Review of Reviews, 2d/3/06. 



Topics of the Month. 



'■51 



tical politics, but, in my opinion, if it is adopted the 

 income should be used for the benefit of the land 

 and production, and especially in the reducing of 

 railway freights and in facilities for exports." 



'■ Was there any other thing that attracted ytiur 

 attention especially ?'' 



■■' Well, I must say that the Public Trust Office in 

 New Zealand commended itself to me very greatly. 

 I was surprised at the amount of business that is 

 done with the Government. A great advantage 

 about such an institution is that, being under Go- 

 vernment control, there is no fear of Trustees ab- 

 sconding with money, or putting it to wrong uses. 

 One striking feature in connection with it is that 

 the Trust Department endeavours, as far as pos- 

 sible, to have estates left so that it shall be free 

 to invest moneys as it thinks best without any 

 specific direction. In such case the Government 

 guarantee all funds. The result of that is that the 

 Public Trustee invests all his funds, except those 

 under instruction, in gloho, and is able to give 4 per 

 cent, upon all such moneys lying to credit of bene- 

 ficaries." 



'■ That is not a bad return, year in and year out, 



and a much better one than the average investor 



would get, considering that he might have to wait 



for good investments, and that he would be subject 



to fluctuation and risks," I said. 



'■ I was pleased to learn from Mr. Poynton, the 

 Public Trustee, that out of nearly two millions' 

 worth of securities only about ;^i 00,000 was in- 

 vested in Government Funds." 



"Did you find the Public Trust Department shut 

 out any other private institutes of similar 

 character?" 



■ No. In fact, a director of one trustee company 

 told me that the vast amount of business done by 

 the department really helped the companies, 

 as it educates the people in the habit of leaving 

 their estates in the hands of companies rather than 

 private persons. I am quite convinced that Vic- 

 toria might very well follow in the footsteps of New 

 Zealand in this respect, and establish a Public Trust 

 Department A private Bill has been introduced 

 each year for many years in the British Parliament, 

 but vested interests always squeeze it out." 



■' Did you enquire at all into the grading system 

 adopted by New Zealand ?" 



•' Yes, and I was quite satisfied with it, and 

 watched the butter-grading especially at every port. 

 There, grading is compulsory, and the Government 

 undertakes the grading of almost everything that is 

 exported, with the result that better prices are 



gained, and the markets on the other side of the 

 world place more faith in shipments." 



" Is there any likelihood of that being established 

 here ?" 



•' It is certain to come, as the old prejudice is fast 

 dying out. It may interest you to know that we al- 

 ready grade in Victoria for persons who desire it, 

 and, although there is no compulsion, the number 

 of people who use the Government grade is becom- 

 ing greater every day. We have . recently had a 

 large number of applications for the Government 

 grading of grain and other produce, such as com- 

 pressed fodder, onions, potatoes, and so on, and 

 exporters are beginning to realise that the certificate 

 which the Government gives them is of very great 

 value. It is proving to be a State function which 

 is really necessary in the interests of a good export 

 trade. With regard to the butter industry in New 

 Zealand, I found that the whole of the butter was 

 sold on the Government grader's certificate, and one 

 result of that was that New Zealand butter realised 

 top prices in the home market." 



■' I notice that you have become deeply interested 

 in the cultivation of New Zealand flax?" 



■' Yes. I think it is an industn,- which we might 

 very well take up. In New Zealand famiers are 

 beginning to plant flax, and are not simply depend- 

 ing on the natural growth in the great swamp areas 

 where it grows so prolifically. I was told that last 

 year the industry had increased to such an extent 

 that over three-quarters of a million pounds' worth 

 of the fibre was exported, and that while some years 

 ago there were only about 100 mills in the colony, 

 there are to-day 400, employing some six thousand 

 men, and one great advantage about the industry 

 becomes evident when it is remembered that of 

 these five thousand are unskilled. As showing what 

 a great field of enterprise is open, the American 

 people last year, in spite of the fact that they are 

 supplied with Manila hemp from the Philippines 

 duty free, bought ;^i 10,000 worth of New Zealand 

 flax, on which dut\- had to be paid. There are so 

 many Crown lands in Victoria well adapted for the 

 growing of the plant that I hope in a little while 

 fanners will take up the cultivation of it. One 

 estate I heard of in New Zealand, comprising 2300 

 acres, had five mills engaged in working the flax 

 crop, and, although it grew naturally upon the land, 

 which only needed draining, a royalty equal to 

 ^9 5s. per acre was paid. This was a high return, 

 but there is no doubt growers are . doing well. 

 I am satisfied this is a matter which might very- 

 well be taken up in many parts of Australia, with- 

 out any detriment to the industry in New Zealand. 



