A TRAVELLER’S IMPRESSIONS.

Otago Witness, Issue 3016, 3 January 1912, Page 5

A TRAVELLER’S IMPRESSIONS.

(Thom Oub Owh Coebispondkht.) WELLINGTON, December 27. Mr William Watson, a director of the Bank of New Zealand, who has been touring the United Kingdom and the Continent, returned to Wellington to-day. In the course of an interview with a Post reporter, Mr Watson had some interesting things to say about British capital and its movement. He spent much time in the city, and there met men from or representing all parts of the world whither British money flows and whence it returns. “ New Zealand and Australia,” said Mr Watson, “ are not at present very attractive to the British investor. There might be some money found for oil and things of that sort; but the investor finds a more profitable outlet in the United States, Canada, and, above all, in the Argentine. In the River Plate country the rates are 7 per cent, to 8 per cent., and there is not the slightest fear on the part of investors as to the stability of the Government or as to the safety of their security. There is an enormous outflow of British capital into the Argentine, and that country ij making phenomenal progress. You have your own New Zealand and River Plate Company, which has practically all its interests in the Argentine, whose £1 shares are now quoted at £2, and which pays its 9 per cent. I do not think there is any use for New Zealand to go to London for money at present. 'Phis country and Australia are not considered to be suitable fields for the investment of English capital. It may be that other outlets for capital are more attractive or it may be that, there being sufficient money in this country for its present needs, this fields is not sufficiently profitable. To the Government belongs the credit of financially helping the farmer, and so there is plenty of money in the country. With regarl to the capital required for any new enterprises here or the extension of those already established (as also in Australia), such as, say, coal or timber, I do think that the labour difficulties experienced or likely to be experienced make it difficult for capital to come here for,, investment in such undertakings. In the Argentine labour iS cheaper and more abundant, and the Government encourages the investors by giving assistance in developing tho country. Land is much cheaper m tho Argentine than in New Zealand/’ Mr Watson added that land that would carry, a fat cattle beast to the acre was though! dear at £8 to £lO an acre, while land ol similar quality in New Zealand would cos! from £35 to £SO an acre. Considering what they paid for land and labour, tM Argentine dairy farmers werq doing better than New Zealanders yrith their butter in London at 124 s per cwt tp against ours at 129 s j>er cwt. investments in the United States we»s taking tho form of the purchase of eaofry moos estates by the English nobility a&g gentry, who regard the States as a place for capital investment than 'Eng, land. Canada attracted British investors in industrial as well as municipal ana Government propositions.