THE BIG LOAN.

Dominion, Volume 4, Issue 1037, 28 January 1911, Page 6

THE BIG LOAN.

MORE ABOUT ITS RECEPTION. PRIME MINISTER'S IRRELE- ' VANCES. ' Spaco precluded us from giving yesterday tho Prhno Minister's attempt at Stratford to quote . British newspapers . to show that tho . London "Times," the "Financial Times," tho "Financial Review of Reviews," the "Morning Post," tho "Westminster Gazette," tho 'Manchester Guardian," the "Daily News," and the Birmingham "Daily Post," wero all wrong in describing tho loan as a- fiasco and a failure. v "I fully recognise," ha said, when dealing with the subject, "that tho policy of the Opposition for many years has unfortunately been to try and gain office by deliberately discounting the financial position and endeavouring to create an impression that they could do very much .better." Later when, on the same subject, Sir Joseph Ward said ho wanted to put before tho public tho fact that wo didn't hear tho Leader of the Opposition in, England or tho press supporting him stating that those countries (India, Ceylon, Straits Settlements), in which tho credit of .England was directly involved, where loans giving a wider margin of profit to the investors than our loans did, and where tho underwriters had taken the greater proportion of it in two cases and 50 per cent, of it in tho other—wc never heard of them crying "stinking, fish" and 'declaring that tho oredit of these countries was injured, and finding every conceivable reason to say things to their detriment, to mako. political capital out of it. There was absolutely no cause whatvor in tho case of New Zealand to justify tho pessimistic condemnatory speeches and articles—unless it bo recognised that they wore for political purposes. Thero had been no statements published in English papQrs, so far as ho had been able to see winch questioned tho credit of New Zealand. It would not bo forgotten that the Opposition iu tho House tried to forco him to disclose matters that were then confidential, and it would havo been unfair and improper having had the loan underwritten and before it was upon the market, for him to havo done so. As the Leader of the Opposition and a section of tho press.had been quoting London papers, he would also give some extracts from them regarding tho loan.

The -London "Standard" of Noveni; bcr 24 said: —"Looking at tho matter in all aspects, and after cousiderable experience of the London money market, tho writer of this article is compelled to confess that both the borrowers and thoso who acted for them in this country are to bo congratulated upon tho skill with which these conditions havo. been handled."

. "Tho World" of November 15 said: — "Hearty congratulations must be awarded Mr. Scrimgeour on his success in getting the underwriting of tho New. Zealand loan just before ther breakdown of the Conference. It would have been a hard matter to have arranged it afterwards. Applications for the loan will close to-morrow, and it - will be really wonderful if the underwriters' escape without a good proportion of it." ."The World" on November 22 said: —-"The fact that tho underwriters of 3} per' cent. New Zealand debentures wore saddled with over 93 per cent, of their applications is not so black* as it is painted. The prico on tho morning of the allotment quickly recovered eighth, the explanation being that tho underwriting- was completed- just before the break up of the conference, whilo tho offer of the stock took place when tho'early dissolution of Parliament had become inevitable. :

The "Financial News" said: " . . A momentary set-back for tho financial arrangements of the plucky littlo southern Dominion, but it is only momentary. Tho colony, is enterprising . and progressive, and the security of its loans undoubted. There is no'occasion for discouragement."

Tho "Financier" of November said: "Politics continue to kill business. Every investment seems to suffer, judging from tho fact that tho New. Zealand loan, which was expected to bo such a brilliant success, and' of which the underwriters havb been called upon to take about 93 per cent;' Probably they will not grumble as the security is. excellent, and in duo course the public no doubt wiil be paying a premium for the stock which is now being offered at quarter per cent, discount." Tho "Financial Times" (of November): "Of: courso tho issuo camo at an unfortunate time. . . . The explanation is to be found not in tho terms, which wero unsually generous, but-in tho general disturbance occasioned' by the constitutional crisis." ■ ".' Tho "Financial News," of December 1: "When 6no comes to think of it,, what better security cau tho investors demand than, say, tho Dominion of New Zealand, with all it represents. New Zealand ■ has a national debt of about 77 millions, which has accumulated in its 70 years of existence.' But nearly all of-this' money has been .borrowed for reproductive purposes. Nay, within tho past 18 years 82 per cent, of tho borrowings has gone entirely' into .reproductive works, such as advances to settlers, loans to public bodies, State coal mines, Nativo land purchase, etc." ■ •

Ho repeated that so far as ho had seen,- none of the London papers had questioned tho credit of.New Zealand, and uono had done other than suggest that wo had been successful-in obtaining tho loan on tho terms wo. had; that tho causes, which led to tho. public not relieving tho underwriters was not a question of tho stability of tho country. The causes wero stated in the newr.paper extracts. Nono of them had attributed it to tho position of the Dominion or to any action of the Government. It had remained for tho opponents of tho Government to. suggest these wretched causes hero in this country. In that respect we had a repetition of what took place when the financial depression occurred a few years ago. .