The Ashburton Guardian. Magna est Veritas et Prevalebit. SATURDAY, JANUARY 13, 1883 The New Zealand Loan.

Ashburton Guardian, Volume IV, Issue 841, 13 January 1883, Page 2

The Ashburton Guardian. Magna est Veritas et Prevalebit. SATURDAY, JANUARY 13, 1883 The New Zealand Loan.

When the news came the other day that only little more than a ninth part of the Victorian four million loan had been tendered for, it was natural that fears should be entertained lest our own loan of one million might meet with as little success. This fear, however, has not been realised, as we learnt yesterday that over the amount had been tendered for at a price above the minimum. This is gratifying not only on account of the money which will shortly be put in circulation in the colony, but because it is evidence that capitalists at Home look upon New Zealand securities as safe. And it is worthy of note that this last loan has been secured upon more favorable terms than was the previous one, of 000,000, which was issued at 1 os. When the Government announced last session that it was their intention to borrow more money for the purpose of carrying out public works and to increase immigration, a cry was raised against the policy, and it was stated by not a few that England would be found unwilling to advance so readily as she had been in former years. No reasonable person who has given the slightest thought to the subject could doubt that New Zealand could obtain whatever money she required, so long as she was able to give ample security. The only question is whether she is justified in borrowing, and this question has been answered in a thoroughly satisfactory manner by Sir Francis Dillon Bell in an admirable paper on the public debt of Australasia, read before the Colonial Institute in November last. Eighty-six millions seems an enormous sum of money for colonies which fifty years ago were little more than a geographical expression to owe, but our Agent-General pointed out that while the debt has increased, so has the revenue. In fact, we have been borrowing money at four and five per cent and our annual production has increased thirty-three per cent. When the question is asked, could we have developed our resources had it not been for outside capital? the answer is, emphatically, no. So long as we take care that the money accruing from loans is expended upon reproductive works, we need not fear to borrow any amount that England is willing to lend us, and we may be sure that while we can give her as good security as we can now she will be only too glad to find so excellent an investment for her spare capital. Sir Dillon Bell shows clearly that our chief hope of progress lies in the increase of our indebtedness, so long, of course, as the money we obtain from outside is spent judiciously. Take for example the last twenty years, during which time, as has been mentioned above, the profit accruing to Australasia from loans

has been at the rate of: tyrenty-eipt or twenty-nine per cent. If at the end of ten years the debt shall have increased to 250 millions, our profit will be in the same proportion. Then, again, we have the prodigious advantage over European countries, in being so far isolated from the rest of the world that it is next to impossible for us to be called upon to expend revenue upon what has been such a drain on older countries and has been the great cause of the swelling of national debts —namely, war with foreign nations. All our money can be used for developing our natural resources, and how great those resources are it is impossible as yet to estimate, each year bringing forth some hitherto unknown source of income. Sir Dillon Bell has done the colony a service in bringing these facts before the English public and it may be truly said that never has the real position of New Zealand been so clearly enunciated. We are indeed fortunate in possessing such a man for our Agent-General, and we have little doubt that the success of our loan has been in no small measure due to him.