THE OTAGO DAILY TIMES FRIDAY, DECEMBER 23, 1927. THE REPARATIONS PROBLEM.

Otago Daily Times, Issue 20289, 23 December 1927, Page 8

THE OTAGO DAILY TIMES FRIDAY, DECEMBER 23, 192 7. THE REPARATIONS PROBLEM.

Mr Parker Gilbert, Agent-general for Reparation Payments, expressed the conviction, iu his third annual report on the operation of the Dawes scheme, that tho reparations problem and its dependent questions will not be solved until Germany is assigned a definite task to perform on her own responsibility without foreign supervision. The inference that is to be drawn from this statement is that in present circumstances Germany is less disposed than she should be to exercise for herself the necessary vigilance in maintaining her finance on a sound tooting. Only last month Mr Parker Gilbert addressed to tho Gorman Government a memorandum which constituted a somewhat formidable indictment of its finance. His object in so doing was to call attention, as he explained, to the dangers involved m the present economic situation in Germany. If he did not say in so many words that since 1924, when the Powers provided her with a plan for establishing a sound currency system and a business-like method of discharging her obligations, and furnished also the money with which to put it into operation, Germany has been pursuing a policy of reckless extravagance, theio have not been lacking those who have been quite ready to say it for him. Mr .Parker Gilbert pointed out m Ins memorandum that, the working capital of Germany having been destroyed by the war and by subsequent inflation, a sound and well-ordered sjst-om of

public finance, which will provide a special incentive to economy and saving, is of the utmost importance to her. The purpose of the Dawes plan was to gtve her a basis for such a system, and manifestly it was always a matter of vital importance to her creditors that her Government should manage its affairs in such a way as to enable the plan to have a fair test. But, while Germany had a special incentive for saving and careful spending, the developments in her public finance have not, in Mr Parker Gilbert’s opinion, been in the interests of German economic life or of the execution of the Dawes plan.. As he puts it: “ The German public authorities are developing and executing constantly growing programmes of expenditure and borrowing with but little regard to the financial consequences of their actions. The rising level of public expenditure is already giving an artificial stimulus to economic life. If the present tendencies are allowed to continue unchecked, the consequence is almost certain to be serious economic reaction and depression, and a severe shock to German credit at home and abroad.” , In presenting the draft Budget for 1927-28, the German Finance Minister said: “ Our burdens are so great that we must take advantage of every opportunity of saving.” Referring to reparation payments, he declared that he regarded the future with grave anxiety. Vet the tendency of the Government’s policy has been in the direction of increased expenditure and enlarged commitments, and the authorisations of expenditure carried in the 1927-28 Budget were increased by 600,000,000 reichmarks before its final enactment. Following upon that the Government a moved of increases ranging from 18 to 25 per cent, in official salaries and pensions, concerning which Mr Parker Gilbert says-: “The salary proposals of the Government are noteworthy, not merely because of the large expenditure which they entail, but even more because they have been made on the most sweeping basis and in the way most likely to bring serious consequences for the general economy of the country.” The effect of failure on the part of the Reich to exercise restraint in its expenditure is regarded as endangering the stability of its Budget, tho establishment and maintenance of which constituted the corner-stone of the experts’ plan for tho reconstruction of Germany. With its own expenditure constantly rising, the Reich naturally finds it difficult to induce the States and communes to bring their Budgets into proper order, particularly at a time when the measures which it has itself initiated may add greatly to their expenditure and throw many of their Budgets still further out of balance. Mr Parker Gilbert states broadly what this must lead to: “ The result is a general lack of effective control over public spending and public borrowing. In consequence, unsound public finance is increasingly prevalent in Germany, and the money which is so badly needed for the development of agriculture and industry is being absorbed, through taxes and public loans, in a scale of public expenditure which seems to be incurred without regard for the loss of liquid capital which Germany has suffered and the urgent need of recreating this capital through economy and careful spending.” Increased costs of production, increased prices, and increased cost of living are indications of the effect on the economic life of. Germany of the present tendency towards over-spend-ing and over-borrowing. While that country has made remarkable progress during the last three or four years, it would be deplorable, as Mr Parker Gilbert suggests, if what has been accomplished should now be imperilled by short-sighted and unsound internal policies. “From the standpoint of the experts’ plan,” he says, “it is only natural for the creditors of Germany to feel that reasonable prudence in the management of the public finances is a necessary element of goodwill, and it would not bo surprising if outside observers should draw the conclusion that tho financial policies followed in the past year have not been in the interests of Germany’s reparation obligations under the Dawes plan.”

There will be no publication of the Otago Daily Times on Monday, December 26. The services rendered the Dominion by the Prime Minister (Mr J. G. Coates) were acknowledged by a deputation of Wellington business men and friends, who waited on Mr Coates at Parliament House on Wednesday night to wish him the compliments of the season and ask him to accept a presentation as a token of their regard and esteem. The arduous nature of the recent parliamentary session was stressed by the various speakers, and the earnest efforts of the Prime Minister to do all he could in the interests of the country as a whole were emphasised. “ It is good of you gentlemen to come along to see me in this way,” said Mr Coates in the course ot his reply, “ and I appreciate warmly a*i that you have said and the spirit which prompted you to make mo a presentation. We have had difficult times, there *re difficult times still ahead of us, but 1 know that all arc putting their shoulders to the wheel and New Zealand will, as in the past, win out. It is gratifying to me to receive such testimony as you gentlemen have given. I know you all have the interests of the country at heart and are working together for the good of all. My very best thanks to you.” The usual holiday bustle was very evident on the Dunedin Railway Station yesterday, and the outward and ipward express trains all carried heavy loads. The 8.35 express to Invercargill took 340 passengers, and another 340 loft by the north train live minutes later. The second express for Christchurch was a particularly heavy one, and took away 450 passengers in its 15 cars, and the through train from Christchurch brought 500 passengers for Dunedin. Traffic by the late express was normal. Mr Justice Sim has granted probate in the estates of the under-mentioned persons:—Arthur Hippisley Hoycock, late of Dunedin, accountant (Mr H. L. Cook); George Oliver, late of Oamaru, retired shepherd (Mr W. G. Grave); Cornelius Ahern, late of Dunedin, labourer (Mr J. R. Lemon); and Soren Hansen, late of Hawca Flat, farmer (Mr M. V. Lousier) The late Miss Mary Day, of Dunedin, under her will, bequeathed the sum of £2OO to the St. Vincent dc Paul Orphanage at South Dunedin. At the conclusion of the sitting of the City Magistrate's Court yesterday morning Mr J. R. Bartholomew, S.M., marked the occasion of the last sitting of the court before Christmas by extending to the legal profession, (ho officials of the court, and the pres, the compliment? of the season. In the City Police Court, Mr W L. Moore, on behalf of the Bar, wished Mr H. W. Bundle, S.M., the compliments of t Inseason. Mr Bundle reciprocated, including in his wishes, the Bar, court officials, police, and press.

A Napier Press Association telegram says that a Jersey cow on a farm at Taradale has given birth to triplets—two males and one female—all three being normal calves. Twins are not uncommon amongst cattle, but triplets are very rare; in fact, farmers in these parts are unable to quote another case. There was a rush of expectant buyers when the Christchurch Municipal Marketin Worcester street was opened yesterday morning (says out own correspondent), but much disappointment was expressed when it was found that only two stalls wore occupied for business. Evidently the growers of fruit and vegetables were not ready. It was stated that 14 stalls have already been taken, six of them by growers. The two stalls in operation did a roaring trade, one selling fruit and vegetables and the other dressed poultry. Mr J. G. Ruddenklau, of Glenavy, has just returned from Christchurch, where he he met some of the leading flourmillers to whom he submitted a scheme for the stabilisation of prices of wheat. Mr Ruddenklau (says a Press Association telegr-’m (rom Waimate) is the large-’ single grower of wheat in New Zealand His represen tations always carry weight and millers have promised to go fully into the scheme because it practicable it will have the effect of bringing them and the wheatgrowers together. In an addres b some time ago Mr G. A. Green Dominion secretary and organiser of the New Zealand Association of Nursery men, stated that he had heard that the Forestry Service had burned 6,000,000 trees. This statement was subsequently contradicted by the State Forest Service which stated that there had been no surplus trees in the State nurseries. Mr Green wishes us to say that he accepts the statement as correct and that he regrets having mentioned a statement to the contrary which he had received from an apparently reliable source A very fine carved Maori feather box has beer presented to the Museum by Mr W. Fels. The box was bought in London and is easily the gem of the collection of feather boxes now being displayed. The foreswore road between Port Chalmers and C ;/ Bay is closed to traffic while the road is being widened. The work is being carried out by unemployed under the direction of the Public Works Department. The road, however, will be cleared and temporarily opened to traffic for the week-end holidays. Residents of Dunedin tnay therefore drive as usual to week-end residences at the North Spit. It hSk been suggested that the authorities in London make conditions difficult for seafaring New Zealanders wishing to obtain certificates of proficiency in the Empire City. A Daly Times reporter put the case to a young New Zealander who recently qualified in London. He replied that his experience did not bear that out. It was true that the vocal portion of the examination was very searching, but he understood that was in order to ascertain whether the candidate’s experience had been obtained on the approved lines. Otherwise th candidate’s ability to qualify was in nowise hampered by the examiners. He found them very reasonable. His examination was in marine engineering and there was no doubt that the examination tests were of a drastic nature. Nevertheless New Zealanders had little to complain of for they were obtaining creditable places in the percentage of passes. Such examinations were nowadays of a highly technical nature, and internal combustion machinery was, adding to the intricacies of it, but it was also openjpg increased opportunity for those desirous of acquiring all-round proficency in marine engineering. Settlers in the Lower Harbour district are disappointed that the unemployed at present widening their road are not likely to be there for longer than six weeks. Valuable work will be done in that period in widening the road at some of the sharp points, but it will be practically only a start Grassy Point and Pulling Point, where the road is narrow and distinctly risky for traffic, will not be reached unless the unemployed are kept on for a longer period. The setters are proposing to appeal to Mr J. M. Dickson, M.P., to place the position before the Minister with a view to getting the time at present allotted to the improving of the road extended. Such improvement is very much needed. A Press Association telegram from Wellington states that the broad effects of the more important of the decisions arived at by the International Radio Conference held at Washington recently are outlined in an interim report submitted to the Post-master-general by Mr A. Gibbs (chief telegraph engineer), who represented New Zealand at the convention. An important suggestion for an extension of the New Zealand Government’s activities in the field of radio signalling, including the creation of a specially-equipped service, is also *ncorporated, and it is hoped that the Scientific and Industrial Research Department will be able to devote some time to the unsolved scientific problems of radio transmission calling for treatment in Ihe Southern Hemisphere. The convention also agreed to a special provision under which the deck officers on the smaller vessels trading on the New Zealand coast will be permitted to act as wireless operators. A fuller report will be prepared later by Mr Gibbs for submission to Parliament. The most difficult part of a land agent’s business, according to Rotarian H. J. Duigan, of Wanganui, is the effecting ot exchanges. He told the members of the Rotary Club that land agents displayed human frailties just like members of other professions. What the had to guard'ngainst was misrepresentation—no matter how innocent —concerning the extent and features of properties under offer of exchange. “It a snake is being exchanged for an elephant,” he added, “ it never does to add a few feet to the length of the snake nor add a few hundredweight to the weight of the elephant.” A story of one of the mothers of the early days was related by an old settler who attended the recent celebration of the jubilee of the Ashburton County. Near the site of the function there stood in the very early days a store conducted by Mr Donald Williamson, the first storekeeper in Ashburton, and nearby were the stock yards. During the great flood of 1868. the water swept over the flat country beside the bridge and the store was inundated, threatening death to the inmates. Mrs Williamson tied her children to the stockyards at the height of the flood to prevent their being swept away, while she attended to other duties. There they remained till they were rescued by a Mr Robert Miller, who was mounted on a horse. A chance remark by th e welcoming speaker and the inclemency of the weather made an opportunity for Mr L. S. Amery, Secretary of State foi f Dominions, to indulge in a dttle humour when addressing the citizens of Napier on Saturday night (says the Daily Telegraph). The Mayor (Mr J, Vigor Brown), in welcoming Mr Amery, had said that Napier was the most easterly town in the world, and Mr Amery. in replying, said that it was written that the wise men came from the east. —(Laughter and applause.) “It is not, so far as I remember, specifically indicated what part of the east they came from,” h e said, “so wo will presume that it was [rom Hawke’s Bay that they set out on their long pilgrimage to gain knowledge(Laughter.) Like them, shall I say, I have come to gain knowledge from the wise men, of Hawke’s Bay.—(Applause.) Now, ladies and gentlemen, I fled from England some months ago to escape from the inclemencies of the weather that made summer there like winter. I thought that in the antipodes at least I should secure some relief from the rain that wet one to the skin and the cold that chilled onF to the bone. But when I landed in Auckland it rained. When I was in Taranaki it rained. When I was in Wellington it rained, and it blew, and it froze.— (Laughter.) When I was in Christchurch it rained, and when I was in Dunedin rained a little there, too. I think an., then on the West Coast it rained slightly, as it docs there sometimes.—(Laughter.) And as I went on my way, everywhere 1 was they told me, ‘ Wait till you cot to Hawke’s Bay, it never rains there, the sun continually shines and they arc always complaining of A■■ heat and the drought.’—(Laughter.' Well, here I am, ladies and gentlemen, and 1 wish to sincerely thank all of you who have braveu the heat and the drought to come out ana welcome rno to-night.'' As rain pelted down outside and a cold wind swept the town the audience rocked with laughter.

A big Native gathering will be held at Motuiti Pa during Christmas (says a, Press Association telegram from Wellington), when a memorial to the late Rev. T. Paerata will be unveiled by Sir Maui Pomare and Sir Apirana Ngata, and a confirmation service will be held by Bishop Sprott. Matters concerning the welfare ot the Native race will be discussed. Representatives of the Natives from all parts c£ the North Island are already assembling. An important step forward in the movement to establish a cereal laboratory ia Canterbury was made at a |neeting over which Dr F. W, Hilgendorf presided on Wednesday, and as a result of which preliminary work will be put in hand at once. The proposed regulations which have been drawn up under the amended legislation of last session for the purpose ot submission to his Excellency the GovernoaGeneral were considered and unanimous-, approved, with minor alterations The regulations cover the committees, levies, and general administration. It was decided that work should be begun forthwith wirn crop certification under Dr Hilgendorf and Mr Hadfield. Dr Hilgendorf, Professor H. Denham, and Messrs Hadfield, Hawker and Lyons were appointed an executive Jo deal with arrangements for accommodation for a laboratory, its equipment, and preliminary staffing. It is some time since anything has been heard of the proposal to erect a museum and art gallery for Wellington (says the livening Post). Vlt will be recollected thas the stage reached a few months ago was that the Government had promised to make a definite statement with regard to the proposals early in the New Year. The position is that a request has been made by the Citizen’s Coipmittee for the allotment of Mount Cook as a site for the museum, art gallery, and war memorial carillon and it is the -Government’s reply to thia that is now holding up the negotiations. Asked if there was anything fresh to report on the matter, Mr H. D. Bennett, who was asking as secretary to the Citizen’s Committee, said the position was as stated above. The Government, he said, had promised definitely a sum of £IOO,OOO towards the project, provided the citizens would first raise a similar sum. The committea did not anticipate much difficulty in raising the necessary funds, but could not approach the public until it’ was known where the buildings were to be erected. Both the question of site and that of the Board of Control were expected to be definitely fixed when the Prime Minister made his announcement. The citizens would then, he said, go right ahead. During the past months sketch plans had been prepared showing the position of the buildings iu relation to the site. Several Melbourne passengers on board the Aorangi, which arrived at Auckland on Monday from Sydney, are not likely to forget the trip. While being sent from Melbourne to Sydney, most of their luggage was misplaced, and on arrival at the whart at Sydney the travellers were greeted with the news that they would either have to sail without their luggage c, remain behind. All of them decided that lest luggage would not deter them from making the trip, hoping that it would be found and shipped to Auckland by the next boat. However, frequent wireless communications during the trip disclosed that the luggage has not yet been found. The travellers had to spend four days on the Aorangi without change of clothes, but* they accepted the position with good grace. The ceremony of rededicating the Selwyn chapel, on the point above Judge’s Bay, Auckland, will be conducted by Archbishop Averill on Boxing Day, which is also St. Stephen's Day. This historic building was erected as far back at 1848 by Bishop Selwyn, and it was there that in 1857 the constitution of the Churoh of England in New Zealand was signed. It seems singular that a building with such historic association has for many years not been used for the purpose of worship, with the result that it has been allowed to fall into Ja state of disrepair. The matter was discussed at the last sitting of the Synod ot the Auckland Diocese, when it was decided' that the chapel of St. Stephen should b« recommissioned. The building has been repaired, and the Auckland City Council has agreed to keep the grounds, including the cemetery, in order. Many of the founders of Auckland were laid to rest .n the old cemetery at St. Stephen’s, and it is but fitting that the building should be once more used for the purpose (or which it was erected by the first Bishop of New Zealand, Dr G. A. Selwyn. Considerable excitement was caused at Lyttelton on Wednesday evening as the ferry steamer Maori was steaming out from the wharf to the moles, when a m-- was seen to jump overboard. The ship’- telegraph clanged and the vessel was put n'teru The man, however, was seen to be swimming strongly for the shore, and the ferry then proceeded on her way. As he neared the ferry wharf the swimmei* found that he had left his hat floating at the spoil where he entered the water. Nothing daunted he turned back and recovered his hat before swimming to the wharf, where he landed none the worse for his immersion. To the bystanders he explained that he was a seafaring man. and went on board the Maori to have an argument with a member of the crew. When he found ho was being carried away in the ship he jumped overboard and took the shortest way back. Christmas greetings from Mr 0. J. Hawken (Minister of Agriculture). Mr J. A. Young (Minister of Health), Mr J. Wallace (chairman ot ths Otago Education Board), the Mayor (Mr J. P. Walls and councillors ot the borough of Mosgiel, thte officers of the Forest Service, the Railway Board, General Motors of New Zealand. Ltd.,- and the Wembley Club are reciprocated. In the special classes at the Horticultural Society’s summer show, Mr J. Stenhouse was reported as being the winner ot the class for the three varieties of roses, with Mr J. A. Brown second. The order should have been reversed, Mr Brown having been the winner of this section. Rheumatics, Neuritis. —Arthur Malcolm, the rheumatic expert (for over 38 years), now consulting daily at 377 Leith street. See advt. on another page.—Advt. Many years' experience, plus the most up-to-date equipment scientific optometry ca. suggest, entitles W. V. Sturmer, G.A.0.C., D. 5.0.1., Octagon, Dunedin, to guarantee complete satisfaction in all eye troubles. Advt. A. E. J. Blakeley and \V. E. Bagley, dentists, 8.. k of Australasia, corner of Bond and Rattray streets (next Telegraph Office) Telephone 12-359.—Advt, Xmas Jewellery.—Compare our values. Just landed, large selection Diamond Rings, Reliable Watches, Jewellery, and Silverware. —Peter Dick, the most reliable jewellers, watchmakers, and opticians, 490 Moray place. Dunedin. —Advt.