A BORROWING FORAY.

Dominion, Volume 2, Issue 424, 5 February 1909, Page 4

A BORROWING FORAY.

By way, ,it would almost appear, ; of commentary upon" this current discussion upon,the credit of New Zealand in money circles abroad, there comes a cable mcs-' 'sage,' which we print in'another column, regarding; the Prime Minister's recent borrowings in Australia. The Now South Wales Treasurer, Mr. Waddell, has complained that N<sw Zealand and other States, are'oxploitirig ,the market by selling thoir stocks up t6 4 per cent. "His Government," he said,'had not increased the rate of interest paid on stock issued by the Treasury; realising; the vital < importance to traders, and others of keeping the interest rates low. If neighbouring Uovcrnfnenls continued . to exploit the market by outbidding in rates of interest, New South Wales'might be forced, in self-defence, to raise her rates." It will bb interesting r to hear. what-.Sir Joseph Ward, will have to say .on the subject. On Thursday of last week x we' quoted some observations upon the New Zealand invasioty from thb Sydney Morning Hefnld, which. SM(J,;tliat the New Zealand Government had . placed £250,000 ; 4 per cent, stock in Sydney and Melbourne "at a price, that has. not been disclosed," but that was materially above the rate that

the 'New South Wales Government had been paying. The Herald predicted that any further action, of this kind would lead to an increase of rates, and it now appears that that is exactly, what will happen as a result of,the Prime Minister's readiness to accept hard termsl Sir Joseph Ward knows as well as anybody that it is risky to; send up rates. In October last, at any rate, he said at. Winton:. "Monoy is a very difficult thing to handle and very sensitive. .The moment one touched it, and started putting rates, up, one produced widespread effects, that, like the boomerang, came back r sometimes and hit the people ' who caused them/' It is unfortunate that lie' does not act so well as he preaches.