ESTABLISHED 1868. The Marlborough Express. PUBLISHED: EVERY EVENING. TUESDAY, MAY 14, 1912. COMMERCE AND FINANCE.

Marlborough Express, Volume XLVI, Issue 116, 14 May 1912, Page 4

ESTABLISHED 1868. The Marlborough Express. PUBLISHED: EVERY EVENING. TUESDAY, MAY 14, 1912. COMMERCE AND FINANCE.

Mr Harold Beauchamp, . the . exChairman of Directors of the Bank of New Zealand, has just returned1 to Wellington from a trip to the Old Country, during which he natfurally paid some attention to the general condition, of. British trade, and more especially to the position of affairs«on the money market. On the whole Mr Beauchamp, although never inclined to be -unduly-ioptiihistic, is of opinion that tlie, outlp9^'for New Zealand produce in Gteat" Britain is eminently satisfactory.- The, old prejudice against frozen j meat has riow practically disappeared; butter continues to bring high prices,, and Mr Beauchamp clearly thinks that we need not fear the much-discussed- Siberian competition so long as our butter makers maintain a high standard of quality. It is a pity that the American demand for. our wools should still be blocked by ' the almost prohibitive duty of sid a pound—"on all descriptions." Mr. Beauchamp, however, considers that there is a very fair chance of the duties being greatly diminished before very long. As a matter of fact, Congress -actually decided to make.substantial concessions in the duty on -ytfool; but President Taft suspended his approval until the Commission - appointeoT to revise the tariff as a whole had reported. It may be, we may add, that there will be no great reduction until after the Presidential electipn, and even then much will depend upon how tihe Iwoolgrowing States of the West vote. But sooner or, later the American people will insist upon being able to buy cheaper all wool, clothing. At present, Mr Beauchamp says, itl is oratorions that a large amount of "shoddy" is used! in materials worn by Americans, and all kinds of clothing, in consequence of: the high tariff, are extravagantly dear. While in Quebec an American told him that he had to pay seventh-five dollars, about £15, for a. decent suit of clothes in New York. The same clothes could be purchased in..-London for about £6. Immediately there is any appreciable reduction in tW United States duty on wool Mr Beauchamp predicts a great expansion of trade with New Zealand-^' It is just possible, also, Mr Beauohamp considers, that there may be a big demand from Australia before long foiv.New Zealand produce1. Should the draught last for any con r siderable time: a, very fine market, would undoubtedly ,be opened. In such circumstances it would be interesting to see how Australians would like paying the very high duties that had been placed on produce of all descriptions under the last tariff. In normal times Australia produced everything that could be grown in New Zealand, and it was, only in times of drought that she had to call on the Dominion for supplies. When this occurred it mattered nov to New Zealanders. what the duties were, for they .had to be paid by the Australian consumer. This was one of the arguments used by those who were opposed to New Zealandl federating with the Commonwealth.

Let. us turn now to Mr Beauchamp's ; remarks upon the present condition of the London money \niarket. The ex r Chairman of the Bank of New Zealand; expresses the opinion that there are.Jfcendencies to a distinct hardening of the interest rates. The British investor is sending more money abroad-than usual—principally ,to Canada, where higher rates of interest can be got than i by investment in Australia and New Zealand. Owing to the; strikes and the unsettled s|fcate of politics the interest is rapidly riswig in;--.£ondbn, and this, of course, must affect Australasian financing generally. The rate for ordinary . mortgages will, he thinks, soon be not less than 5i r*er cent. In Australia money is becoming dearer.owing to the banks being afraid of the overvaluation, of properties and from fear of drought. A subject of special interest'to New Zealand is the probable rates at. which any new Government loan.-.' would have to be raised. It is true that Sir Joseph Ward, before, resigning, .. :said that ample financial provision for our requirements' hdd been made up to October next;. but it is fairly certain that when wfe do go on the London market with another loan an advance on last year's rates will have to ba paid. _ If, however, a greater difficulty in raising loan moneys had ■the- effect of ..inducing: a correspondingly, increased regard tor economy, it miaiht, we think, -be esteemed a blessing in disguise. The require-i raents of a new country, the demand for roads and bridges to open up newly-settled' Crown "lands, render it imperative"'thati, for some time to come at' le^st. New Zealand must rnakA periodical excursions on to the London money market. But if the interest^ .ra% is substantially to increase, it may and we trust will cause whatever .Government may be in nowsr after next session to be sqrupulously economical and to refuse most sternly all demands for public works the immediate and undoubted' necessity of, which cannot be proved.',