CHEAP MONEY BORROWING.

Dominion, Volume 5, Issue 1416, 17 April 1912, Page 5

CHEAP MONEY BORROWING.

Sir,—Tho article on cheap money and settlement that appeared in to-day's issue of The Dominion is deserving of our best thanks, inasmuch as it is , so thoughtful and comprehensive, a paper such as anyone would be proud to l>o the author of. Evidently written by one who has studied and mastered his subject, it would almost seem idle for any one else , to presume to make any suggestions arising therefrom. It may be, however, that one might, be permitted to remind the writer that cheap money is not always a desirable thing, as* it tends to extravagance. We in this Dominion are beginning now to fool financial pinch. It was stated by Sir Joseph Ward, at Takapuna, I think, that if wo ceased borrowing it would cause something more than a financial strain. It is this unlimited borrowing that has been the curse- of the country. Wo are told that much of it is remunerative, the railways being given as an instance. Well, wo are told by those who knew that the book-keeping of tome of the Government Departments is so' faulty that it would amaze peoplo to learn when the proper timo comes how money lins been spent, or rather misspont. In the Railway Department it has been freely stated that items are charged to borrowed money that should have been charged to revenue. The annual loss in this Department is said to be near half a million a year, besides this, there is leakage in other Departments. Fares, etc., arc paid by other Departments to the one in question, nnd this it is credited with. After all, it is simply taking the money out of one pocket and putting it; into another. II is said that the Hon. Mr. Millar, knowing nl' this, wished to make-sweeping alterations, and make tho railways pay. This the Government did not agree to. This caused friction, and hence it is that tho. Hon. Mr. Millar is not the Premier of a Government that is in the astounding position of not having met Parliament. Perhaps ho is bettor out of it. The public debt is now over SO millions. To which must Ijo added money mured by mortgage under tho I/Mid Transfer Act up lo March 31, 1011 dec Parliamentary Paper lI.H, 1011), amount-, ing to .tKI.fiHO.GM, of which over-twenty-four millions is a charge on iheWellington land district, Cvnterbury .coming next Willi .C17.87!M:)9. To this must iiaain lie added loans to local bodies. Wellington City's T.oan Hill is over .LIOOO.OOTI. Take up any issue of the "Mercantile Gazelle." and see the rales of inlere«t charged on advances, lien*, etc.. ranging from li to 0 per cent. Truly, this Dominion lui> a large annual amount to pay as interest. Mo>t 0 C this is Hie resul'-' of the Inrax amount? borrowed by the Government. T.ocal bodies and private individuals' followed in the sine rpokleis manner. With the Advance.., lo Settlers' Act, moaey became cheaper (odJj; for i time, u" Gorman;

round when she received tho .£200,000,000 from France Depression followed, as it will bore. So much land has been purchased, s-o Tiiiinv homos built mi credit, thiit the inevitable will happen. Tho weakest will go to the wall. Commercial Humility, which has become sapped (hrough so much reckless, borrowing, will receive u staggering blow, which will cause it. to reel. Meantime- all interest has to be _found and paid. Those who have advocated caution are scouted. It mils*, bo remembered that it is not (lie cautious who have given their votes for the Government supporters—Hint is the act of those ..who wished to see moneys borrowed and .expended, for there is «lways the chance, of getting something when money is plentifully circulated. 'Die future is not regarded by those- who suck the ornngo dry.—l am, etc., A NOKTIT ISUNDER. April 1.1,-1912. V.S.—lt is tlio .railways in the North Island that are handicapped and made to pay for the expenditure thereon in the .Middle Island, one of which pays (lie large sum of six shillings per cent, by way of interest.