The Gisborne Times. PUBLISHED EVERY MORNING. SATURDAY, JUNE 19, 1909. THE COMMERCIAL OUTLOOK.

Gisborne Times, Volume XXVII, Issue 2532, 19 June 1909, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. SATURDAY, JUNE 19, 1909. THE COMMERCIAL OUTLOOK.

The annual, report and balance sheet of tlie Bank of New Zealand which we publish in another page are of general interest to the community because of the special manner in which the welfare of the Dominion is involved with that institution. Under the circumstances it is gratifying to note that the balance sheet discloses a state of affairs that should be entirely satisfactory to the shareholders, particularly in view of the fact that the results set forth have been achieved during a period of depression. Apart from the indication given of the progress of this important institution the annual meeting has of recent years become of general interest because of the very useful ■ summary of the commercial condition of the Dominion which the Chairman has been in the habit of giving. No man is in a better position to judge of the commercial prospects than the head of our chief hanking institution, and Mr Beauchamp has the- happy knack of embodying his views in a clear and striking fashion. Moreover, in giving heed to his utterances there- is no occasion to discount their valuo because of the source from winch they emanate. When the Prime Minister mounts the public rostrum and discourses on the wonderful prosperity of the country in his endeavor to give evidence of the wisdom of his administration, he frequently ruins his case by trying to prove too much, whilst the Opposition orator is inclined to go to the other extreme and depict a doleful state of affairs as the result of governmental mismanagement. In these circumstances it is refreshing and wholesome to learn the mind of the cool man of business who sits in the bank manager’s chair as to the true financial position. Mr Beauchamp touches in brief resume all the chief items concerning the Dominion’s commerce. He notes that a very real depression has been existent during the past twelvemonths, and ho attributes it chiefly to the bad condition of trade in the old world, accentuated by the undue inflation of land values in New Zealand and by the extravagance of our people. In regard to the values of land Mr Beauchamp draws attention to the warning ho gave in 1905 of what might transpire and in view of subsequent events lus words at that time were certainly prophetic. Under the circumstances more than ordinary attention should be given to the warning he makes now in regard to the dairying industry. This branch of the Dominion’s work is at present, in a satisfactory condition, but Mr Beauchamp fears that with fresh countries coming into competition in supplying the world’s markets values may recede, in .which, case the high priced holdings which at present are devoted to the industry may prove unprofitable. In other words it is in his opinion foolish for persons to pay from £4O to £6O per acre for land for dairying purposes, The Chairman’s view is that cheap land spells prosperity, and had he not been disinclined to touch upon political matters ho would : probably have added that the tendency of the present Government to increasingly tax the land is directly opposed to the liest interests of the country; Mr Beauchamp adds that until land is bought and sold on the basis ol its productive value in normal times, wo cannot hope to see that equilibrium necessary to maintain commercial stability. In reference to the future the Bank Chairman finds a good deal of ground for encouragement. The depression in the old world was in the first place instigated by the financial stringency in America, and he looks to that country to set the pendulum swinging m the ' opposite direction, As is pointed out in his address, the business in the United States lias shown marked improvement recently, and the iirtual settlement of the tariff question is expoct-

ed to act as a further stimulus. Wool has recovered itself splendidly and prices for May of this year were from 30 to 50 per cent higher than they were for the corresponding period of 1908. In this connection it is interesting to note the large increase in the stocks that have been taken by Continental buyers, for it serves to remind us that the Germans, of whom we have been saying many hard things mf late, are first-class customers for our wool. Bradford buyers have, not been brisk bidders, and this induces Mr Beauchamp to anticipate at least a maintenance of present values for the English manufacturers are apparently not overstocked. In regard to the low prices ruling for frozen meat the report shows in a striking manner the tremendous increase in shipments from the Argentine, and suggests that we must be prepared to faco in the future more severe competition from that country and also from Australia, than we have- had in tho past. This emphasises the need of enlarging our markets and Mr Beauchamp urges the necessity of concentrating our endeavors on the opening of Continental ports to our meat products. There is no doubt that if this could be achieved Ihe outcome would bo of enormous benefit to this country, but how it is to be brought about while one section of our pVcple-rrants to boycott German goods and another section wants us to forthwith make war upon the Germans is hard to conceive. One aspect of the report which is of special significance, is that referring to Native lands. Although the statement as a whole is essentially non-political, Mr. Beauchamp finds it impossible to refrain from making a reference to the terrible waste which is going on in the Dominion through the non-utilisation of the vast areas of Maori holdings which are at the present time, lying unproductive and which are retarding settlement in the districts where they are located. It is to he hoped this clause will receive some consideration from tho powers that be, for it is quite time, an end was put to a condition of affairs that is disgraceful to all concerned in tlie government of the country. Mr. Beauchamp touched upon many other important matters, and his address should provide food for careful reflection upon the part of those who peruse it.