THE OTAGO DAILY TIMES FRIDAY, SEPTEMBER 6, 1912 SOUND ADVICE.

Otago Daily Times, Issue 15552, 6 September 1912, Page 4

THE OTAGO DAILY TIMES FRIDAY, SEPTEMBER 6, 1912 SOUND ADVICE.

Tub full report of the annual meeting , of the National Bank of New Zealand is , now being circulated in Hie Dominion,., and it merits general attention by reason of the appositcness and sanity of the observations which the chairman, Mr,, •Jlobcrt Logan, directed to the trade con-. ditions nnd financial situation in this country. Mr Logan is impressed, as most persons of experience and sound judgment, with the need for the exercise of caution on the part of those who arc administering the affairs of the State, and ! with the importance of the restoration of the trade equilibrium. The fact that* whereas in 1910-11 tlio exports from tlio |

Dominion exceeded the imports by over

four millions sterling, tho imports exceeded the exports by nearly threequarters of a million in the following year docs not in his opinion furnish nny cause for anxiety, provided—and the reservation is of interest—tho obvious lesson is deduced from it. " Opening im new land, large imports, aud commercial enterprise call for heavy amounts ot money," lie says, "nnd it is evident a: regards traders that they arc leaning on their bankers to carry heavy stocks to .1 greater extent than before. A pause ir expenditure is, in my opinion." Mr Logan goes on, "eminently desirable—a smallci amount of imports and less borrowiiif both by Uovcrnmcnt and by the tradirj community—no matter how desirable th< objects on which the money is to be spcnl may appear to be." This caution is re peated in other words elsewhere in Mi Logan's speech, when he urges " that iir. ports should be restricted so that it shouli not be necessary to carry such hcavj stocks of manufactured articles, that evei in the matter of breaking up large eslatoi and bringing new land under eullivatjoi due regard should be paid to the lif]ni< resources of the community, and lint m unnecessary expenditure by Oovermncn should be undertaken." When a noli of warning of this kind has been slrucl in the Dominion it has been suggested I); certain critics that it has been inspire* by political bias. What gives weight l( Mr Logan's utterance is that be lives ii 11 n atmosphere thai i 3 remote from lb clash of the politics of the Dominion, am tjhat his opinions arc those of a dis passionate aud intelligent outsider win views the conditions of the Dominion Iron afar and who speaks, moreover, with th authority of the head of an iiistiluUoi the interests ot which arc wrapped u| with those of the. Dominion itself, am which carries on an increasingly profitabl business in the Dominion. The operation of tlio.Jknk have been conducted on : soundly conservative basis, and the result have been of a character that must hnv been highly gratifying to shareholder; The gross profits for the past year wcr £222,230, reduced by the ordinary charge of management to £120,759. Out of' th; appropriations totalling £29,500 wer niadc to the premises account (whic seems to stand at a very low figure), to reserve for depreciation of investments for a bonus to the stall, and to th officers' pension. funds, and litis left profit available for distribution of £91,25S When it is said thai five short years ag the corresponding balance was £64,90: nnd that tho amount absorbed in div dends has increased in this period froi £38,750 to £65,0C0, while the rcserv fund has been strengthened until it no' equals the amount of tho paid-up capita

the progress of tho Bank and the success of its management are made evident.

And the judgment of the chairman of

directors of such an institution concerning the commercial situation in"tho Dominion is entitled to the respect of the community. Fortunately, the Government which is now in olfice in the Dominion is not likely to disregard tho need for the exercise of prudence in the management of the finances of Uie country.

WARS AND RUMOURS OF WAR. It must be impossible for any person to read the fragmentary news that comes by cable concerning various aspects of the situation in Europe without being struck by the unrest' that it reflects. Turkey is literally wallowing in trouble. Tho war with Italy is stiil dragging on. and things arc going from bad to worse in the Balkan Peninsula. The position in tho Balkan Stales is 'said indeed to be causing disquietude at Vienna, and it may be supposed that it is exciting concern in other European capitals as well. The Towers will doubtless continue to make representations in the interests of order and peace, but the clamour for war in Bulgaria is loud. Lately elevated to-thc rank of an independent monarchy, confident of her military strength, and influenced by a desire to assist in freeing .Macedonia from-the Turkish yoke. Bulgaria lepresenta at present the outstanding danger spot in the Tliilknus —one which is capable of "encrating a conflict infinitely more serious tban tbc present Montenegrin, frontier troubles and calculated to be far-reaching in its results. Across the Mediterranean the position is not very much belter. The aclivilios of Franco in Morocco have not prevented thai great country from developing' a ferment that may conceivably be productive of incalculable mischief. The rising which is causing Franco to pour troops into the country is clear evi-

<lcnce of the difficulty of the' task thai there lies before licr. Further niield the a"grcssivcness of China, in respect to Tibet lias caused somewhat strained relu-j Uons, which must shortly come to a hcid, between Hie Chinese and British Governments. The position, taken up by Great Uritiin is simply thai she will not consent to the assertion of Chinese sovereignty over a State with which she has an independent treaty, although fully recognising Chinese suzerainty over Hint State and disclaiming any inti'iition of ■ interfering with the integrity or adminis-1, tration of Tibet. Vet all these symptoms ij of international belligerence recorded from \ day to day pale somewhat in significance 1 beside the graver shadow of possible con-! Ilict between Ovcat Itritain and Germany; thai never serins really to lift from Uici European situation. Prominence was, given a few days ago to the utterances j of n member of the Canadian Legislature, I who, having had some opportunity of judging of the feeling that prevails on the Continent and in England, expressed the conviction that Germany and Great Britain were already almost in a state of war, and that His initial blow might bo struck at any time. Individual opinions as to the situation, scarcely any.

two of which closely agree, aro to bo accepted with caution t but, if, as is frequently enough Hlji'god, w»r bo inevitable, doubtless the sooner it comes about this better. 15nt it may not be inevitable, mid it will assuredly be a grave calamity if a conflict between two enlightened nations cannot be averted, as should be possible through a cessation of rivalry <luc to a better mutual understanding. War should not be inevitable if tberc bo a recognition on the one hand of 'the necessity for the maintenance by (treat Britain of her naval supremacy, since the- United Kingdom is dependent on oversea sources for her food supplies and possesses tho greatest carrying trade in the world; and a recognition on the other hand of the legitimacy of Germany's aspirations in the direction of colonial expansion, provided these involve no designs on British territory. Mr Churchill's last word on llw subject, that it is and' will continue'to bo the policy of his country to keep its licet in a state of unassailable superiority and efficiency, has in the meantime its special significance