FINANCIAL STRINGENCY

New Zealand Times, Volume XLVII, Issue 10955, 18 July 1921, Page 4

FINANCIAL STRINGENCY

EFFECT ON LOCAL BODIES SEIIIOUS CHECK 'TO IMPORTANT UNDERTAKINGS. UNABLE TO RAISE MONEYS. GOVERNMENT-GUARANTEED LOANS? Tlie financial stringency and the unexpected closing of sources from which assistance could under normal conditions, bo expected, is having a serious effect upon the position of several loca l bodies in the Dominion. In some instances they hare found themselves seriously embarrassed, and unless some monetary assistance is secured work on important undertakings will hare to bo suspended and complications, it is said, will assuredly follow. HYDRO-ELECTRIC SCHEMES. Some of the hydro-electric boards in the Dominion find the position most disconcerting. While they realise that the Government as “up against it,” and that they form but a section of the general community suffering from the prevailing tightness, they hope that the national importance pf their work, the relief it should bring in its train, added to the impetus, it should give to industry generally, will secure for them special treatment. ADVANCES FROM PUBLIC TRUST. IMPROVED POSITION AWAITED. The Public Trust Department has been the recipient of many applications or assistance. While, it is said, every, thing possible has been done towards assisting local bodies, there is a limit to the resources of the department,, and in several instances the Public Trustee has been reluctantly compelled to decline applications for loans. It has been clearly explained to the applicants that refusals .have been due entirely to the financial stringency, and that it was hoped a better £tate_ of things woufld exist before long. It ha® been pointed out, however, that there is little indication that the cloud will lift for another six months, and the Public Trustee has stated that there does not appear to be any chance of material relief being afforded until after next December. In the meantime applications are_ being filed, and willtje carefully considered as soon as the position eases. AN ANXIOUS TIME. LONDON MARKET UNRESPONSIVE. “It is an anxious time with some — shall I say many local bodies,” said a prominent public man to a, “Times” representative when the general financial stringency was being discussed, “and the position has been rendered even mare difficult by the embargo, sought to be imposed regarding State giarantees of loans to local bodies. The ominion loan was not ‘rushed’ in London, and the comparatively large underwriters’ portion shows that the money shortage is affecting the greater part of the whole world. The war has brought many changes, and one of these is that excluding paper credits—for some of Britain’s advanced have been on little else—England toiday has enormous financial obligations. When, she resumes her place as a great exporting nation, when her financial relations (especially with the United States) improve, and when exchanges are readjusted, the financial position will react something like normality again, and the oversea Dominions will come into their own; hut at present the position m far from satisfactory.” “There is no use ‘getting the wind up,’ as they say,” he continued. "We must just cut our cloth according to the size of the financial garment hard times compels us to wear; we must also be optimistic We must work harder, produce more, have fewer temporary stoppages and strikes, and generally realise that such depression as we are suffering from at present,can only be overcome by rolling up .our sleeves, facing the difficulty, and fighting it manfully.”