THE FINANCAIL STRINGENCY.

Wairarapa Daily Times, Volume LX, Issue 9345, 16 April 1909, Page 7

THE FINANCAIL STRINGENCY.

ATTRIBUTE.) UO OVER SPECU-

LATION

POLICY T.IB BANKS VINDIOATBD. (Ih/ frMj'-uft -I J rats Asti'iiu'iuon.i AUCKLAND, Wednesday. Soui') iuru-sHt.inj views were expressed by Mr Harold Brimihamp, chiurlmm of director-; of the Bauk of New Zealand, to-day concerning striugeuoy in tin* m;)u'jy market. The interview svas the outcome of published reporrs of the discussion iv Wellington ou the qu by the Now Znalaud OhambiM-s of Uommerco conference aud tint Prinn Minister's statements iv reply. Mi- said he did not believe the'-e would be auy real relief until there was a marked improvement to be observed in tlio trade of the Uuited King lorn, which, after all, was the principal market for thcunajor portion of our products. "True," said Mr Beau -hatup, "there has been au appreciable advance in wool, but there are several other products, such us hemp, gum. aud frozen inuttou, which are exceedingly low. At the same time there is oue satisfactory and that is tho slight decline has occurred iv the values of stocks in public companies iv this country. If you refer to the, quotations issued by'the Stork Exchanges of the Domiuiou from day to day yon will fiud that there are scarcely any stocks that, will yield au mve-tor anythiug beyond o per ceut. This shows there must- be a large uutuber of people who are not iv ssveie. financial straits. ' I tun of opinion that the class

from the money stringency comprises who have indulled iv over speculation in haul, and who an> iv.nv experiencing a dilliculfcy iv raising the niouoy to meet insralmouls as they fall due. Too uiiicti laud—especially country laud—was bouu'ht at bourn prices, ou tlie assumption that the produce of Xew Zealand was k ,mh-,' to commaud extreme races iudefiiurely. Iv other words no room was left for the drop experienced in tlio last year or two. Personally, I am Impefnl that the j financial eiiailibrium will bo restored by reducing imports, and by the practice of economy iv public and in private expend it live. This is uudoubtodlv already taking place, aud the beueJte ought'to be felt in the uext t-welve l,iv Bvaiu-liamp stated,-in reply to a question, tlnit he did not think there •was much cliauce of the bank rates being raised iv the near future. He thought it would be admitted that the bunks hail done more than their duty to the public during the past twelve muurlis by so substantially increasing overdraft? aud discounts. He had seen exception taken to the Dolicy of the b.iuks in keeping large funds in London. Iv that connection, however, he would point out that the banks would not have been in a position to assist their clients as they iiad done if these funds in London had not been readily available for transfer to the Dominion. Iv reply to another question, Mr Beanchamp stare:! that he favoured the borrowing of money by the Government, as far as possible, outside the Dominion, recognising the fact that this couutry was too young to carry out the so-called self-reliaut policy. Referring to the discussion at the conference ou the subject of the mortgage tax, Mr Beauchamp said he was very much iv accord with some of the Tiews expressed, chiefly with those #Mr Kettle, Napier, to the effect it if the tax ou mortgages aud deoeutures was repealed it would be tollowed by a considerable influx of capital to ttie Dominiou for investment. "It will be remembered," said Mr Beauchamp, ''that prior to the imposition of that tax there were large mortgage and investment compauies transacting business in New Zealand. They were of considerable benefit to inhabitants of this country. However, after the passing of the Act those compauies gradually withdrew, with the result that die community is now cliiefly dependent upon the bauk? for its fiuaucial requirements. It is the principle of double taxation that is so strougly objected to by people outside the Domiuiou, notably in the United Kingdom As is well known these people have to pay the tax on all mouev lent by them in the Domiuiou, as well as income tax ou the profits derived from their oversea investmeuts. Representations have been made from time to time to the imperial Goverumeut to get these investments excluded from taxation, but so far without avail. It is for the reasous 1 have stated that I thiuk it most desirable for the New ZeaAJnnfl Parliament to take into couthe representations now being made as to the desirableness of repealing the tax on mortgages and debentures "

The oldest lifeboat in the world is at Redcar. She was one of the first built by Greathead, and in her active •service'of sixty-four years was used to save five hundred lives.

Saturday is the busy day of the London firemen. In ten years London had 3393 Saturday fires, against 3002 on Monday, the day on which they were least frpquent. Amoug birds the swan lives to be the oldest, in extreme cases reaching three hundred years.