GOVERNMENT FINANCE

New Zealand Herald, Volume LXXIV, Issue 22820, 30 August 1937, Page 5

GOVERNMENT FINANCE

HARMFUL SPENDING

CURTAILMENT NEEDED BANK CHAIRMAN'S WARNING A warning that Governments should curtail their expenditure as far as possible to prevent another depression was voiced by Mr. J. L. Weill), chairman of directors of the Commercial Bank of Australia, Limited, at the annual meeting in Melbourne recently. "A year ago recovery was well on its way and spreading," said Mr. Webb. "Now it has reached the stage where strong upward forces dominate world economy and threaten even to produce, in some directions, a too rapid advance ill costs and prices suggestive of boom conditions. As far as Government finance is concerned not only has the need for extraordinary spending to stimulate general business activity disappeared, but such spending may be directly harmful to a healthy development. "The improved conditions now existing in the primary industries have substantially reduced the necessity for Government assistance to farmers, and a continuance of the unemployment tax is a burden on all sections of the community which is now quite unwarranted. "The unsettled conditions existing overseas have made it essential for Great Britain and the Empire* to embark upon a policy of rearmament, the cost of which as yet can be only roughly estimated. There can be no doubt that it will be substantial, and it is certain that the Dominions will bo called upon to bear a share of the general preparedness. This emergency defence programme Is an additional and important reason, why unnecessary expenditure should be curtailed as far as possible if we are to avoid the very conditions which made the recent depression period so difficult for Australia. "The bank has shared in the steady business recovery apparent in the period under review, and, as indicated m the balance-sheet, its strong financial position lias been further consolidated. Provided we have a continuance of stability in Government the indications are distinctly favourable for a steady improvement in trade and industrial conditions during the coming year." TIN PRODUCTION HIGHER WORLD TOTAL RISE IN CONSUMPTION The world production of tin in the first five months of the current year totalled 75,477 tons, of which 87 per cent was produced by the countries signatory to the International Tin Agreement. World production for the year ended May, 1937, was 184,818 tons, against 160,337 tons the preceding year. The corresponding statistics of tin consumption lor these periods were respectively 175,627 tons and 156,329 tons.

The proportion of the world's tin used in the United States increased from 421 per cent in the year ended May, 1030, to 48.J ]>er cent in the year ended May, 1937. The consumption of tin in the American tinplate industry increased by 35 per cent to 40,200 tons; tin used for bearing metals by 1(3 per cent to 3810 tons; tin in solder by 14 per cent to 12,750 tons; tin in bronze, collapsible tubes and foil by 21 per cent to 12,770 tons; and tin for all other uses in the United States increased by 33 per cent to 10,100 tons. The world output of tinplate totalled 4,028,000 tons in the year ended May, 1937, against 3,233,000 tons in the preceding year. The output of this industry has increased by more than .00 per cent, compared with the average annual output for the period 19251929. The output of the world motor industry amounted to 6,132,000 vehicles in the year ended May, 1937, this figure being only 150,000 lower than the 1929 record, PRICES OF METALS TIN EASIER AGAIN LONDON', August 27 Following are to-dav's quotations an the London metal market, compared with those of August 26: Aug. 27 Aug. 20 Per ton Per ton £sd £ s d Copper, stan., spot 55 7 (J 55 7 fl Copper, stall., 3 mos. 55 11 lO'/j 55 13 I\/ a Copper, electrolytic 01 lO 0* 02 0 0 to to 02 10 0 03 0 0 Copper, elect., wire bars .. 02 10 0 03 0 0 Lead, soft, spot . . 21 10 10% 21 10 1«»/, Lead, soft, forward 21 10 10'/, 21 17 0 Spelter, spot ~ 23 1 10'/i 23 1 luVa Spelter, forwurd .. 23 3 IJ4 23 1 lo'/i Tin, stall., spot .. 250 17 0 201 0 0 Tin, stall., 3 mos. . 258 17 0 200 10 3 Quotations for other metals, with last week's prices in parentheses, are: —Pig iron: Home trade, £u Is (£5 Is). Antimony: British, £93 (£B3). Molybdenite: £2 3s Od (£2 Os Od) a unit. Wolfram: £5 Os 5d (£4 12s Od) ii unit.

RAROTONGAN FRUIT LAST SHIPMENT OF SEASON [nv tkijKchai'h—riiKss association] WELLINGTON, Saturday The correspondent of the United Press Association, writing from Rarotonga, states that tho fruit shipment which left Rarotonga on August 21 comprised approximately 15,160 eases of oranges, approximately :3;">00 eases of bananas, and approximately 8544 boxes of tomatoes. Tho prices paid lor the bananas were Ok 8d a case f.0.b., and .'3s a case for fruit alone on the wharf. The prices for the tomatoes wero 2s a-box for tlie fruit alone on the wharf and 4s Od f.o.b. Tho Rarotongan orange season is now finished, and no further shipments are to bo mado from Karotonga until next year. COTTON, RUBBER, COPRA, ETC. (Received August 20, 5.5 p.m.) LONDON, August 28 (Quotations on August 21 in parentheses.) Cotton. —Spot, 5.63 d (G.7Bd) a lb.; September delivery, 5.40(1 (6.01 d). Rubber. —Para, 9id (9Jd) a lb.; plantation and smoked, '8 15-16(1 (83d). Jute. —September-October shipments, £2l) 12s '.3d (£'2o 8s Od) a ton. Copra. September-October shipments, South Sea, .sun-dried, £l4 to London anil Rotterdam (£l4 12s Gd) a ton; South Sea, smoked, £l4 to Marseilles and Genoa (£l4. 10s); plantation, Rabaul, hot air dried, £l4 15s to London and Rotterdam (£ls 7s 6d). Linseed Oil.—£3l 15s (£3l 15s) a ton. Turpentine.—3ss 9d (35s 9d) a cwt. WHOLESALE EGG PRICES Tho Auckland Egg Marketing Committee announces that wholesale egg prices ' are unchanged as follows: Hen: First grade, Is 4id a dozen; 13 grade. Is 2}d; C grade, Is I}d. Duck: First grade, Is 4Jd; 13 grade, Is 2jd; C grade, Is ljd; Country storekeepers' minimum buying prices for first grade eggs are:—Hen: Is a dozen; duck: lii.