FINANCIAL STRINGENCY

Otago Witness, Issue 3519, 23 August 1921, Page 24

FINANCIAL STRINGENCY

CONDITIONS IN AMERICA. WELLINGTON, August 16. Mr T. M. Wilford, M.L., interviewed to-day on iiis arrival in Wellington from San Francisco, said that that city, with the rest of America, was feeling tue world condition of financial stringency, and was suffering from the high cost ot production and loss of customers. The Secretary of the Treasury stated that for the year ended June 30 America had lost 3,000,000,(XX) dollars worth of export trade. Tlris Air Hoover ascribed to the bankrupt state ot Europe and the impossibility of trading at the present exchange rate. Air Mellon also stated that out of every dollar of taxation only seven cents was available for administration , purposes, after paying annual liabilities, and warned the people that, unless all the departments decreased expenditure, the taxation would be greater still. Owing to the wage increase the high railway rates had thrown many thousand wagons and passenger cars idle. The citrus industry of California was completely knocked out. Seventy-eight ships in San Francisco Harbour were idle, and 13v0 were lying up in all American ports. Interest rates were away up to 8 per cent, on ordinary city bonds. The Japanese question looms very large in the States today, but at the same time the disarmament conference meets with general favour. Jt is estimated that there are from two to three million unemployed in America. General Booth states that tho outlook for the coming winter is the worst on record. As a result employees in some industries have readily accepted cuts of from 15 to 20 per cent.' Asked for his opinion on tho prohibition question, Mr Wilford said it was too soon to judge whether it had been effective, but from what he had seen he had come to three conclusions. One was that the real effect of prohibition will not be seen until the private stores of liquor are used up; two, that the saloons and spirits were gone for all time; three, that light wines and light beers will eventually fco permitted. One curious effect or prohibition was the number of epurt cases, of which 4000 were awaiting trial in .Fan Francisco alone. These were blocking the judicial business of America, and there were not enough judges to cope with the -work.