CURRENT TOPICS

Southland Times, Issue 17306, 31 March 1913, Page 4

CURRENT TOPICS

PROHIBITION AND PUBLIC FINANCE. When casting about for the influences that affect our credit iB London commentators sometimes show no small ingenuity and resource la offering unexpected explanation*, of a rise or fall in our stocks, but th* London Financial News opened new ground a few weeks ago when it suggested that investors might want to know how the Government proposed to keep ttp the public revenue in the event of National Prohibition being carried. This is what the Financial News said;— As very little ha* bee* heard lately of the Prohibition campaign in New Zealand, perhaps it may toe taken for granted that this attempt to reduce the revenue of the Dominion by about £2,000,000 a year has been abandoned. It may, however, bo worth the while of the New Zealand Government to make some definite statement an the subject during the currency of the loan negotiations. When w* previously referred to the matter it wa* suggested, by certain frantic Prohibition!*! agitators in New Zealand, that the financial New’* was controlled by brewers, and that its attitude in the matter Of Prohibition was dictated by the*e g«Btlcmen. Perhaps it Is superfluous* for ns to say that The Financial New* is mot, and never has been, owned, controlled, or influenced in the slightest degree by any

fertnrer. Nor' have we the most remot concern with the respective merits o Prohibition and the converse policy Our point is simply :is that where a Brl tlsh colony is borrowing largely in thl market the public has the right to kno\ Whether it proposes to penalise a larg existing Industry anti to destroy’ a sourc of considerable revenue, and, if so, li what manner the abandoned income 1 to bo replaced. If New Zealand —on Of the pluckiest and most deserving o •11 the overseas dominions —can mak this matter clear; the British Investo ■will seek no further concern with he Internal policy’. Having regard to th frankness with which New Zealand ha always treated the investing public, 1 Hems fairly safe to assume that som Statement will be made. AUSTRALIAN SHIPPING. The Financial Times of January 2otl , baa the following:— “F6r some years past the Australia; trade has given better results to ship owners than has been achieved on al moat any other route, and this notwlth standing that the excellent freights ob tulned to and from the Antipodes hayattracted an ever-increasing amount o tonnage. Remunerative employmen can still be provided, however, for fa more vessels than are at present avail able, in view of the rapid growth o cargo business, and, to some extent, o passenger business also, between th' Commonwealth and the rest of tin World. There is reason to believe, how over, that In the very near future ai Important addition will be made to tin ‘ number of vessels visiting Australiai porta. The rumours which have recent ly been current In this connection have taken definite form In, ‘Fnlrplay.’ « paper which Is alwa'ys well Informed oi ■hipping matters, and in the curren number of that journal It is stated thn the Brocklebank. Anchor, and Cunart Lines will. In all probability, before lonj Institute a new service to the Antipodes nnder one management. This suggestloi wo believe to be correct, and as It fol lows close upon the announcement pub Ushed a short time ago that the Britlsl India Company is also adopting ar active policy in regard to Australiai trade, It is evident that some of th( principal shipping companies in the world are about to make a. bid for ar Important share of the ocean transport business of the Southern Continent Such a development will exercise a farreaching Influence upon the trade of thai country, and will afford a stimulus which will not only add to the prosperity of Australia, but will also have a good effect upon the amount of colonial business done In London. The point to be emphasised, however. Is that the scheme referred to above for a Jolht management of a new service by three prominent lines by no means exhausts tha possibilities of the situation. There can bo no doubt that other important ■hipping companies are discussing a similar policy, and it is highly probable that an understanding will be arrived •t In the near future. In this event it Will presumably be necessary to raise a certain amount of capital for the replacement of tonnage which is to be taken off other routes for the purpose of trading to the Commonwealth, and so. far as one can see we are on the eve of Important developments in connection With this matter.”