NOTES AND COMMENTS.

New Zealand Herald, Volume XXXVI, Issue 11243, 12 December 1899, Page 4

NOTES AND COMMENTS.

The advance in the Bank of England rate to six per cent, is (the Sydney Morning Herald points out) a matter of far-reaching importance. As the trade of the world grows and London remains the chief monetary centre, interest in the bank discount rate increases. . Dear money in Europe makes business more difficult and hazardous

for ill needy merchants. Everyone, in f«t, nosition when money rises in value ex srsstS- 1 — Rubles itself. Manufacturers in Europe who recognise the scarcity of wool and the home to colonists the significance to them o the rise in the bank rate. Money after a is governed by precisely the same laws of supply and demand as any other commodity, both as a medium of exchange and as a loan instrument. That as a medium of exchang it is abundant is clear, because it is 18 pa cent, cheaper than the articles it buy . That as a loan instrument it » scarce s self-evident, when it is so dear that six per cent, is charged for it instead of two to three per cent., the average rate. How long these conditions will prevail is a matte of very great import to the mercantile as well as to 'the political world. Though the London market usually eases considerably m the first quarter of the year, the worlds conditions do not favour an early return of easier money. The requirements of the British Government for war purposes may dram resources then usually available for business needs. If the war continues it is difficult to see how it can be otherwise. Then there is no sign of slackening trade. And while this continues brisk there will be a continued demand for money, which must tend to mamtain the strain. Almost inevitably, bowever, the high rates will not.merely prevent any growth of the requirements of money for business purposes, but will restrict it, especially for everything of a speculative character. That will tend to produce case. Even without the Transvaal production, the gold mines of the world are yielding fully £50,000,000 per annum, as against half that amount 10 years ago—quite enough when properly distributed to supplement all the gold standard currencies of the world at any moderate measure of increase. The rate for long-dated loans has not risen in any way corresponding to the upward movement of money for business purposes. New South Wales three per cents are quoted at par. They have not been more than £3i higher. Nevertheless, any attempt to borrow either on Treasury bills for a short term, or cn inscribed stock with a long currency, would be very expensive. Therefore, with a.i uncertain money market in London, for the im • mediate future, it is incumbent on the Government (concludes the Herald) to ho'd itself free of all necessity to borrow for pome time to come.

The arrival of the Australian Lancers (says the Caps Times) brings no great reinforcement of the British army, if such we may call the few regiments' holding defensive positions in Natal and the Cape Colony. Tho addition of 75 men or thereabouts to the fighting strength is not of very much account, even though every man of them were a veritable Paladin in prowess and valour. It was not indeed because of the number of the contingent or of its distinction! in personal quality that citizens hastened to give it an enthusiastic welcome, and to speed it on its way to the train with heartiest demonstrations of goodwill, 'lie Australian Lancers come to us as a symbol of something greater and deeper and more durable than any display of military power or of patriotic ardour. Their presence represents in concrete form the Imperial idea, never Defore perhaps expressed with such forcefulncss and vigour as at the present juncture in the history of Greater Britain. " What business," the Daily Chronicle lately asked, " what business has New Zealand to interfere in a quarrel not her own?" What business, wo might reply, has the httle-Eng-lander, whether in press or parliament, to cut New Zealand or any other self-governing colony away from the golden chain of sympathy and vital union by which the whole Empire is held together? It is a chain as light as silk; and' in proportion to its lightness is its tenacity. The growth cf tho Imperial idea is the political ohenomenon most characteristic of the Victorian age. Disraeli was perhaps the first British statesman to base a policy on the conception of England as an Imperial world-power, interested above all things in the maintenance and development of a vast colonial and Indian Empire. The liberal chiefs of the generation which followed Palmernton lad absolutely 110 grasp of this conception. If it ever touched the surface of their ir.inds it slid off like water from the oleaginous hide of a sea-lion. A common top.Q iff their discussions of the relations of the tier Country with her dependencies was the prediction that one day, not far distant, the. greater colonies would " cut the painter" and set up as independent nations 011 their own account. And so they would undoubtedly had the policy of indifference and discouragement been persisted in; had not the growth of the Imperial idea changed all that and introduced into the world a national scheme, which we call Imperial for want of a better word, but which in essence and truth is simply an extension of the nation 011 the lines of perfect freedom in place of the subjection involved in the old notion of Empire. It' is a grand and imposing spectacle this flocking of the sons of England to her side in the hour of need. There are but few who come, it is true; but the will to como was the will of all; few were accepted because it sufficed that the will should be thus proved. When, if ever, the need is sorer, we know by this readiness of service what may bo reckoned upon.

Colonel J. C. Hoad, of Victoria, who has been appointed to the .command of the Australian contingents in South Africa, lias always taken a keen interest in military matters. In the early days of the cadet movement in the southern colony he took an active part in the work of organisation, and was originally in the first battalion. In 1886 he joined the permanent staff as staff officer of cadets, and three months later was appointed adjutant to the Mounted Rifles. He gained his captaincy in March 1887, and in 1889 was promoted to the rank of major. In March, 1895, he was gazetted lieutenant-colonel, and in April of the same year was appointed A.A.G. and chief stuff officer of the military forces in Victoria, being tho first colonial officer to hold the position. His appointment as colonel followed in April of this year. In eddition to his other duties, Coloned Hoad acted as superintendent of military instruction, and represented the Victorian headquarters staff at the Queens Jubilee celebrations in London. He was on two occasions sent to London-in 1890 and 1897-and was for some time attached to the staffs of General Sir Evelyn Wood, Field-Marshal Lord Roberts, Major-General Lord Paul Methuen, and General H.R.H. the Duke of Oonnaught. After careful consideration oi Victorian officers should be sent in accordance with the offer of the Imperial Government to allow extra officers a permit to go to South Africa for instruction, Colonel Hoad was selected. He joined the Medic at Adelaide, and when a question arose as to who should be in charge of the united military forces on board the Medic, the Australian Governments decided that as he ' was the senior officer on board he should be appointed to the supreme command. The Imperial Government has evi-

dently ratified this appointment, ' and, I was at first suggested, formed a p Ure i y f Australian contingent for service against iff the Boers and their rebel sympathisers in W Afrikanderland. • -J&j ————— '-fcj! A serious British reverse has taken Tilace in Northern Cape Colony,' near Stormberg, where a force under'J General Gntacrq was surprised by the i'l enemy (whose strength had been underestimated) and compelled to retreat" -■' The British losses are believed to be heavy' and 290 Irish Rifles and 306 Xorthumberlands are missing. General Gatacre was 1 misled by the guides, the enemy occupying an impregnable position. The disaster will probably intensify the disloyalty among the Gape Dutch. The Boers Lave met with a $ serious reverse at Kimberkv but no details W of the encounter have been received. The Boer kopjes north of Modder River have been shelled by the naval guns. The New i'l Zealanders took part in a skirmish £ at Naauwpoort, in Northern Cap 5 Colony, five Boers being killed.§ 3 The '7th Hussars, with a body of mounted ® police, surprised a laager on the Maricj -.f River, on the western border of the Trans, vaal. Twenty-eight Boers were wounded. ft Further fighting is reported from Natal, where a British force, under Major-General Si Hunter, surprised the enemy at Lombards- V 3 kop, destroying a 6in gun and howitzer and ai capturing a Maxim. One of (he British .. was killed and one wounded. The British climbed the hill like lizards, and at the'*! sight of the bayonets the enemy were seized II with panic. The 19th Hussars have burned IS a Boer laager near Bcstcr's. '