The Dominion. TUESDAY, MAY 25, 1909. "DAMAGING THE COUNTRY'S CREDIT."

Dominion, Volume 2, Issue 516, 25 May 1909, Page 6

The Dominion. TUESDAY, MAY 25, 1909. "DAMAGING THE COUNTRY'S CREDIT."

The. Hon. J. A. Milur has of late given many proofs that when ho escapes from Wellington he is capable of stating facts as thoy are, as distinct from facts as the Government would'have them appear.: It is,with; no surprise, therefore, that wo find, in looking over his recent speeches on the West Coast, as recorded in the Christchuvch nowspapers, that he has been talking of the country's credit with the refreshing frankness that has distinguished his dissent from the Peimr MiKister in' tho matter of, the railways. The Greymouth Harbour Board waited on' the-Minister onrFriday week last to beg for the Government's assistance in' its financial distress, and Mr. Milmh, in giving his reasons why the' Government could no longer act the part of fairy godmother, had these very interesting remarks to make: . ■ The position now was that the country had got to' that state when its debt approximated £60,000,000. In e<-ery other part, of Australasia, and oil the platforms and in the press of New Zealand, this was being constantly trotted out, with the inevitable result tViht if it went much further it might influence the Dominion's oredit in the Old Country. The Government werp* compelled to get money for absolutely necessary works, sucTi as tho construction of now railways and tho formation-of new roads, and this necessitated the Government going on ,the ; market for at least one mlUiori per year, and on jomo occasions b miulon and a quarter. It

was. not taken, into aaconnt l>y oritics that a large portion of the money borrowed was lent to local bodies, and that a large amount was invested in really reproductive works. It was not a question yet of tho CTedil of the Dominion being affected, but -when it was constantly being dinned into the ainde of the Home people that tho Dominion had borrowed an average of two-and-a-half millions per year, with only n million of population, it was only a matter of time when it must affect the country's credit. . It is not necessary', we should say, to explain that tho risk to the country's credit is seen by,Me. Millar, not in the constant advertisement of our public debt and public borrowings, but in tho debt and borrowing themselves. At all events, it would bo an insult to the Minister's intolligonce to suppose that ho meant anything bo ridiculous as that the danger lies in the publication of financial facts. No doubt Sir.Joseph.Ward will bo annoyed at his colleague's frank confession that the facts of the country's financial position-are full of danger to the country's credit, although it is probable that Mr. Millar will not bo subjected to tho : same violont abuso as was heaped by Sir Joseph upon the critics who ! have been saying, in effect, preoisely what Mr. Millar has been saying. To those who, like oursfelvcß,' have persistently kept the public informed of the true state of affairs, it must, be distinctly cheering to find their warnings so fully endorsed by a responsible Minister. If the figures relating to the public debt of New Zealand are,-as/'MB;.MiiLAU says they are, "constantly boing trotted out in every other part of Australasia," the natural inference must be that those figures 35tft»otoriousand very astonishing. ■ The, public is well awtro tnat if the last sentence in our quotation -from: Mk. Millar had been uttered by an opponent of the Government, tho Prime Ministeb would have talked angrily of "treachery" and. "disloyalty," and "anxiety to injure the country's credit." And this brings us to a point which it is,well to have. emphasised, and which Mr. Millar's language affords us an opportunity of emphasising. The Prime Minister's indignation at every publication of tho facts relating to ihe country's finances is really an impudent presumption upon the public's'ignorance. Ho would havo the public believe that it is the publication of tho facts, and not the facts themselves, that are. unpleasant and likely to be injurious to the Dominion's credit. Surely nobody is so, foolish as to supposo that money circles at Home are ignorant of the finances of a" country which is always seeking to float a new loan? There is no necessity to "din into the minds" of the British money-lenders the story, of Now Zealand's borrowings. They need no special incitement to .ascertain 'tW -facts'- about ' the country to whichthey lend their money. The criticisms of the. Government's financial methods which Appear in our ,columns... arc. wholly- designed for the information., of people who really stand in, need of it, namely, the people of Now: Zealand. Our purpose is to awaken the public'of this country to the. serious danger that exists for them in the financial rapthods which have been followed by their Government for over a dozen years, -,and we bolievo -that*'-, our efforts , : have' not been, wasted. It iis not a question of dinning facts into British ears—the owncj.s.jO.fi the ears havo a special interest in obtaining the factsj without the aid of newspapers— but of,. dinning facts into New Zealand oars. Tho.wai'ningbyMß. Millar ,k tho best justification of the crifcioism that has caused so much.indignation in tho'PltiMß Minister.' We believe' that even -Sir Joseph Ward will ere long be forced to admit, the truth of our contentions. ' He has .already been compelled, to.admit by his actions the charge of scandalously, extravagant administration which wo have constantly urged against the Government, and we have hopes that during the. coming session'h')'will. be.made even more fully alive to; the necessityfor the country roturning to sane and sound financial methods. ' .' ■ ■ .