GOLDEN BUBBLES— FROM A NEW CAKE OF SOAP.

Daily Telegraph (Napier), Volume 59, Issue 263, 9 December 1930, Page 8

GOLDEN BUBBLES— FROM A NEW CAKE OF SOAP.

H. IAN SIMSON.

(To tlie Editor.) Sir, — Where wealth accumulates men decay. Sir H. Beauchamp, chairman of the Ra 11k of New Zealand, says a liioratoriuni is not necessary; it is not wholesome or politic. The Hon. G. W. Forbes cables from England that there is no need for the Government to interfere. A v ell-known solicitor iu Auckland backs this up, but does not sign his name. ( I. can piek him even if tlie public cannot.) All great finauciers iu the world to-day blame gold as the cause of our depression. Mr Editor, permit me again to trespass on your valuabJe space, and l will give you niy vision of all these wonderful outbursts. Let me deal first with Sir H. Beauchamp, the mouthpiece of the B.N.Z. This gentleman stands out to-day as a paraniouut authority (par excellence) in the minds of the avei-age person in New Zealand and the Alpha and Omega in the minds of those who are dependent on overdrafts, or company promoters, especially aniusement theatres. But, sir, there are some people wiho think for themselves and are not frightened to assert and back their opinions against this giant in finance. I am one of these very huinble persons, /ind T am writing in no personal or vindictive mood, as I do not know the gentleman by sight even, although naturallv I know liirn by repute. Sir Harold Beauchamp explains that our experienee of the last moratorium should be a sufficient lesson to warn us against trying it agaip. I agree with him, as I suffered. The extension cost me over oue hundred thousand pounds in money and very nearly my mentality and life, so I elaim to know something ahout moratoriums and their ill-efEects. It was kind and cruel Qsometimes you have to he cruel to be kind), buc these mistakes should be milestones to victory, and if we hope to keep our Empire afloat we have to buikl from mistakes. No great man has ever lived who lias not had a failure. You cannot be great unless you have fallen. Let me say first if (and the people will demand a moratorium) I liad the handling of the position I would not worry. about the hogey of killing our credit in London. Tt might do us some good to admit the true position and not camouflage; it is 110 time_ for kid-glove tactics. Sir Hugo Hirst told me (when I was in London last year) that he and four others visited Australia in 1926, representing the big five in the financial world of England (who are, you must admit, almost as financial as the Bank of New Zealand with wool and butter at tlie present prices). Sir Hugo gained a wonderful insiglit into our so-called prosperity, aud he called Australia's bluff in 1926. _ Tliese gentleinen warned the financiers of Australia that they were drifting on to the rocks and told them quickl.y to put "their house in order (no threats ; just a fatherly_ warning to avoid panic). Well, ' did they lieed this warning? I say no. They deliberately or inadvertently conimitted financial suicide and to-day, sir, they are not only 011 tlie rocks, but are high and dry. Men like Sir Hugo count with my humble brain, and T came back to New Zealand to try and put my. own house in order. But, alas! dry rot had set in, and I am just propping up 0the verandahs (otherwise the mortgages) by demanding -a moratorium until I can purchase new supports. Now, sir. I suggest to Sir H. Beauchamp tlie following idea, and first _ I want him to _ admit the lioneSt trier is worth lielping. (Tf he won't admit this I am only wasting ink in addressing my remarks to him , and expecting lielp for the producer in New Zealand.) Let Sir TI. Beauchamp request the Government to pass immediately legislation and appoint a board of inquiry (with power to aet). Say we pick two business men (and we have them) in each province of New Zealand, with a judge of the Supreme Court as chairman, to hold sittings in each centre to inquire into the financial position of the men who are trembling on the brink of financial ruin for want of lielp ? Let these unfortuhates ' stat-e their cases, backed up by audited balance sheets on pre-war values, and if their position requires protection, then it is the duty ' of the Government to help, and not destroy. The man who cannot pay his rent and interest must go under, but if we can let us save the honest trier from the registrar selling 'his all because the mortgagee's mortgage is due (and he won't renew). Why? Because he sees more attractive investments, such as civic tlieatres and baby calf golf amusements._ If we can save the position^ then it is our duty to stop these unfair tactics. Mr Editor, 110 harm could be done to a man's credit if he tried to save his son from a similar position? Why, big men would conie to the father's rescue and say, "Splendid; carry on. Your son, he is a trier." Well, sir, tlie genesis of public life, political life or any successful and good life must he based 011 home life ; therefore 1 say to Sir H. Beauchamp : Get down from your high and mighty seat, and lead kindly tihe good thought and preacli the Sermon on the Mount. What a _ chance of a big man, Mr Editor! With your permission I will deal with the other question in a later issue and prove tliat a harrel of gold is not so valuable as a buckeb of fresli water when you are shipwrecked and far from the land. That is why the great king pins of dear old England let America, France or any nation have the gold. Deari old England has a first mortgage on 69 per cent. of the world's land which produces food. She has a Navy (God keep them afloat) and the Navy can say, "Keep your gold and eat it." England can feed herself, and the world would say, "We must have food." Phen England will show her greatness bv feeding the populace in excliange For their gold. What a world this is — 1 world just full of bubhle, but never m hetter foundations tlian it is toJav. Gold is not the cause of this depression. As we sow so shall we reap. What shall the harvest he? Wonderful leople those old birds who compiled ihe gretitest selling Book in tlie world, r/iF. ({nnf. iiYjrlArs+nnrl ,5 T stm !p+p

Napier, Decemlicr 8, 1930.