Manawatu Daily Times TUESDAY, JUNE 23, 1925. Eloquent Optimism.

Manawatu Times, Volume XLIX, Issue 2714, 23 June 1925, Page 6

Manawatu Daily Times TUESDAY, JUNE 23, 1925. Eloquent Optimism.

The remarks made by the chairman of the Bank of New Zealand on the occasion of the annual meeting: ot shareholders arc always of more or less interest to the average man, be he connected with New Zealand’s primary or secondary industries. Even after making full allowance fbr academic arguments and theoretic conclusions, it must be acknowledged that, a man in the position of Sir George Elliot, is able to but his finger on the financial pulse of the country’s industries and may see potential weaknesses and latent possibilities long before they arc apparent to the average business man or producer. The prominence given by the chairman in his report to the primary industries of this country, may bo taken as a fair indication of the important part, played by our primary products in the economic structure of the Dominion. In a comprehensive review §ir George touched on every one of our primary industries of Importance and judging by his general remarks, the outlook for the immediate future should be fairly satisfactory.

The Wool Position.

Of particular interest, are his remarks concerning the past and present wool position, and herein he confirmed the opinion expressed by the “Times” on a number of occasions, namely that the high prices paid at the opening sales were mainly due to a strong speculative element, and that the persistent decline -was caused by problems of exchange and finance.

When we consider that prices opened at an average of £39 per bale, and within three or four months declined to £25, and eventually to £l9 per bale, it will be easily recognised that values and finance, from a banker’s point of view, presented real and great difficulties. However, the chairman’s conclusions with regard to the future of wool arc fairly optimistic, and producers will no doubt be ell advised to steer a medium course, a course between the two extremes, which will not be far off the mark when next season comes round.

The Dairy Industry.

Touching on the New Zealand Dairy industry, Sir George Elliot, like everyone of his predecessors, preached an increase of production, with this difference, however, that while his col-

leagues of former days seemed to infer that the poor dairy farmer was not working hard enough and long enough. Sir George urged better methods of production and Improved quality of manufacture. There are very few producers to-day who will not agree with him on every point he made. He laid particular stress op the value of herd testing, and as a banker and business man, emphasised the fact that If, by means of herd testing, the average yield of our dairy cows can be increased only by 101 b. per cow—an increase which will bring an additional million pounds to the Dominion, money spent by the Government in assisting herd testing would be money well spent.

Theory And Practice

Space will not permit following the chairman of the Bank of New Zealand through the ramifications of New Zealand's primary and secondary industries. His review was most comprehensive, and a certain amount of the optimism which permeated his peroration was no doubt due to the highly satisfactory financial results of the Bank’s ‘ working. The balance sheets of the Bank of New Zealand for the last ten years, have become monotonously satisfactory, so much so in fact, that every year, one turns instinctively to the chairman’s report in the hope' of finding some means, or device, whereby the bank’s prosperity might be shared, even to a small extent by the country at large. We are inclined to think that Sir George’s words of sage counsel would be listened to with greater care, and be received with more goodwill, were they accompanied by a practical token of sincerity.

Reduction In Interest.

A reduction in the rate of interest, which at present weighs down many of our Industries, restricts enterprise and hampers legitimate development, would have greater effect and speak more plainly than theories and arguments no matter how well they may be conceived.

It is safe to say, that the chairman’s words would carry greater weight and would be listened to with more confidence, if the policy of the Bank wore more designed towards serving the country as a whole, than the shareholders in particular, and so fully merit the claim made for it at times that it is a ‘'national’ institution. The part played by the Bank of New Zealand in our national and economic life, must, of necessity, carry with it great responsibilities. Service only and in itself to clients and shareholders cannot entirely discharge those responsibilities.