NEW ZEALAND FINANCES.

Ashburton Guardian, Volume 1, Issue 65, 24 February 1880, Page 3

NEW ZEALAND FINANCES.

{Home News.) The conspicuous success which attended the application of New Zealand for the last loan of five millions sterling lias been the theme of general comment. More than twice the amount asked for was eagerly proffered ; and severe disappointment was the feeling of many applying subscribers when they wore told they must be shut out. It may be that the fact of the Bank of England acting as agents for the loan, and receiving the applications, had something to do with the success. But those who say this in the way of reflection upon both the Bank and tho colony, forget two important points. The first is that the Bank of England would not, out of respect for its own national position, have to do witlx any loan if it were not satisfied of its absolute security. The next is that the subscriber's to new loans, as a rule, keep a sharp look out after their own interests, and make themselves very certain on their own account, before subscribing, that everything iarigbt. The Bank of England is a national institution it is true, but it is a corporation witlx interests of its own, which are only served by doing business ; and it is entitled to enter upon any safe and profitable business it pleases. No doubt it finds it both safe and profitable to act for New Zealand. Witlx reference to the general state of the finances of the colony, they arc not, it must bo admitted, so glowing as its friends would desire. The deficit for the year is likely to be much more than is quite comfortable. But tbe New Zealand is not the only Government in tins position in these times. The deficit with which the Chancellor of tiro Exchequer of Great Britain will have to reckon next spring will he formidable ; and the Indian finances arc assuredly in a troublesome condition. New Zealand is a young country, with vast undeveloped resources, and there is no danger of her not paying her way, though it may he as well not to force the pace of her development during the next few years. And, as we understand the matter, this is precisely what the colonial Government has made up its mind upon. There are to be no more loans for a long time.