THE COUNTRY'S CREDIT.

Dominion, Volume 2, Issue 425, 6 February 1909, Page 6

THE COUNTRY'S CREDIT.

THE SHADOW7OF-DEPRESSION. . ' To! THE'EpITOE. ' r ,^ir,-—Your; ■ morning: contemporary -has been pleased : .to' plunge "info, tKe controversy asto the position,bf-the.public .credit. .Hβ . reproaches and blames'critios for'saying that . our-credit).isnot'BO good- as-it.iwas/ai few years ago, and concludes ;by asserting that tt''is absolutely sound. ' He'tells ub that for a couple bf'years back the'mdney-market 'all over, the •- world- has been .subjectrto 'disconcerting fluctuations. : That' is;. no' : doubt, a , fact, ;Oiit is'rather beside the , question "at ' issue.' .'Although' the' Old" Wdrld's ,; 'finan6ial : of: two years ago has only remotely ' . 'affected-.'New Zealand;,ye't.'th"e.'extreine';scar- • city; of ; money ._in Zealand :has; noW . brought .-.depression to-our. doprs, and it is cowardice for anyone -to-"_deriy,-the right and duty 'of- any • citizen• to .critically .examine,the present: position. Your contemporary /'forgets '.that' i this-borrowing, in , ; th.ese'. colonies on .short-dated 1 bonds at four per 'cent:'began, in -1900; by' the "raising'of half ; million at. that-figure. This was-repeated in'the - following _year. The. 1902: Budget reports a/failure.in iso-: far :that only; a":million was got that year out' of; oneand.a half millions offered on .-• the..London market; at ; 3 per cent., and; the .< balance had to' be got. at four, per, cent.. -In -,1903: a. million "oveiv counter sales" were effected in the colonies '■■ at four per cent. There .was - similar, borrowing' reported in -1904, and-we are>told in 1905, when :the .debt had been: increased by £2,339,304; that the .financial agents . had :been advised that a'3J per cent, loan' in lion-; . don;TObuld.:not:;net : bver. : £92 10s.:; On this, a'million'-four per:cents."due on January;l, t 1912,iwere. put /on .the London:, market and sold,;at- par. . Mr! Seddon'- described this, as a splendid:- result; one which.: demonstrated that our credit iwas-as good as everr-a rash statement which even • these. Government admire'rsVevidently do' not' believe.' • '. ' ' ■ '.Now, my object , in .'addressing you on'the 1 ' subject; was, to, get our understood.' It is-uselesß; to ..shut-one's', eyes'to the.truth or tb::ou'r real position. , -To-day, with no material reduction ; 'in.'the. country's exports, /the shadow.'of. depression is upon. us. : . The bank - returns; prove -our; reducepf -financial po-sition,'which-those engaged in business and industries;:otherwise; jonTy- know- too- well. The Government,; by. its colonial borrowing, has! raised jnterest--and 'eshausted, the-bank funds'onwhich,'.enterprise ;largely 'dependedAs .large :buyers;bf'.tbwn!'ahd;'ooiintry ;, land, .Ministers'have; forced;'.'up; the'price ;arid'dis'-' : turbed .'economic relations. , .!', By., their : . labopr. ■,measures-'"-theyhhaverharassed..a^d;knocked ' . the. -heart.veui; of .employers,.- and,',-, '• .over- ■ ■ . shadowing.- ■ have..brougKt this.^position: upon >the!.couni'try.■-• '■■■{ ''■.-•'r ■-'~ ''■'•\' : ::'< How-do 'Ministers .now; .prbpbse.'to 'restore , prosperity'?', : .Neither. , ., the- setting,: up : of "'a' . passing, of; ap'offier-,.Korroving,Bill-.will,,re'viMse-the..'community : br ; restore,j.c6nfiden'ce' v .':'Tiineialpne l'.mli-, te11,! , but.the/r>bsitibn;'is.'critioal,.,'afFofdin'g a : great ■opportunity for auy.ilatent, statesmanlike tal- ' ;ent amongst .Ministers.,'L may..be;, and trust. , -! am,-'wrong;- but.-I fear .that while , . further borrowing:;is-jpossible.V-the '.thoughts!' .of Ministers will not' , range*beyond'; 1 ..except ! on ,voccasions ."when;:, "with ! Micawber-like ■ thankfulness; }they 'have' succeeded: in' , effect- '■ >ing/a..-.renewal.. Still,/ : the position'oahnot ! ■ 'last, iand again I ■ sav; it-demands.-theiatten-. ■' ;tion-'of !eveTy;;gobd:citizeh;—lam,'etc.;,' ! ;: ; ; .February s.;:'■ :.,'I, ;>;.■;. .v:,;;!' : ,'■;;■/.-■:>,,;. '