THE NEW ZEALAND EXCHANGE BANK

New Zealand Times, Volume LXVII, Issue 3441, 24 May 1898, Page 4

THE NEW ZEALAND EXCHANGE BANK

Mr Michael Flursoheim writes!—The number of applications by this time approaches 109. Abollt 3f> different trades ■We represented. It is uncertain yet when the first meeting will be called to discuss the by-laws and to prepare the organisation, election of the board, &o. It is probable that the name “ New Zealand Commercial Exchange” will be adopted. The name " Bank ” might perhaps create difficulties, because the Industrial and Provident Societies, Act excludes hanks. It is true that this is not a bank in the meaning of thh law, an institution dealing in money; hut simply an agency for mutual exchange between producers, traders and consumers; but it may be found advisable to avoid all such difficulties, especially as the name matters little. It is not astonishing that the applications come in rather slowly iu the beginning, as it takes long to make our business world see the immense advantages they will reap from the organisation. Especially the local manufacturers have not the remotest idea to what extent they will be benefited by the institution. As the exchange paper is not accepted in foreign countries, everybody who has accepted it will give the oreference to the products of our local industry. The small manufacturer especially is now very much handicapped. Our merchants prefer the imported article, and even if they consent to take along the samples of the local producer they ds not push them; and as he Cannot afford to send out his own traveller he is in a very precarious position. I give a quotation from a letter which just reached me from the country:—"A short time ago, after the Wellington exhibition closed, the chairman remarked on the astonishment hh and others experienced on seeing the variety and quantity of colonial products of every-day use there were already being made, and how little generally was known about them. I dropped a letter right away to the effect that it was the rule with commercial travellers not to carry samples of oolonialmsde goods, consequently neither storekeepers nor consumers outside the immediate range of the manufactory could know about such goods; and it may be too expensive for the owners or any company to send travellers throughout the colony to lake orders for one or a few only of colonialmade articles, t suggested that the Industrial Association should endeavour to get the large wholesale traders to furnish their travellers with sets of colonial-made products or,catalogue's of bulky goods and carry these' along with their samples of imported goods.”

The Industrial Association would find the Exchange Bank a powerful ally in their work. If tthe merchants could not be made to fall into line, nothing would be easier than to start permanent exhibitions in every centre where all the colonial producers could be represented and where orders Would be taken for them. Soon the merchants would find that they made a great mistake in keeping aloof, but it might be too late. Our agitation in the provinces has not yet begun, because the intention is to first obtain enough Wellington adhesions to begin here, though provincial members are at once welcome. New Zealanders ought to give the preference to their own manufactures, for the local manufacturer is also a local consumer, which the foreigner is not, and it is quite certain that a reduction of our outside purchases will not at all diminish our exports of raw materials. The English or German wool buyer never inquires which country buys most of English or German manufactures; all he wants to know is which wool is cheapest and best. Instead of obtaining goods in payment for our exports, we would receive money to pay our indebtedness with, no small consideration certainly in a country which owes 60 million pounds for the debts of the State, the public bodies, and for mortgage-! alone, not counting other kinds of indebtedness, which is .£350 for each family, an amount increasing at the rate of one million a year, or £7 for each family.

Is bankruptcy such a pleasant prospect, and is independence such a trifle that it should not be worth our while to patronise our own products where we can ? I well know there is no use relying on the patriotism of the trader and consumer; we must appeal to his self-interest and this is what the new institution tries to accomplish. The simple fact that everyone prefers to pay with his goods or services, on which he makes a good profit, to paying with cash, will rapidly increase the circle of members after the hank is once in operation. E very member will become a propagandist, and as he cannot get the foreign maker to join, he will give the preference to the local manufacturer who has joined or who will join when he is made to see that this is the condition on which he obtains the order. Exchange banking will do a hundred times as much for local manufacturers as the heaviest protective tariff.