The Waipukurau Press. Published: MONDAYS, WEDNESDAYS, AND FRIDAYS. WEDNESDAY, OCTOBER 29, 1930. INVESTMENTS.

Waipukurau Press, Volume XXIV, Issue 126, 29 October 1930, Page 4

The Waipukurau Press. Published: MONDAYS, WEDNESDAYS, AND FRIDAYS. WEDNESDAY, OCTOBER 29, 1930. INVESTMENTS.

In a rather arresting manner, Mr W. A. Appleton, the Secretary of the General Federation of Trade Unions in England, points out that the smaller investors in the Homeland, are putting their money into national and municipal investments rather than industry on a plea of “safety first.’’ He also says that the English as a business nation treat overseas creditors better than those at home. Elucidating this he points out that there are not wanting signs that the continuance of high rates of unemployment is assisted by the lack of power and enterprise in the provision and investment of productive, as against interest-bearing capital. The will to save is not yet destroyed, but many thousands, . particularly amongst those whose savings are small, save not for the purpose of furthering trade, but as a provision

against sickness, or old age, or because they desire even in a small way to safeguard the future of some regarded ones (surely quite a laudable object). All, or nearly all of these, seek what are known as giltedged securities. With them, and quite naturally it is safety first. Governments and municipalities offer a rate of interest higher than the average obtained by industrial undertakings, and assured by exactions from taxes rather than earned by effort, it must be expected that they will put their money in municipal stocks, in war loan, or in savings certificates, rather than in speculative trading. Foreign capital there has been in abundance. The financial cataclysms of last autumn sent many millions of American money in search of safe and ’profitable investment. Some of this found employment in Great Britain, but more ■went to Continental countries, where the rates of interest are higher and the burdens of taxation lighter. The need for attracting capital, to industrial undertakings, and for enterprise in speculative trading is painfully apparent, but the problem is not easy, nor does it seem likely of solution while governments and municipalities offer, at least for the time being, better and safer terms than industry and commerce are likely to provide. There is, in spite of Asiatic and Continental opinion to the contrary, a definite tendency on the part of the Britisher to regard himself as his overseas brothers’ keeper. This tendency leads him to make efforts and to expect results which in a more extended and less emotional study of human nature and world affairs would show that neither were appreciated nor likely to produce the results anticipated. He is moreover peculiarly sensitive to any criticism of his good intentions, and not infrequently jeopardises his commercial and political interests by endeavouring to prove- that the world’s doubts of his bona tides are unjustifiable. He will put hundreds of mil-

lions of hard-earned capital and sacrifice many lives in efforts to develop the material and moral resources of other countries, and when the developments have reached a paying point will forego just dues and sacrifice great opportunities if some of his competitors suggest selfishness or accuse him of exactions. The history of the Britisher is indeed one of efforts made and exactions foregone. He develops countries, builds up societies, makes prosperity possible and then permits himself to be bluffed out. And even when he has done all these things he usually fails to secure that approbation which his soul longs for. Economically he is today reaching that point when he will be compelled t® realise that even if it does not end there, charity should begin at home. When credits are asked for and debts are to be paid, he will have to insist that the credits '? ill be safeguarded and the returns made sure. If the history or the practice of any country is unsatisfactory, his credits had better be withheld, or it would be wiser to spend the money upon the poor of his own country than to risk it with defaulters in other countries. In the future, at least until many existing liabilities have been liquidated it will be necessary to think of national affairs and international relationships as the shrewdly-minded think of business. Expenditure and activities whether commercial or political should be arranged with due regard to returns in the shape of interest or employment. Remembering that weakness whether in individuals or industries, or politics, wins neither respect nor profit, we should endeavour to make ourselves, our business and our country as strong as possible. Doing this and carefully differentiating between patriotism and chauvinism, we may come through the present crisis with credit and not too much additional suffering.