The Week in Review.

New Zealand Graphic, Volume XLVIII, Issue 24, 11 December 1912, Page 1

The Week in Review.

Tke Balkan War. THE Peace Conference is to be opened in London on Friday next. In Constantinople the conference is viewed with some misgiving. The Turks are speculating on the effect of possible disagreement amongst the Powers and the sudden disruption of the Balkan League. In this connection it is interesting to note that opposition to a, common foe united the various Balkan States. As long as Turkey was a power to be feared, the Greek and Bulgarian, the Servian and the Afohtenegrin, joined forces for a common plan of campaign; but now Turkey's power is gone, and the jealousies that nave always existed amongst the Balkan States seem likely to reassert themselves. Greece states that her refusal to sign the armistice was not taken for any selfish ends, but for the benefit of the Allies, since she feared that if the blockade was raised. Turkey would be able to secure supplies. It is expected, however, that Greece will eventually agree to the armistice, and at any rate, she will participate in the Peace Conference to be held in London. It is not at present quite clear why Servia and Bulgaria should have signed the armistice against the wishes of Greece. It seems highly probable that these two countries were influenced by a fear of Roumanian intervention and a grave dispute with Austria. As regards the jealousies existing amongst the Balkan States, we mar note that Montenegro has no great ambition, and is not desirous of extending her boundaries. Servia, however, is in a different position. Anything that might help to damage the Austrian Empire would help Servia enormously, and she might secure the leadership of the Balkan federation and become the dominant Power on the Peninsula. Bulgaria and Greece are also bidding for {he leadership of the Balkans. King Ferdinand hopestorestore the ancient dignity of his Empire, and the Greeks are firmly convinced that they are the natural heirs of Byzantium. The ill-feeling that exists between Greece and Bulgaria is fomented by the policy of both Austria and Russia, and the jealousy between these States is largely caused by the fact that thev each have ambitions which cannot be reconciled. Jt Jt Lord Roberts and the Army. Considering that Lord Roberts is admittedly the greatest soldier of modern times, it is strange that his repeated warnings of the unpreparedness of the Britisii army should be so grossly neglected or even opposed. Some critics have gone so far as to state that he is not our greatest strategist, and to cast doubts upon his statement that a mobile land force is essential to support, the fleet in time of 'langer. In a letter to the “Tinies,” Lord Roberts says that Lord Haldane talks loosely of our command of the sea as a profound strategical principle. The National Service League, lie contends, has never denied the necessity for a supreme navy; but it is convinced that an efficient army for Home defence is indispensable to give the navy mobility. He points out that as regards expense, it would need only an additional four millions to provide an adequate Home army and give freedom of action for the navy and overseas expeditionary forces. The Marquis of Lansdowne, who was Secretary of State for War from 1805 to 1900 under the Conservative Administration, said, In speaking at the Alexandra Palace, that a conspicuous feature of the Balkan struggle was the terrible character of the penalty which followed inefficiency and unpreparedness for war. He pointed out that the old two-Power naval standard 1

had disappeared, and we were also unprepared on land. The territorials were 50,000 short of their full establishment, and no one could say that under present conditions they were really efficient. He dwelt on the suddenness of the outbreak in the Balkans, and said that it should give Britain food for thought. Many members of the National Service League contend that the best service the Territorials could do for the country would be to disband altogether. Compulsory service, they say, would in that case be forced upon the nation. J* J* A Mystery of the Post Office. A curious fact has recently come to light in connection -with the correspondence of the Navy League. For months past the secretaries of the various branches of the Navy League in the British Dominion have suffered considerable annoyance and inconvenience owing to the fact- that correspondence addressed to the office at Headquarters has either been ignored or remained unanswered. Every means of securing safety of letters and messages were tried. Registered letters were sent, cablegrams were sent, letters - of protest and letters of appeal; but it was all in vain. Now and then a formal circular would reach its destination, and thenceforward there was nothing. Orders were neither acknowledged nor sent; drafts on banking houses went astray, and every means were resorted to by the secretaries in the endeavour to get messages to headquarters. The mystery has now been partly explained. The following communication has been received by the local secretary: “You will see by the accompanying circular letter we have found out that ilie whole of our oversea correspondence has been going wrong for about a year. We can only conclude that it is either on account of some deep plot to injure the communication of the Navy League with its New Zealand branches, or systematic thieving for the sake of gain on the part of someone through whose hands our correspondence passes. We do not. however, feel convinced that it is on account of -theft, as in no case have we been able to trace any cheque or draft having been presented for payment, but all letters both in and out of New Zealand, and indeed all Overseas Dominions, have- been apparently opened and destroyed. At the present moment there are at- financial houses in the city of London, various amounts transmitted from New Zealand and other oversea branches, making in the aggregate £l5O, to the credit of the Navy League, for which neither the first nor the second of the notes of exchange has ever been received. The whole matter is engaging the close investigations of the Scotland Yard authorities and the Post Office Detective Department, but up to the present moment we have been helpless in finding out where the thieving has taken place.'* Jt jt Prosperous Times. The Stock Exchange, both in the Dominion ami in other countries, has been recently in a very depressed condition; but it is now anticipated that considerable activity will be manifested both on the London Stock Exchange and elsewhere, as soon as peace is restored. At present British trade is enjoying iuibounded and unprecedented prosperity. The editor of the “Business Prospects Year Book*' predicts that during next year industries generally will be work-

ing with feverish activity, and that ‘he year will constitute a boom period. The demand will be in excess of the supply, and prices of all commodities will be high, whilst wages will be good and unemployment will be reduced to a mini-

mum. It seems to be a universal feeling amongst business men that all industrial undertakings will make exceptional profits. The one disturbing factor is the uncertainty that exists concerning the labour question. Already there are indications that strikes may take place both in England and New Zealand unless more concessions are made to the cause of Labour. Apart from this, there seems no reason why the great depression that has hung over the Stock Exchange should not soon be removed. JI Jt War asd Christmas. One result of the Balkan war, which will be felt by everybody, is the fact that the price of Christmas puddings will be considerably increased. Such articles as currants, raisins, almonds and muscatels, have risen in price, and there is every probability that they will cost fully 4J. a pound more than usual. For a long time past the supplies of dried fruit have been steadily decreasing, and it is estimated that there will be thousands of pounds less this year than last. As soon as there were any rumours of war in the Balkans, the British merchants immediately set to work to collect" all available supplies of dried fruit. This was all right as far as Great Britain was concerned, but it has had the effect of considerably shortening the supplies available for New Zealand, as the British stacks are being held for British consumption. As far as can be ascertained, spices are more plentiful than last year, nor is there any probability of anv increase in the price of candied pec-1, inasmuch as these .supplies were ordered some six months back, and the bulk of them have already arrived in the Dominion. J» Jt Reciprocity With The Dunedin Chamber of Commerce has been discussing the question *of a reciprocal tariff with Australia. Mr. Reynolds brought forward a motion to the effect that the present is an opportune time for endeavouring to bring about a readjustment of the existing.tariff between Australia and New Zealand, and to place it on a more equitable basis, This resolution was carried, and it was agreed to hold another meeting and fur-, ther consider the matter of reciprocal tariff from all points of view. One of the most interesting parts of the discussion was the question of taking the duty off wheat. Several members expressed the opinion that such a step would kill the wheat trade in the Do-

minion and seriously injure the millers. Mr. Uarrawa. stated that he was quite sure all the millers were opposed to the duty being taken off wheat. Both the wheat-growing industry and the milling industry had grown up tinder a protective tariff, and to take off the duty would be a great hardship to the growers; in fact, it was highly probable that in such a case no wheat would be grown in New Zealand. Should any steps be taken towards removing the duty on wheat, both the millers and the growers would be heard at the Bar of the House when the matter came before Parliament. Jt Jt The Turkish Army. The Germans are now casting about for some explanation of the manner in which German methods have failed as regards the Turkish army. Opinion in Germany on the military position of Turkey has proved as mistaken as it was on the. occasion of the outbreak of war between Russia and Japan. The Germans were confident that the Turks would win; the Ottoman army was made in Germany and was looked upon as a Teutonic organisation. One of the leading German generals has now found an ingenious explanation for the defeat of the Turks. He says that the Ottoman army lacked inducement to fight its liest in the war because the men have been confident that- even in the event of victory the Turkish Empire would have nothing to gain. The Turkish troops have seen how after achieving their brilliant triumphs over Greece in 1897, Thessaly, though in Turkish occupation. had to be handed back to the vanquished foe. and Crete also was as good as lost. The Turkish army is said to have been magnificently armed, and to have had splendid officers, but they have lost the spirit, of the warriors of Silistria and Plevna, and it is owing to this and not to any deficiency in the army, the equipment, or the training, that the Turks have been defeated by men who were their inferiors both in equipment and knowledge of arms. The German Avibassador on England and Germany. The German Ambassador holds the view of the relations with England arc Germany’s supreme problem. Three years ago he contributed to one of the leading Reviews in Germany a remarkable article on the relati >ns be*ween the two countries. He said that the antagonism between the two nations was not due to any hate on either side, but purely to the fact that they were the dominant powers both in Enron? and on the seas of the world. He did not believe that the differences that separated

them conxi be obri'ter«Uf*&» either by paternal admonitions or Mell-meant feasts of brotherly love. On the other hand, he did not regard them as imposBible of solution.

British antagonism to Germany was primarily the artificial creation of British statesmen, who required a bogey to awaken modern England from the de- • adente so vividly described by Oscar Wilde and Mr. Bernard Shaw. It was realised by British statesmen that the conversion of the United Kingdom into a Capitalist State had brought ?ertain evils in its train. The Puritan spirit that had founded the British Empire had vanished. Its economic power, like the fecundity of British mothers, was un the wane. Statesmen were compelled, therefore, to devise some means of arousing the nation to a new effort. Knowing that fear was the best weapon with which to achieve this end they seized upon Germany both as an example and a scarecrow. They exploited it for lmperi.il defence and colonial federation and fiscal policy. As the supremacy of the fleet had long been the great British tradition, the na\a! authorities had not hesitated to misuse the German lleet for the furtherance of their own political fortunes. They w-mild loathe to declare war and destroy the German lleet and commerce, because they would thereby annihilate the bogeys wjth whose aid they were chiefly enabled t<» perpetuate their existence and popniiri<t Imperial schemes. J* Welsh Disestablishment. It seems highly probable that the clauses will be dropped from the bill for the <li-establi'-hnient ami disendownient of the Welsh Church. The Bill was introduced as a sop to the JJberal Nonconformists in return for their support of the Home Rule Bill, ji.ist as the Franchise Bill was to be a "op to the Labour Party. But many of the Nonconformists and some or the labour leaders are-strongly opposed to the disendowment clauses. They hast* their objections on the ground that the money was left for rcligfou’i purposes, they contend that the Welsh County Councils are not religious bodies in any sense of the term, and that to divert money left for religious purposes into secular channels is an abuse of tru>t. 1 hey are shrewd enough to see that if numev may be taken from one ielig’-m< body there is nothing to preven’ other religious bodies being despoiled in a similar manner. According to the ‘ rimes.** a definite agreement has been made between liberal churchmen at»d broad-minded Nonconformists to the effect that ail endowments, with the ex- ♦ •rpiion of tithes, shall be left to th© \\ : »I-h Church., and it is believed that the Government * will accept an amendment in this direction. Banks and Gilt-edged Securities. A matter of some interest to shareholders was brought up at the halfyearly meeting <»f the Bank of New Zealand in Wellington. Mr Mclntosh wanted to know. *in regard to the Government securities held by the bank, what these securities had cost, what was their present value, and what provision was being made for depreciation. The qiie-tion is an important one in view of the recent heavy fall in all British gilt-edged securities. How'great this fall has been may be seen by comparison between the prices of stock in l!H)2 and the prices of the same stock in 191 2. In 1902 consols stood at 98; to day they stand at 73. This shows a fall of 25 per cent. The same depreciation is noticed in British railway stock. The Great Western Railway 5 per cent, preference has fallen during the same period from 165 to 125. In brewery shares there is the same fall; Bass’s 5 per cent, preference having fallen from 130 to 94. ami Mviix’s 5 per cent, cumulative preference shares have fallen from 12 to 12- This is largely due to 1 he investment of British capital abroad. In the income from British capital invested abroad was 1*27 .OUO,000; today the income is: over £93,000,000. I »»•- h is naturally involved the writing off of large sums for depreciation of British securities. At the same time, though consols are so low iii price, they posers peculiar value as an investment for bank reserve. They can be sold for cash at a few hour**’ notice, and are practically a liquid asset. Fur thia reason it is thoroughly Mound banking to buy and hold them. The fall in

h»« douMless aff«eted banks adversely, but the Hauk of New Zealand has always made a practice of writing down its assets very carefully, and the shareholders may rest assured that there Is not the slightest ground for any uneasiness in regard to "assets'of the bank invested in British Government securities. J* J* Cables and Wireless. So great has been the development of wireless* telegraphy of late that the Postmaster-General, in discussing the future of the system, says that it is proposed to make arrangements for the transmission of messages from New Zealand to England for 2/ a word as soon as the Imperial chain of wireless stations is completed. At present no official information is to hand as to the details, and the matter will have to be further discussed, but during the last few weeks experts have staled that over long distances up to 2,000 miles, or more, wireless telegrams will be possible at a speed much greater than that of the submarine • aides. As soon as the station at Awanui is finished it is proposed to erect a similar station at the Bluff. There is

also every reason to hope that the conference to be held next year between the representativs of Canada, Australia, and New Zealand will lead to practical steps being taken for the laying of an Imperial cable between Canada ami Great Britain. The cable companies will doubtless feel the force of competition brought about by the wireless system. The present charges must seem to every one to be unduly high, ami. as none of the cable companies work to anything like the full extent of their capacity, it would seem that a reduction in rates might easily be made without any corresponding loss of revenue. An Imperial chain of wireless would be of strategical as well as commercial value, and the British authorities are recognising this. The I’aeilie is already "being linked up, and it will not be long before we have an All Bed cable route backed up by wirele-s stations. We may yet see tho day, so long desired, when cables van Im sent to any part of the British Empire for a penny a word. A Good Year.

The half-yearly meeting of the Bank of New Zealand was held at Wellington on Wednesday. The Chairman of Directors

stated that the profits for the half-year ended 30th September last compared favourably with those for the corresponding period of any previous year. A dividend at the rate of 6 per cent had been declared. Notwithstanding stringent financial conditions, the state of the Dominion’s trade and industries appeared to be prosperous. The season bade fair to be an abundant one, and the prices of our staple products —especially wool—were highly satisfactory. The prospects for wool were exceedingly bright for the coming season. The improvement that had recently taken place in the hemp market would no doubt result in renewed activity in the flax.industry. Trade statistics for the year ended 30th September last showed a gratifying expansion in the volume of trade for the year. Legislation would be necessary next year if the £1,000,000 4 per eent guaranteed stock, which matures on the 19th July. 1914. is to be renewed under the guarantee of the New Zealand Government. The directors therefore proposed to make application to the Government. requesting them to introduce in next se-sion of Parliament a bill conferring upon -hareholders power to increase the bank’s capital.

A Big Increase. A total of 28.790 boxes of buffer for the Home market was shipped from Auckfand by the Rotorua, which sailed during the week for London via Wellington. This last shipment brings the total export for the season up to 141.473 boxes, or 7O,73Cicwt, as against 113,706 boxes for the corresponding period last year—an increase of almost 25 per cent. A small shipment of 377 crates of cheese was also included in the Rotorua's cargo. The total export for the season is now 1,589 crates, that for the corresponding period last year being 2,476 crates- * No Funds. The Wanganui Museum authorities are in the awkward predicament of being without funds. For some time it has been impossible to add to the present collection, and it appears that there is now no revenue for maintenance. It is complained that the only sort of assistance received was a grant of a few pounds years ago, but nothing since. Residents have contributed the money necessary for the purchase of exhibits. It is now proposed to ask the Borough Council to take over control.

Quiet. The Federation of Labour.made a final effort to retrieve their position in WaihJ by directing members to apply for employment at the Waihi and Grand Junction mines, but were informed that the whole of the labour at present required had been obtained, and that in future engagements preference would be given to arbitrationists. At a mass meeting, of federationists members were given the option of joining the new union or leaving Waihi, and decided by an 80 per. cent majority in favour of adopting the latter course. In the meantime the Federation have resumed occupation of tho Miners’ Union Hall. The question of ownership will be contested at Jaw. There has been no disturbance. * Bread Famine Averted. Trouble between a section of the master bakers of Auckland and the Operative Bakers’ Union, in regard to working a night shift, threatened to develop into a strike and a possible bread famine last week. The position, in brief, is that under the Auckland bakers’ award, which has just been the employers had the right to work a night-shift. This right was not held by employers in any other district, and was taken away in the Arbitration Court’s new award in order to bring all tho districts into line. On. representations being made by the employers, however, the Court suspended its prohibition on night work for six months in order to give the employers an opportunity of introducing new plant to cope with the trade.' It was clearly understood, when the case was before the Court, that the suspension would be granted, but the men's union has since taken strong objection, A little extra .was paid for night work, but the men demanded double time. This the employers have conceded under protest, and the matter is to be brought before the Court for further consideration. Wool Prices High. There was a brisk demand for wool at the opening of the Wellington sales last week, and prices were about 2d a lb. higher over the whole catalogue, compared with the sale at Wellington last December. It is stated that shearing has been late on account of. the backward season, but by way of compensation the low temperature has reduced, tho quantity of grease in the wool and produced better market fleece. As tbo weather improves the clip will become greater, giving every indication. of another highly successful sale next month, even though last week's.high range of values may not then be quite reached. The growing attendances of British Continental, and American buyers afc New Zealand auctions must be gratifying alike to growers and brokers, Local selling, indeed, is becoming more and more-established in preference to consigning to London. The returns in cash are,- of course, practically immediate when -ales take place on the -pot: and there is no reason to suppose that the recent offerings would have yielded a fraction more had the sale been held. in London. Indeed, the chances are. tho other way about. The buoyancy of the wool market is bound to have valuable influence upon trade and industry in general. A For Eight Months. In the course of a speech on the occasion of a banquet at Tuapeka the Bon. Jas. Allen stated that the revenue for eight months ended November 30th was £6,401,340, as against £5,991.860 for the corresponding period last year. Tho expenditure for the eight months ended November 30th was £6.4.35,800, as against £6.292.540 for the corresponding period, 1911.