THE OTAGO DAILY TIMES THURSDAY, MARCH 31, 1892.

Otago Daily Times, Issue 9389, 31 March 1892, Page 2

THE OTAGO DAILY TIMES THURSDAY, MARCH 31, 1892.

t From all accounts, private as well as public, the financial position of Victoria does not seem to be improving, and somewhat anxious inquiries are beginning to be made as to the effect which the collapse in that colony is likely to have on the New Zealaud : money market. The question is one which cannot be answered with ■ any absolute certainty, but on the 1 whole we feel justified in saying that the Victoria money troubles are not > likely seriously to affect this colony, at any rate for a long time to come. From a review of their banking policy during last year, we come to the conclusion | that the Australian colonies were to a i large extent making use of New , Zealand money, through .(he agency of the banks doing business in°both colonies, during that period. During 1891 the bank advances in Victoria amounted to the enormous sum of L 1.948,707 more than during the previous year. In New South Wales the result was very similar that colony having leaned upon the banks to a total of L 1,791 987 more than in tlie year preceding.' In New Zealand, on the other hand, an exactly opposite process had been going on, the bank advances having decreased to the extent of L 494 687 while the deposits increased to 1.409,403, making a total decrease of L 903.690 in the liability of the public to the bank. We desire to warn our readers that these figures, which we extract froa: a speech made by the chairman of the Chamber of Commerce in Auckland, should not be taken for more than they are worth. When bank advances grow and deposits diminish it may often be the case that the demands of an increased trade, the bona fide requirements of increased production, may cause a progressive community to lean temporarily upou bank resources. Stagnation may produce a result apparently satisfactory to the careless observer, but which to the more wary financial prophet merely sets up danger signals all along the line. When bank deposits grow aud advances diminish we are not inapt to suppose that it it the superfluous wealth of the community which enables it to keep up its money iv the banks' coffers, and at the same time to dispense with bank assistance. Experience has, however shown that such conclusions may be altogether unwarranted. Depositors may and often do place their money in the banks because they see no suitable outlet in business by which they could hope to earn more than the bank interest of 4| per cent. On the other hand when the possessor of capital, large or small, invests his money in private enterprise which he controls himself, he not unusually leans on some financial institution for such sums as maybe needed to supplement his own capital. It will be seen therefore that the depositor as a rule not only in- ' creases deposits but diminishes advances. ' Having regard however to the effect , of the financial crisis in Victoria upon j

our money mavket in this colony, wo desire to point out that the stringency of the money raarkot in Australia has already been largely discounted. Thero are three Australian banks doing business in the Oolony of New Zealand, and in two of them at any rate it ia noteable that the New Zealand business is subordinate to the larger business in Australia. With the Bank of New South Wales for instance the New Zealaud deposits exceed the New Zealand advances by L 343/732; in the Union Bank of Australia, the deposits exceed the advances by L 724.846. The Bank of Australasia alone advances more than the deposits, the excess bein# L 20,353. It will be seen from the above tbat New Zealand capital has been drained away and spent iD Australia, through the agency of the banks which conduct their larger operations there, to the extent of a little over a million of money. We are-justified, therefore, in assuming that, in anticipation of the stringency of the money market in Australia, steps had been taken to strengthen it at our expense during last year, We may mention incidentally that the advances exceed the deposits in the three local banks to the following amounts -. Bank of New Zealand, Ll, 137,108Colonial Bank, L 687.805; National Bank, L 529,942. There have been several significant facts made public with regard to the finances of Victoria since we last dealt with the subject. First of all one million of Treasury bills havo been successfully floated, and it is proposed to endeavour to place upon the market another million of theso bills. The money obtained fhrough these temporary measures will of course affect the market and give it relief to a considerable extent. The relief, however, will be only temporary : Treasury bills like other accommodation bills have a nasty knack of falling due. Struggling Governments, like struggling traders, have lo keep the due date of their obligations steadily in view. It appears that the Metropolitan Board of Works have successfully floated their loan of five millions, and the circulation of this large sum, mostly through the ranks of labour, must have a great effect in enabling workmen and others to keep up their payments to building societies, pay interest to mortgage companies*, and perhaps pay calls on shares, thereby strengthening enormously the whole financial fabric. On the other haud there are two matters which will tend to detract from the strength so gained. We learn by cable that Scotch depositors in financial institutions in Melbourne are becoming seriously alarmed for the safety of their moneys. Now, the fear of withdrawal on a large scale is almost as bad as the actual withdrawal. The financial prosperity of Victoria is almost entirely built up on her large proportion of the seventy-five millions of money which we pointed out the other day had been advanced by Great Britain to Australia during the last five years. No small portion of this vast sum came from Scotland, and the withdrawal of auy considerable portion of :it under the influence of anything like panic would result in a terrible collapse. Again the' roar for retrenchment has been begun in Victoria, and is likely from all accounts to increase; in force. However excellent and desirable retrenchment may be, however wholesome and even necessary in nurturing a sound finance, it must be admitted that its first effects are usually to intensify those evils which it proposes ultimately to redress. We know by experience in New Zealand that such must be the case. of the discharged and reduced servants of the State a certain number leave the country, others economise in their private expenditure, while some few perhaps throw themselves on public benevolence. The immediate effect of public retrenchment must necessarily be to contract trade, diminish the output of manufactories, and seriously diminish the opportunities of labour. Having regard then to these causes, it will not be surprising if we find both capital and population returning in considerable quantities to this colony, which has passed through its time of penury. It will not, therefore, be unsafe to prophesy that the centrifugal and centripetal forces will largely counteract each other, and the result, as far as we are concerned, will be something like an equilibrium.

, The Minister for Lands (the Hon. John M'Kenzie) left Dunedin for Shag Point yesterday afternoon, and will probably return to town on Monday next. The Postmaster-general (the Hon. J. G. , Ward) returned to InvercargiU from Dunedin' on Tuesday night. A special meeting of the Hospital Trustees '▼as held yesterday gafternoon, when all the members were present with the exception of Mr Myers. A lengthy discussion took place on the reorganisation of the nursing staff, and eventuaUy the whole matter was referred to the House Committee to report. It was stated that the expenses of the institution for the forthcoming year were estimated at L 5400, and it was decided to requisition the Hospital Board for that amount. The compensation case, John Borton v. the Minister for Public Works, was resumed at the Supreme Court yesterday morning, and during the day the following witnesses were called and gave evidence iv support of the claimants' case • Robert Hay (civil engineer), W. Sutherland, jun. (farmer, Duntroon), AY. Reid (platelayer, Maerewhenua), F. M. Allen (analyst, Dunedin), James Craig (builder, Oamaru), Thomas Brydone (superintendent of the N.Z. and A.L Company), and William Gardiner (farmer' Papm station), recaUed. Up to the present time 15 witnesses have been called and examined ; there are still several witnesses for the claimant, and a considerable number will be called for the defence. It is probable the ease tor the defence will be opened this morning, but there is no prospect of the case closing before Friday afternoon or evening. The court adjourned at 5.30 p.m. yesterday until half-past 10 o clock this morning. The special jury ease Sutherland v. Sutherland Manure Company, which was to have come on for hearing to-day, has been postponed until the next civil sessions of the Supreme Court. Sir R. Stout yesterday mentioned that an adjournment had been agreed to between the parties, and his Honor Mr Justice Williams directed that the case should stand over, and ordered the discharge of the special jurors, who will, therefore, not be required to attend the court to-day. It occasionally happens that the applications that come before the Land Board at its weekly meetings are supported by peculiar reasons, and a request that was dealt with by that body yesterday was based upon grounds that justif jits right to take a high place in regard to originality. The application had been forwarded in the first instance to the Minister for Lands, and was prefaced by the observation that although the applicant was a stranger to the Minister he was nevertheless his countryman. The body of the letter consisted of an autobiographical sketch of the writer, who stated that he belonged to an ancient Scottish family • ' and further, that in the goldfields days he had ■ como to the colony "in search of a fortune i which," he added, " he had not been fortunate enough to find." The arguments advanced by the applicant were deemed by the board to be of sufficient weight to entitle his request to favourable consideration. i

Commander Pike, of H.M.S. Tauranga, informed a representative of the New Zealand Times that the defences of Wellington were fairly perfect, and kept in first-class order. The torpedo arrangements were very good, and the scheme generally should be effective to repel any single cruiser. There was one point he had indicated to the Minister of Defence which would doubtless be strengthened. Commander Pike considers the naval volunteers of the colony an efficient force, able,, so far as he has seen, to prevent a hostile lauding. The auxiliary squadron exceed slightly in speed and armament the kind of vessel bargained for, and can hold their own against any second-class cruisers On a pinch they can steam 19 knots, and could beat the Orlando in moderate weather. It is intended always to keep two boats iv Ne w Zealand waters, but not the same steamers. •

In connection with the default of the New Plymouth Harbour Board, the Premier has received intimation that at a meeting of bondholders held in London the following resolutions were passed :—'«(1) That this meeting have heard with regret the letter from the Premier of New Zealand, and that in their opinion the treatment received by the subscribers to the New Plymouth Harbour Board Loan justifies an opposition to the quotation of any New Zealand loan. (2) That this resolution be communicated to the Council of Foreign Bondholders, and that they be requested to give the bondholders their valuable support."

Joseph Roberts, a brother of the noted Jonathan Roberts, who is already committed for trial on a charge of larceny, was sentenced to six months' imprisonment at Hastings last week for stealing a saddle, bridle, and other gear. The defence set up by Roberts was that he was suffering from delirium tremens.

Mrß. Short is actively engaged in pushing his candidature for a seat on the directorate of the Australian Mutual Provident Society. He is a strong opponent of the proposal to open a branch of the association in London. We are informed that enthusiastic meetings were held by Mr Short in Melbourne on Monday and Tuesday. Mr Short was the means of a large number of New Zealand people taking policies m the A.M.P., and his prospects of success will be gratifying to very many of them. A tea meeting was held in the newly* erected Kaikorai Baptist Church on Tuesday night to celebrate the opening of the church, which was nicely decorated for the occasion with mottoes and flowers. In the early part of the evening a large number of persons partook of tea in the church. A public meeting was subsequently held and presided over by the Rev. A. North. Mr A. S. Stewart read a report, from which it I appeared that the building was opened free of i debt. It was, however, proposed to' build rooms for Sunday school purposes at the rear of the church, and about Ll2O would be required to carry out the proposal. It was estimated that with goods for a sale of work and subscriptions already promised about L6O would be available for the extension of the church. Addresses were given by the Revs Hudson and Sutherland, Messrs Longworth' J. Stewart, W. Ings, J. M'Laren, Russell, R. N. Adams, and F. Graham. The Hanover street Church choir sang several anthems during the evening, Mr Walker contributed a solo, and Mr H. G. Moore presided at the organ.' An excellent entertainment was given before a crowded audience at the Foresters' HaU, Port Chalmers, yesterday evening by the Mohican Minstrels, in aid of the building fund of the workmen's library. Mr B. G. Allen, president of the society, was in the chair. In the first part Messrs Parsons and Grigg were heard to advantage in the ballads rendered by them, Master Popham and Mr Rowcliffe delighted the audience by their dancing, while the comic singing of Messrs Sharp and Vanse met with general approval, and the jokes and witticisms ..f l-ho cornermen were greatly applauded. Mr E. Vickery, the accompanist, also deserves a word of praise. In the second part Mr Harry Sharp sang the character song "O'er the bridge" in good style; while Mr C.Perry's violin solo was deservedly applauded. Master Popham danced an Irish jig, and a rattling farce brought the entertainment to a close. Messrs Dalgety and Co. are advised tjy cable from their London offlce that the directors have declared an interim dividend of 4s per share, being at the rate of 8 per cent, per annum, payable on the 20th April. ' • At the National Insurance Company's office yesterday morning, Mr Cargill, on behalf of the staff, presented Mr A. Hill Jack, the general manager, with a beautifully illuminated address on the eve of his departure for London. In making the presentation Mr'Cargill referred to the harmonious relations that had invariably existed between Mr Jack and the members of his staff, and expressed a hope that he would meet every happiness and success in his new home. Mr Jack feelingly responded. The full programme is published in another column of Mr Snazelle's opening entertainment in the Princess Theatre on Friday evening. A perusal of it will g^ve an idea of the varied and attractive character of the entertainment. Both Mr and Miss Snazelle are finished vocalists, and they receive valuable assistance from Mr H. Hawkins as pianist and organist. The limelight views are said to be quite sufficient to supply an evening's entertainment, and critics pronounce the views of picturesque scenery and chaste statuary as one of the finest collections shown.

A public meeting in connection with the New MIM*S# lrt For- ei SQ Missionary Society wm TW;ff of' S ? vem »S in the Hanover Itreet Baptist Church, when Miss Arnold, Zenana missionary, will deliver an address. ienana Ar^iTfe 0* % D«nedin branch of the Educational Institute will be held on Saturday, when a paper will be read on " The Classifi CaTZ'l^jE°m ftl?.en^an^.? ayment of Teachers " Cm^,+v w^l °l Gl'?/it Hlll-i. station, Mackenzie orthe y26ul Upi"x S°ld by aUCtl°n at dWWnw* ,-^MAadr^i T? dd> for rtthe New Ealand Loan and Mercantile Agency Company, will hold a sale of sheep at Balclutha on Friday. On the 7th prox he wiU hold a sale at"Heriot, on the 14th at Clinton, and on the 22nd at Kyeburn TUM 8*? Jan"j?.W. Wilson and Co-' will sell at n„ ll th%T Frlday sh<-ep cattle, horses, pigs, &c. On the Bth prox. he wiU sell sheep from the Manuka Island station. n ng R f shareholders in the Mount Hiehlav ■ssi Bg_naxv^ta^»*^«w thKrnYng SBedding WJU h°ld a Sale °f »W>« in^L-* normoUß shipment of opposum rugs and JfcSw fUri.r appare T l fl* as landed ex Mararol, consigned to Messrs Lone and Co., who sell them by public auction on Saturday next. Opposum rugs are now so frequently used in place of blankets or counterpanes that they are sure to meet with a ready sale.—[Advt.] John Hislop, Watchmaker and Jeweller, 74 Princes street. The oldest established house in wl£v,J? c?3 lra* of ali -? ind?* Good-assortment ffifiUKM? JeweUeiy- Speotacles to Marriage Presents.-*.}, and T. Young notify the amyal of three further shipments of newgoods Their stock of novelties is the largest in the colony, their goods the best, and their prices the lowest. Inspection invited.—[Advt ] Eden George and Co. (Limited), the leading photographers of Dunedin, who produce by far the best work inNew Zealand, take one dozen beautifully enamelled cabinets in any position or style, tor 15s. One price list adopted, and no extra charges are made to visitors from the country.— Established over a quarter of a century. Of other soda waters that have come under our notice and take a very high place in Australasia, we would be remiss if we did not mention that of Messrs Thomson and Cj. Dunedin.—Brewers Journal, 1890.—rADVT.l brewers