Public Opinion

Wanganui Chronicle, Volume 74, Issue 137, 12 June 1931, Page 6

Public Opinion

HARBOUR LOAN Sir, — The Loan Board is not in a hurry to lend the Harbour Board th< £40,000 sanctioned by the ratepayers Like the writer, they have no faitl in the board’s policy or method of con st ruction. After paying the Admiralty account fur the Kaione, etc., there wih be about £20,000 left. From that amount £lO,OOO is required for plant etc., which to my mind is ridiculous The total cost of the plant required t< build the sea wall at Cronulla (New South Wales), which was bui of con crcte reinforced with large stones to stand the full force of the ocean, was £350 —why then is £.10,000 required here for plant, etc., to build a similar wall? The board is not too flush vpitli money, and it is their duty to spend every pound wisely, and make the best use of the money available. To attempt to build on, and try to make the present mules watertight is foolish and too costly. 1 would suggest to the board tu build concrete Avails on th' 1 sea side of the present moles, using the shell rock with the concrete to strengthen and cheapen the cost. The cost of each wall should not exceed £22,000, including plant, etc., ami could be completed within twelve months. To Dr Bradfield, engineer in charge of the underground railway in Sydney it would be like a week-end job. For 50 years we have been spending money foolishly on the harbour. The time has arrived when it should be spent wisely. -Yours, etc., E. N. JAMES The Local Bodies Loans Board only regulates the loan activities of the local bodies of the Dominion; it does not itself provide the funds.—Editor.

MOTOR LICENSES AND LIQUOR Sir, —Over the uom-de-pluine of “Safety First,” a letter appeared in your columns of the 6th inst., bearing upon the above .subject. The writer wants to know why a person applying for a driver’s license is not questioned re taking alcoholic liquor; when several queries arc put regarding rheumatism, dizziness, etc. In my opinion the fault lies with the motoring public, in not instructing their M.l’.’s to agitate in Parliament for such an addition to the regulations. I believe that fifty per cent, of motorists would welcome some drastic rule relating to the imbibing of liquor whilst in charge of a motor vehicle. On the other hand not one per cent, cares a jot whether drivers suffer from rheumatism or house-maid’s knee, for the obvious reason that so far no account has come before the courts, where it was even hinted that neurit!.was the real cause of the mishap. We do know that, according to the report of the Justice Statistics, 1927. there were 5000 summary convictions for negligent or dangerous driving. Also 294 summary convictions for drun kennbss whilst in charge of a motor vehicle. The figures are still rising, and so they will, for the reason that. I have yet to hear of one person who (has given up drinking for fear of a £2O line, or disqualification from driving for 12 months. Some interesting data is contained i" an article by the editor of The Mor.is Owner for September, 1925. There it is clearly shown as the result of experiments, that small amounts of alcohol so retard reflex action of the To*rvous system as to lead to dangerous delay in the formation of a sound Judgment, which is necessary to the proper action needed in meeting the constant-

ly arising emergencies inseparable from driving a car. The London Times, in a leader, sums up the position thus: “As things stand at present there would appear to be no absolute safeguard for the motor driver but total abstinance.” When wo know, sir, that a \ eliicb’ travelling at .10 miles per hour, covers 14.66 feet per second, or doing 45 miles covers 66 feet a second, then we must realise that a fraction of a second's delay usually ends in disaster. As “Safety First” says, the Auto. Asso ciation should take the matter up. Thanking vou, —I am, etc.. MOTORIST. CENTRAL BANKING Sir.—Your interesting article of today's issue entitled “A Central Bank,*’ is not only timely, but shows the absolute necessity of the Niemeyer report being released ns soon as possible for open debate. Your advocacy and throwing open your columns to discussion on the most of all the important economic questions, viz.., banking finance, is worthy of the highest commendation and sup port. Unfortunately, the advocacy fur a Central Bank for New Zealand has been mysteriously and suddenly brought before the public. No helpful sugges Lions whatsoever have been advanced. It has only been advocated by bankers from overseas. How obnoxious and derogatory it must be to the money power on the other side of tlu world for the unique position that the Bank of New Zea laud holds with the Government uf New Zealand, viz., the Government is the largest shareholder, with powers of nominating a majority of the directors to the board, lit other words, it is too convenient a stepping stone Io a Stale Bank. Like the Commonwealth Bank of Australia, certain influences from overseas have taken advantage of the world-wide depression to try and alter these conditions in Australia and New Zealand. Their best method is to have them converted into central banks. In other words, make them the, bankers banks. This will of necessity st reng then the private banking interests at the expense of the Governments and its peoples. From my observations I think New Zealand and Australia are at the crossroads of their financial banking history, and it is most unfortunate that very few business men have the temerity and skill to combat this dangerous octopus that works quietly and in the dark wherever possible to tighten the shackles of finance on governments and peoples in their own interests. Mr Reg McKenna, in his speech to the shareholders of the Midland Bank on the powers of central banks, showed conclusively that all countries with their numerous ventral bank charters, were unable Io prevent the precipitous fall in the price level; further, the gold standard has not been functioning as might have been anticipated. In conclusion. Sir, it seems remark able that the only central bank that seems to be operating successfully in the interests of its people is the Soviet

Central Bank of Russia. For instance, what extraordinary reading in to-day ’s cables of the issue of the Soviet Joan of £168,090,090 for ten years’ duration, half consisting of non-interest bearing inscribed premium bonds, on which regular draws will be made. The remainder consisting ot interest bearing bonds, but no premium. Just fancy, •Sir, any country trying at this juncture to issue a loan under such conditions. As is well known under our system, loans are never paid off, but. how different with the Soviet system. Their Joans arc redeemed at the end of the period, according to their planned economics, with tho profits made from industries for which such loans were issued. 1 am, etc.. “A NTT-CENTRAL.’’ REPUDIATORY POLICIES Sir,— It is remarkable how many ma> ters uf policy which have from time io time been placed before the Govern ments of the English-speaking people, niter their aspect when adopted as s. policy by the Labour Party in Austra- T lia. I refer, of course, to the interpretation placed upon these actions bv the supplier of cable news to New Zealand. Quite recently there has been s»m« atlvvrse comment, regarding the proposal of Mr J. T. Lang. Premier of New South Wales to lew a special penal tax of twenty per cent on the interest received f-oni loans which have nut been converted by the holders. It is interesting io note that, though the reception of this item of news was regarded in New Zealand as “ repudiation” and interference with the •‘sanctity” of contracts no .such interpretation was placed upon an exactly similar proposal advanced in May 1916 by the Rt. H<>n. Reginald McKenna (now chairman of the Midland Bank and in 1916 Chancellor of tho Exchequer). Certain American securities held in England were required by the Government for the purpose of re-sale in America in order to assist tho Exchanges between the two countries. Tho supply of these securities offered to tho Government dwindled very considerx l '- ly ur.! Air AlcKeena proposed a ' tax of 10 per cent, on all securities m this nature which were not offered for sale to the State. When introducing the resolution in the House of Commons in May 1916 Air McKenna stated that, if the additional tax were not sufficient Jv powerful to inffuce the surrender of the requried securities, he would propose the increase in the rate to 25. or, if need be 100 per vent in the £ (See “British Budget” 2nd Series by Sir Bernard Mallet, and c. Oswald George), (Alacinillan). P.LVE PETER.