The Timaru Herald WEDNESDAY, OCTOBER 21, 1908. THE WIZARD OF FINANCE.

Timaru Herald, Volume XIIIC, Issue 13730, 21 October 1908, Page 4

The Timaru Herald WEDNESDAY, OCTOBER 21, 1908. THE WIZARD OF FINANCE.

We notice that in ins speech ut Feilding last ni'uht the I'Kini.r made another attempt to saddle the bunks with the odium, for the present restricted c(>ini t itin of the money .market. " The monetary insiitutions throughout, tlic colony,' he said. " had been taking advantage of the stringency of the money market to squeezr high rat«,i of interest otic of necessitous nettlers." It is one of the cheap iricks of the demagogue to excite popular indignation against these _ inst : tutions. but it is .surprising thai a politician who has so inunv bttsiiv.ijs interests of his iwn a**' Sir .Joseph NYard has. ishould descend to tlie miserable tacties which do such dis--credit t» Ills commercial acumen. Nobody knows better than the right honourable gentleman himself mat so far front tiving to squeeze high rate,} of inteiesi out of the public, the banks have exerted all their efforts, •veu to the point of apparent r;.r>htie-s, in order to hold up ;he business of the country and tide tlicit clients over a piriod of strain which everybody, no maner what his pol'tical views way be. hopes to see elided at the verv earliest possible date. Politic,; take a vt-iv secondary place t.» the prosperity of the community : the average elector would far sooner feel that the country was in tlie enjoviiK-.-■ of sound progm-s I ban bother his lead what Covernmeni »as in oftiee, and we know thai the mem In rs of the Opposition are far ton patriotie to .seek the embarrassment of th(ioveiiiinerit bv any nivalis which involve ilie embarrausm-iii of , ,i<- iudu*trifs ol New Zealand. l.ea.st of all s ii to be imagined that banket* are going '■» in juie their own bt!Miui>s fur the ~ake ol "ratifviiiii any political opinions that the* may happen to .inritaiii. -lie piigsperitx of their clients means their piosp.tity. and since the d.-ptvss on in :hr money market has sei ill, I hey hav< shown ev>.r\ anxi"tv to i.uppoil th.-ir < listom-is to tilutniosi of their pow ei. Ibe itiutalioi, of .lie charge made bv the Premier last night js wi it ten ili,- banking i\tui!,i whii h we published on Saturday. am which showed ihat during the v.-ai .-mled mi September ciOih hint, '-he banks ban advanced to the public « -tih-!aii; j,d stun .A.i" what rhey had ircrivd a,s i'h|mis!s. Sir .Joseph VVaid cannot l« ignorant ol tile ligun-s. bttt repeal thrill here ioi the H nc'it of any leaii- r who may I) disposed 'o jc.-.pt iiic J'l. luier'.. >lnp.i« sioir-d oiltbuie! .is go'j.il : -

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vear, have extended their advances by nearly three millions. What justification is there here for the charge thai the banks are not doing their duty to the public? 11 is admitted ili.it 'the rale of interest has gone up. bin ai> Mr Costello explained in our columns on Monday, the increase is due to the desire of the banks, not to "squeeze necessitous settlers." but -to check applications for loans when they have no money to lend, just as the Bank of England pushed up its rate to 7 per cent, last year in order to prevent America, at ihe height of its 'financial panic, from making exorbitant demands upon itfor gold. "If the banks chose to take advantage of the present posii'on," Mr Gcsiello said. ihev could «ef much higher rates of interest than they are charging, but uiev do nor want io do this. They are refusing new business, no matter how tempting the rare of interest offered, in order tliar th c y will have sufficient- money to keep iheir regular customers going." Of course the Premier knows this, but- he wants to make political cap'tal out of whatever comes to hand, and he hopes an attack on the banks will be popular, especially if ho contrasts their actiou with the stationary rate charged' by the Advances to Settlers and ' the Advances to Workers Departments. But what does it matter if the rate charged by" these departments is stationary, or even if it is zero, when they- are cleaned out and cannot provide advances? They are simply a delusion, and as happened in South Canterbury, •hey '.have- misled people : mo waiting for advances when they could have arranged private loans at a lower rate than now prevails. And yet. only two months ago. the Premier declared in his Financial Statement that, the repayments .to the Advancei? to Settlers Department were almost enough to meet, current demands. Where was the. foresight of the wizard of finance who made that- statement? It was on a par with his -famous declaration that ilie crisis in America would not affect Xew "Zealand. • and the way in which h:s prophecies have heon belied robs the further prophecy lie made last night of any r;al value.

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