CHAMBER OF COMMERCE.

New Zealand Herald, Volume XXXI, Issue 9628, 28 September 1894, Page 6

CHAMBER OF COMMERCE.

THREE MONTHS' TRADE.

A BRIGHTER PROSPECT.

PARLIAMENTARY BILLS.

A quarterly meeting of the Auckland Chamber of Commerce was held yesterday afternoon. Mr. A. H. Nathan presided, and amongst those present were Messrs. Carr, Thornes, Aickin, Clark, Younghusband, John Burns, Reid, McCorquodale, Smith, Hill, S. C. Johnson, S. Vaile, etc.

THE CHAIRMAN'S ADDRESS. The Chairman said since the last quarterly meeting at which the late Mr. Porter had presided, there had been a great deal to engage the attention of the executive committee. That committee had considered it its duty to send a letter of condolence to Mrs. Porter and family acknowledging the services Mr. Porter had rendered to the Chamber. It was usual, went on the Chairman, at the termination of every quarter, to give a synopsis of events of interest that had occarred. All were aware that commerce and trade been unusually dull. TRADE DEPRESSION. Although quiet business was generally anticipated at that period of the year, all ? he thought would agree with him that business had shown a decided falliug off this winter. The cause of this depression was easy to find. A great many people put it down to the legislation which was now being brought forward by the Government. Others attributed it to the low rattle of prices ruling for the Colony's commodities. Others again thought it due to the stringency of the money market Perhaps, said Mr. Nathan, it was attributable to a combination of all three causes. There was no doubt that New Zealand products, aud those of the Auckland district also, had attained a very low figure; consequently, a less amount of money was available from all sources for distribution. There was, however, some little reason to hope that in the near future there would be a decided advance in prices. Therefore, he did not think the commercial community should be low spirited. WOOL AND GUM.

Wool had already shown a decided advance, and for the coming clip a better price might be anticipated than had been obtained for the past two years The admisbion of wool free into the American market had already had the_ effect of enhancing the value of that article. And a half-penny or a penny a pound meant millions to the Australian colonies. New Zealand would of course be affected considerably. Gum, of all things, affected Auckland, whether the market rcse or fell. At the _ present time prices were very low. Still there were hopes that the present American tariff would affect this commodity. He (the speaker) had been informed by - cable last week that already there had been a movement from London to America. The quantity of kauri gum held in London at the present time was three or four times what had been the usual average for years past. The consequence of this accumulation had been that prices had been kept down simply through want of i* market for the large quantity on hand. The only hope was that America would relieve that congested market. And he (the speaker) was glad to say that a commencement had already been made in that direction. At the sales held on Thursday in last week there had been a decided improveineneut in high-class gum. (Hear, hear.) Although low-class gums had not been similarly affected he had no doubt that, when the market had been cleared of the high class, the trade would have to fall back upon some of the lower classes of which the large stocks in London at present consisted. He had been also informed that the quantity moved off had been rather larger than usual. Therefore as regards kauri gum a little movement might be expected. At the present time the market in Auckland had not responded to the rise, owing probably to that market's congested state and the large stocks held locally. but there was every reason to believe that as soon as America stepped in to buy little better prices might be seen in Auckland.

FLAX AND TIMBER. As regards flax, that was practically a dead letter in the province, and, except for export to the Australian colonies, it was likely to be so for some time to come, until the prices of Manilla and sisal were affected. Whilst present low rices remained there was no prospect for New Zealand flax, nor would there be unless some other purpose was found for it than existed at present. The timber market, the Chairman went on, had shown a much livelier feeling during the past quarter, and the mills, especially on the Kaipara River were well employed. There seemed to be a demand for kahikatea timber, which had hitherto not had much of a market, but which now was certainly coming into prominence. It seemed as if it would be a big competitor with kauri timber in Auckland's export, not, of course, for the same purposes. For butter boxes, furniture, and cabinet work Australians were beginning to find it a valuable timber, at their doors and at a very low price. He (the speaker) was happy to say they were commencing to make use of it. The shipments of kauri timber to the London market were also evidently increasing, and it would, he hoped, in the future be one of the regular exports of Auckland province, and a regular standard in the English market.

FINANCIAL AFFAIRS. Passing on, Mr. Nathan said the present state of the financial affairs of the colony had engaged the attention of the executive, but they had not seen any reason to interfere with the views of the Government in regard to the bank schemes, except that of the amalgamation between the banks. When that matter had been spoken of the executive had deemed it their duty to combine with other Chambers of Commerce and to send a telegram to their representatives in Parliament, and to the Colonial Treasurer, stating that in any action that was taken taxpayers should be relieved of any liability. To this Mr. Ward had replied that every care would be taken that such should he the case.

LOOK-UP OF MONBY. The large quantity of money that appeared to be locked up in New Zealand at the present time, at once showed the want of confidence felt by people in business whether commercially or in other pursuits. That had a good deal to answer for in respect to the present depressed state of trade. New Zealand, however, was not alone in that respect. In England at the present time they were met with the same fact. The reserves held by the banks there had never been so large, and when it was considered that all the principal banks were only offering on deposits £ per cent, per annum, it might well be understood what a lock up of money there was with no satisfactory outlet to lenders. PARLIAMENTARY. The Bills brought in by the Government during the present session of Parliament had also engaged the attention of the executive, and they had taken action, where necessary, by calling attention to any matters affecting the commercial interests of the community. The Bankruptcy Act Amendment Bill had been very carefully studied. That had for its prominent feature the throwing of assigned estates., really, into the hands of the Official Assignee. The liabilities of trustees, and the publication and registration of deeds of assignment and the effect of such publicity, had the effect of virtually throwing all insolvent estates into the hands of the official he had named, for, he took it, no private individuals would undertake the . responsibility of winding up estates under such stringent measures as were proposed in the Bill. There had been a diversity of opinion amongst Chambers of Commerce in the colony regarding the Bill. But the executive, after carefully studying it, had come to the conclusion that, with a few amendments, it was really in the interests of the commercial community. And they had advised their Parliamentary representatives accordingly, asking them to endeavour to make such amendments as they thought right in the interests of business people.

THE TARIFF. There was a Bill, proceeded Mr. Nathan, now before the House called the Tariff Bill. The object of this measure, the Premier had stated, was not to add to taxation, but it was for the purpose of altering the decisions of the Customs ; or he (the speaker) supposed they would call it the taxation. Many of the decisions now acted upon by the Customs were absurd. At the present time he thought there were about 2000 of these decisions, so it could be well understood that business people found it very hard at times— the Customs people find it hard at times—to decide under what headings of the tariff particular articles came. (Hear, hear.) The Tariff Commission had been sitting at Wellington, and he saw by the newspaper reports that the Premier said the sittings were to be held in camera. An assurance had, however, been given that the Tariff Bill was not for the purpose of placing extra taxation on the people, but for placing the present tariff on a better footing. The Executive had appointed several sub-com-mittees in connection with the various branches of business, such as soft goods, ironmongery, drugs, and so forth, and the recommendations of the sub-committees had been forwarded to the proper quarter in view of having the tariff placed on a simple basis for the future. THE ROADLESS NORTH. The roadless state of the North had not been lost sight of. The question had been repeatedly before the Chamber, and the,' committee had kept it right in front bo that

it should not bo neglected. (Hear, hear.) That committee had been in communication with their Parliamentary representatives, and the result was that a deputation waited upon Mr. Seddon. He (the speaker) regretted to say that so far there had been no definite result. Mr. Seddon had not bound himself to say anything or do anything. Probably when the Public Works Statement came down more would be heard of the subject. At the same time eyes could • not be shut to the fact tnat the northern part of the colony was in a most disgraceful condition in the matter of roads. Only last week the speaker's traveller had been unable to get further than Whangarei, and had to return from his jouruev. Even the mails could not get through. Practically theie were no roads, and it was dangerous 10 life and limb for anyone to go further North than Whangarei at the present time of year.

A COMPARISON. In that morning's paper it had been stated that the money spent on roads in the Cheviot Estate, in two years was £18,750. In the House one member had said that the cost had been £800 to place each setiler on the Cheviot Estate. The Hon. Mr. Montgomery in reply to this stated that that £800 per settler included roads and bridges that had been made on the estate. There was, therefore, no other conclusion to be arrived at but that each individual settler on the Cheviot Estate had cost the Government £800. Compare that with the North, which had been opened up 50 years ago. Before the foundation of the colony the North had been populated, and yet, at the present day, people could not go beyond even Whanj»erei with safety to life and limb. Nor could Her Majesty's mails be carried. That was a good reply to the Hon. Mr. Montgomery's statement as to what money had been spent on the Cheviot Estate taken in juxtaposition with the money that should nave been spent in the North. He (the speaker) had hopes that when the Public Works Statement came down a good sum would he found voted, not for the purpose of tinkering up the roads, but tor making a good, hard, metalled main trunk road through the North. (Hear, hear) The Chamber had tried to urge upon the Government the necessity of laying down some reliable scheme that could be worked out from yeer to year. If they did not like to vote all the money for one year, let certain moneys be spent, gradually carrying the road further and further north, and make it passable both summer and winter. (Hear, hear.)

SHOP ASSISTANTS BILL. The Chamber had not taken much notice oi the Shop Assistants Bill, but it had engaged the consideration of the Committee. Practically that Bill had been killed. But one honourable gentleman had tacked on an amendment to which he (the speaker) would like to refer. It was that banks and commercial people were not to work their clerks after five o'clock in the evening. If there were any people who were not overworked, or who had snort hours, and who were welltreated, he (Mr. Nathan) thought the warehousemen and clerks of wholesale houses were. Therefore he had looked upon the suggestion as a kind of slur upon wholesale houses. No public opinion had been expressed oil the matter, there had been no complaint from the clerks themselves that they were overworked, or anything else. They worked about seven hours a day, so it was rather a slur upon commercial firms that such an amendment should have been placed in the Bill. It gave the general public the opinion that the clerks, etc., were a class of people who were overworked and sweated. If that general public would make inquiries, he (the speaker) thought they would find that clerks and warehousemen were not hardly done by.

LOANS TO SETTLERS. There was only one other matter, went on Mr. Nathan, to which he would refer, but it was a very serious one. It affected everybody, whatever position they occupied, whether they were commercial men, agricultural, financial, or even if they lived upon their incomes. This matter was the Loans to Settlers Bill. This was a question that should be taken up by every institution in the colony that had the welfare of the colony at heart. If that Bill were studied carefully, as by business and commercial men, anyone could judge of its effects. Everyone with whom he (the speaker) had come in contact said the scheme would not pay. In commercial transactions, it was usual to look at all sides ; to see whether the thing was going to pay, whether the income from the transaction would be sufficient to pay working expenses and leave a little profit, and at the same time provide for any risks incident to the undertaking. Now anyone who had gone through the Loans to Settlers Billand he had spoken to a good many people about —must come to the conclusion that the margin between the amount paid and the amount obtained from the settler or the person to whom the money was lent, would never pay working expenses and cover losses likely to be incurred. He did not think any member of the chamber would like to lend money at a margin of 1 or a little over 1 per cent. The experience of a axeat many people, not alone in the Australian colonies but in other parts of the world, either in England or in foreign territories, had been that unless a fair -margin was obtained to cover risks sure to follow, a loss would be made on the transaction.

LOSS TO TAXPAYKRS. Loss on the transaction in this instance would mean loss to the taxpayers of the colony. (Hear.) Whatever losses accrued by reason of advances to settlers would have to be made up out of the consolidated revenue which, if it was not sufficient to meet the demand, naturally meant more taxation. Whether on goods, incomes, or land, the additional taxes would have to be levied. Therefore, it behoved everyone who had any interest in New Zealand, to take the matter into consideration, to read the Bill very carefully through, and to see if they, as business men, would enter into an undertaking like it, where the advantages were so much against them. He had prepared a proposition on the subject, for the purpose of bringing the matter before the Chamber. This he would move later on. EQUABLE TRADE. In conclusion, Mr. Nathan said, as far as he found it, trade, notwithstanding its quietude, had during the last quarter been fairly well maintained. Some small failures had taken place amongst the retail traders, but there nad been none very large—nothing to disturb the normal credit of the Northern district. (Hear, hear.) The wholesale houses, he thought, were showing discrimination in giving credit. This was based upon previous experience, and the result had been that the traders did not look for such accommodation as they had used to. Altogether trade was carried on on a far firmer basis than it had been, and the result was that there had been no failures of any moment. CONDEMNATORY RESOLUTION.

Mr. Nathan then proceeded to move the proposition of which he had spoken in relation to the Loans to Settlers Bill. He moved it because he considered the chairman should give an expression of opinion upon a matter that so vitally concerned the interest of the colony. The proposition was as follows : " That this Chamber disapproves of the Advances to Settlers Bill, being of opinion (1) that it iuvolves borrowing, thus increasing the already heavy liabilities of the colony ; (2) that the proportion proposed to be advanced to the value of property is too great; (3) the margin of interest is insufficient to cover working expenses and probable loss." In regard to the first clause Mr. Nathan said the introducers of the Bill had said it was not borrowing. That was a mere splitting of straws. It would be taken as borrowing all round, and eventually he (the speaker) thought Ministers would come to that way of thinking too. The proportion to be advanced had been discussed in the House the previous night. To a certain extent it had been settled that two thirds of the value should be lent on country properties, and half on town and suburban properties. That matter had been settled, and all that was left was to protest. As to the margin of interest he iMr. Nathan) had already spoken of that. Svery business man would agree with him that the margin between the amount that would have to be paid in London, which was not yet known, and the money required for raising the loan, and the price of 5 per cent, to settlers, was not sufficient to relieve the taxpayer from risk.

Mr. Graves Aickin seconded the proposition, and joined with the chairman in directing attention to the importance of the matter. New Zealand as a colony had fallen from the high position she had held for some time in the London money market. For some years there had beeu a nonborrowing policy. New Zealand had been held up as the model colony. Unfortunately the present Government had drawn back from that policy, and had initiated one the very opposite. They had gone into office ostensibly as non-borrowers. That had been held out by the late Mr / Balls,nee as the keystone of Liberalism. But all that policy had now been abandoned, and New Zealand was going into the London market as a borrowing colony. Ministers said it was not borrowing. If it was not, he (the speaker) would like to know what to call it. The Lower House had decided had not reached the Upper House—that £3,000,000 sterling should be borrowed, £1,500,000 in. one year, and £1,500,000 in another. No doubt the avowed object, to encourage the small settler, was a very good one. But the experience ot the past had shown what depreciation in property meant. Private individuals and financial institutions conducted their business fairly well, he thought, and the utmost care had been ahowu. Yet they had had losses. i Had the Government a more excellent

method than the gentlemen who had been engaged in the business in the past? He doubted it. It had been stated, too, that the money was to be lent by a non-political Board, and lent as a matter of business purely. That was the assertion of the Colonial Treasurer. He (Mr. Aickm) ventured to doubt that it would be so. Past experience taught how human all Governments were, and the present Government had accentuated the bitterness of party. It would be found that political influence would creep in. . The proposition was then carried unanimously, and ordered to be sent to the Colonial Treasurer and members of ' the Legislative Council, who have still to deal with the matter.

NORTHERN" ROADS. Mr. Carr then moved, "That this Chamber is of opinion that one of .the first duties of Government should be to provide country settlers with ready means of access so their land; that so far as the northern portion of the colony is concerned that successive Governments have in this respect utterly neglected it, and failed to provide such an indispensable means to settlement. We, therefore, uow strongly urge that the first consideration with the present Government should be to remedy the culpable neglect of their predecessors in office, bv making provision in the future for:—(1) Through communication either by railway or road between Auckland and Taranaki, thereby opening up millions of acres of excellent land for profitable cultivation; (2) removing the disabilities attached to those early settled districts north of Auckland, which are practically incessible at certain seasons of the year, by arranging for a comprehensive system of main road construction. Mr. Aiokin seconded. The case of the north in respect to the railway was that the money earmarked for the purpose (£1,000,000) had been filched. Mr. Mitclielson had asked the Government if they intended to refund this money, but the only reply he received was that to do so would mean borrowing. While the Government could borrow money to lend to settlers, they could'borrow none to refund that which had been filched. As to roads, there was nothing in the Middle Island to compare with the want of roads in the north.

Mr. S. Vaile supported the proposition. Business, he said, frequently took him north of Auckland, and he knew as well as any how neglected that district had been. The prevalent opinion was that the land north of Auckland was not good. There never was a greater mistake made. Had members of the House in the past done their duty there would have been a railway through to Mangonui. Had this been done, it would have done more for Auckland than they realised, and as far as the colony was concerned, it would have been one of the best paying sections of line. This and successive Governments ought to be stuck to until a fair share of money was spent in the North. He (Mr. Vaile) had advocated years ago opening up the country by a system of light railways. He still thought it would be about the best thing to do. Mr. John Burns also supported the proposition. This was also carried unanimously, and ordered to be forwarded to Wellington. GENERAL. Mr. John Hall was elected a member of the Executive Committee in the place of Mr. A. H. Nathan elected chairman.

Some discussion then took place as to the advisability of holding meetings more frequently, and The proceedings then terminated.