FINANCIAL OUTLOOK.

Waikato Times, Volume 94, Issue 14586, 8 February 1921, Page 6

FINANCIAL OUTLOOK.

To the Editor.) Sir,—Do you lliink it is vnin.- [o be as bad as predicted? I think nol. Doubtless you remember, aboul 33 to 3o years ago, we had a severe crisis, due to a succession of sick years, and probably to lack of steam communication with the world's markets, augmented by an Australian drought, which reflected on our financial concerns. Even then, with a heavy handicap, we were not long in getting over the stile. 'I he much-talkcd-about prospective crisis has been preceded by live or six years of phenomenal success in nearlv every line of business, which strengthens, all classes for the "pinch." i.e., gelting back to pre-war conditions, which were not disastrous at the time. The only ones likely to feel the "pinch" are the land speculators, who, in their eagerness to gel on the land wheu big prices were ruling for products, bought farms at fictitious rales, without any knowledge of the business, and in manv instances only paying down paltry de--1 ■•sits. They have had their share of i.'gh prices, which w;is u good return at time of investment, hut if they rail '.i keep up their interest payments th-J farms revert to their original owners, necessitating their keeping up production with renewed vigour. It is obvious the soldier farmers will require nursing by the Government, and they rightly deserve it for responding to the Emlire's call. This we appear to ovctnk. If our coalminers and owners would only work amicably the coal production would he a big assistance Lo the lominion. We read aboul coal brought from Wales which is worth Elo per ton against the Dominion's ton. This is siniplj piffle when we remember how the Calliope was the only vessel s-aved by using Weslporl coal during a hurricane at Samoa. The Admiralty (■■■raided it throughout the world is "liie best coal ever used," and I assumo it had also used large quantities ie Welsh coal, and it is still anxious to g.'l Westport. Large quantities of Australian, Japanese, and American coal have been imported at high prices, and l;i several instances with poor results, causing largo sums of money to be sen!, oil', of the Dominion, lb us giving work to outsiders and crippling our own industries. This obviously must tend to keep up the cost of l-ving, and retard progress. Is it not about time coalnnners and owners had a "hcart-to-imart" talk, and considered tins, instead of fighting "shadows" to their individual I es, as it cannot go on in perpetuity? But it is evident the warlike spirit has not quite left us, and will not until wget the "pinch." 1 think it is a serious mistake for locai bodies lo stop neeess.iiy reproductive works devoid of extiavagar.ee). as il will hit the workers, and why should nol the same assistance be meted out lo local bodies as was g'.v'cn to woolgrowers lo tide over any temporary lightness of the money markets'? Australia has had ,i drought nearly every seven years since lis discovery, which has kepi its land values much lower than the Dominion's. Yet It, is apparent she lakes the hurdles with more buoyancy than we do, although curs are infinitesimal in comparison to Australia's. I think wc are too much inclined to "slop the plough to kill a mouse."—l am, etc., P. VIRTUE