think that we are going to have much tighter times than in the past ten years. We see the Government mop- ; ping up all the public money available and diverting it from its proper business channels, and that is having a serious effect. This has been going on for years past, and' we are only just beginning to feol the effects of it. The. high price to which country lands have been run in some parts of the dominion is also a matter of importance in considering the outlook. In Otago this has not been so noticeable, but in Wellington and some other places there has been far too much booming of country lands. That, of course, is one of the results of the high prices obtained by farmers and stock-owners. These high prices have given inflated values to the land. Such values are not supported by the present prices of stock and produce, and when produce and wool fall then down comes tho value of the land, but I don't think there is anything to be frightened of. It is simply the swing of the pendulum. We are going to have times a little tighter than in the past,., but there is nothing to be afraid of. There is no need to bo pessimistic, and no use in taking a gloomy view of things. That would only accentuate the trouble, if there is any trouble." WOOL PRICES. "It is very difficult to arrive at an average price in the matter of wool, but attention has been directed to the following figures (compiled from Messrs Charles Balme's averages). The price per lb of average New Zealand crossbreds in 1893 was lOd; in 1901, sd; in 1904, ll*d ; in 1905, Did ; in 1906, 14d ; in 1907 (December), 10d; while tho present value is 7£d. This by no means shows an unbroken record of ' good prices." AUCKLAND'S OPTIMISM. [From Our Correspondent.] AUCKLAND, May 12. "What is the financial outlook?" was a question put to a number of the leading financial men of Auckland by a "Star" representative this morning. The tenor of the replies given varies considerably, but the inquiry elicited some very interesting information. An authority on pastoral matters was first approached and he admitted that one of the principal reasons of the present outcry was because of the fact that wool had suffered such a severe slump in price. In this season the total clip of the dominion figures out at 400,000 bales and a loss of from £5 to £G per bale means that New Zealand this year receives approximately £2,500,000 less for her wool than was the case last season. ,

Asked what the position was as regards stock the reply was more hopeful. The dry weather experienced during the first three months of the year had its drawbacks, but it was instrumental in sweetening the ground, with the result that there has been a wonderful growth of pasturage. Stock are in splendid condition and prices are good with the result that the outlook for the winter is very hopeful. " A fortnight ago I went south," said another gentleman, " and in Wellington and Dunedin I heard great talk of a slump and bad time ahead. They were mournful over, tho price of wool. The drought had caused meat to come forward in small quantities and they did not seem to have made much money out of wheat. Then again they have been paying such big prices for land. Syndicates which bought up large areas at big juices now find the utmost difficulty in quitting purchases. Then the butter market has not been satisfactory. The drought came along and prices went up, but they did not get the benefit, having already sold their butter early in the season on consignment, so that altogether they are inclined to look rather dolefully on the aspects" Asked what the position was in the north, the reply was that there was a tightness in the money market. "As an instance," he quoted, "I can assure you that last month our firm had over £9OO worth of accounts, which had to stand over for payment, from clients who had never before failed to meet their obligations on the due day." "That tho bottom dropped clean out of the flax market this season," was another answer to a query put forward, " and the loss to the Auckland province alone between. January and April will be close, on £60,000. but it is unquestionably one of those fluctuations to which tho market is subject, A few years ago the present price would have been regarded as excellent, but the fictitious value of last season is responsible for the acute position in which many of these connected with the industry now find themselves.''

Despite the evidences of depression. in certain industries, there is a goneally optimistic feeling in business circles. Inquiries dieted the fact that there are no unemployed in Auckland, that all trades are in full swing, and that building operations steadily progress. Last year's buildings returns show that in Auckland., building construction to the extent of three-ouar-teis of a million was placed in hand.