THAT £4,000,000 LOAN.

Dominion, Volume 5, Issue 1462, 10 June 1912, Page 4

THAT £4,000,000 LOAN.

Year after year. we;\liayft rbecii £& customed to 'p.rati'iig.' and boasting of termson which tlicy hayp^uccee v clftd , . , jn , :^ais.- i ing Now the ipon'S;' don market. Wo*h'ayc : be.en' cprnppllpd.; from time to the Ministerial s'tajtemonts'',h"av(S:. .bedri : little more than ;yain;and ; ;ujle ing. The procedur J b. : iusjfaHy' s ha'B: : b'eeij-; to raise loans at"a/sepmmgly; low rate of interest;' ..and,';.to: : ;'attcmpt. ,tp : ; delude the public-intovthe-belipfrtliat. New Zealand was: ikblo- ttlirovigh tKa\ genius of its EirStfcb; Min'istpr to:, borrow on better;';t«rms'.;tliah 6;'ther'. Dominions. As>a'mattef'i*pfVfac'tr^f : course, with theso;;. : low-rate loan's, a,' substantial to bo allowed, thb>ef£ebfc';pf\%.hipH(:li^s" : been to than the the time when ..the.■■.loa'ii,:-was\:raise.d: The credit of New':Zealahd.:bas.?iisu.ally been good enoughj'itpy^tfablg;.-oiVii loans to be on-'l ifeiisoriablq terms, but the : metlibds .of ■tHe Government have.-.ibt'i' -.ini'prov'ejl;' |the' position. A cablegram' '.'p.ublishecl in last Saturday's' issue, -read- .as' follows:— '~-."''.

The 'Tinancial;;N.ew,s"''-.6tatp's that; ; .tttb New Zealand Govefnment s is. : :a'rra'ii'gihg : 'for,'the issue of itflO,Q,Opo;.'o^3V l .,pe,r; '.cent, bonds with a currency,'of tiv&years::at..9Q.' The "Standard" .-states';'.'thatrthb.:. :-;Nctv ; ' Zealand loan wilt'.to&l je4,sop;oi)p- and; will be ■underwritten: ■■'.per'-'c.qn.f;;-'

For some and the Minister; -for .Finance ,cle-' cline either this-. cabled report. • er; \yi.ll be much Burprisp^i'f'^ncifeppfistpr.il'?,out to be correct. Althpugii. called ; .a per cent, loan, ;sUeE'aVlpan: reported will -,be ; : ne'a'rer .%.§ ..per, ..ce.iii. ; loan. The mea'rjing -pf; tliis- bperatioti is that New Zealand''ioi-..ever}< '£i<JQj bond issued", is" ..supppse'd; .'ifa receive £99; "for.:, which .it has to pay bacg., ■ ,£IOO . ;at. Jthe. end of two year's,.: -AYS have,.. ■ttiofcefore, to pay spread over twb;y.ears 'jvlnch-ijj;f lie'r:; cent, per anniiniil,'^ f <!;;liayp alsb'.'tb pay an under,#rltingi.;qbmmiKi'on- pf £l per rent.,,:\vh|ch';'.sp\D>d- flyer two years, is another per annum. Then, "itrierei;, is .interest at 3J per , cent. The .'.r.'e.s.ul.t; '■ is : that,, apart from any fld.tiit'i'mi.:.expanses! other than under\yijitiiagY,:.the.- : a'mpjin£.of; which expense's the Has always had fp:..mu'ch\;hesxtitip.h' In submitting to'.P.'aHi'ame'nt .-aiid. the' taxpayers, this, loauipf ££$6;,ppo' %;ill : cost the coun'tVy- at; leajt: 4*. bey cent.But the flotation, ■expeh'ses-.ptherthari underwriting.icariript'.b'e i'gn''or.edy;-no.r-can the fact';':that\:jntci:,es.t. :ha's to 'be, paid on £4,00.0,000; !whei'ea.&.New,2e'a-7 land will only'; receive'-.. £3;920,CX)0; after writing T.he; .po.si'r tion, therefpr.cVif::the;'fapts..:6f : day's cablegram that New :Zeala'nd','>y;ill:.'receive', 'for-', each £100 £98. It ..-■cpurse' ,'n'o't,-..'-the-! fault of. v thV';' Mackenzie' Min-.-istry that." : "' '-'the,''' -.coubtry': 'wilt' have to pay . ; su'cn an,'extraxagaiat : - price for the ,money'.-. T,h6.. Miriistrjis merely ;paying .the; price- of its. Wardist origin:!.' There can- bo little, doubt that-iffthls;.'loan, Kiid: been raisr. cd some iripnths; aga#-as Sjr/.Joseph: Wakd has:.:latcly said necessary in the interests?b.'f; .'the. should haye-^een.-raised, for a Ijobgiii;period a nil- on .better .terms.. ..It'-, is not ; : th6coal strikes'..and- ■lrfbp.urtrpii}).l'e''s'. arid' other causes; opiating, in 'Oreab.Bp-. tain, ooup'lcdi-vfith; 'the. fjict 'that the loan is of- so shbr't. a currency:,, .and [that it has .been. ;fpjiiid.. necessary. ,tp: I pay an underwriting', 'commission' .of 1 per cent'.,.for a^dan'-ipr-Budi.«.*ihpijt, term, ha.vel iraised th'g: price ol this loan by something', like' *■ per. cent. per annum-■since the time' w.hcii. Sir. Joseph AYiiitj? ii'oi', says the- loan, ought to 'jiavtilie'eii have been;, iaishL but thiit {ii'CcorpV ing to his-sta'tciiieitt) lie: filj;ajiclc)!iod the negoßiitjobsi We have klibv'n ill.' a previous article, that Ills tillty' theft, if lie was satisfied—as he says he wrts —of the; .necessity . .foi: raising the loan, was ciSvM to borrow tlin iii.oficy required; or to, vfeigU at pife pi; summon-' -Pia-i:tisii iir-.njt;. at drier, arret leave thfv responsibility, to. bis siiiv CBBor? of loan Wfli aoccsßaxjv Ixom the fact

that the present stop-gap 81 misery in yaisvhg tlic Mfij it nwrsT, hi; assivnißiJilint ; tet SlifflStry cansiclors if, necessary to bftrYUw Hi 6 rnimiVy. ill, Lhrfre-foi-K tile cabled stivteiiit'nt is eorrirct, SiIt'JOSEPH Wa'jid, by Ihfi !k; purßiiDcf oil Wis evo <if kiiviiig oils*., Would scoin. tw h.av.e cost the, tlixpixyiu! . sdmcthlfifc. like £4a,W-4Mli i« -l" saiv,, i per eent. per anriuiji on frl'-O'OO'jOOO for two yetlTSi