MINISTER FOR FINANCE

Dominion, Volume 6, Issue 1578, 23 October 1912, Page 7

MINISTER FOR FINANCE

TO VISIT LONDON.

LOANS, DEFENCE & EDUCATION*

IMPORTANT MISSION.

At tho request of the Government, th« Hon. J;is. Allen will pay a visit to London nt tlio beginning of th« year in connection with Dominion finance. Though tho country is itself very prosperous and prices for cur main products m'b satisfactory, tho question of our public limine* is such as to call for some n( tent ion with a view to putting it upon a llioroughlj sound basis. While .Mr. Allen is in Lou. don he will have to deal not only with the now loan of .£1,750,000 for public worlis, but also with the renewal of loam falling due, and the raising of othei loans for State guaranteed advances, State coal mines, etc. In addition to tho ■£1,750,000 for works, there is a lralanco of ,£74,000 of last year's public works loau still unraised, and X'loo,ooo is wanted for State coal mines. There will nlsobe on indefinite amount in connection with renewals of loans falling due, and an amount for laud for settlements advances for settlor* and workers.

Mr. Allen will also avail himself of tb« opportunity afforded by his visit to learn something of the probable financial position next year, who-.i o large amount ol loan money (including tho JM,500,000 borrowed by the Mackenzie Government early this year) is falling due. The fol lowing table shows tho loans falling due within the next three years, and where the money was borrowed:—

lcar. London, tralia. N.Z. Total. 1912-13 30,300 135,000 3,113,300 3,295,(i(iG 1913-H 1,260,400 100,700 330,000 1,777,700 1914-15 8,018,200 452,100 1,330,5(15 9,830,805

Totals 0,358,900 773,800 1,771,531 14,907,231 of tho eight millions odd falling due in London in 1914-15, .£3,142,000 is of tho .65,000,000 loan not yet converted, but subject to further conversion. Of tho New Zealand amounts the larger proportion is moneys borrowed from the Post Oihce, and will nn doubt be renewed. It is not certain that other New Zealand amounts or Australian amounts will bo renewed, and it is ijuite likelv New Zealand will have to raise money in Loudon to pay oH (hose. It is also Mr. Allen's intention to see whether New Zealand can arrange something with n view of getting rid of the short-dated debenture system. This matter was referred to in tho Budget, in Which tho Minister for Finance stated that the consolidation of our short-dated debentures had given him grave concern. Ho lidded Hint during (ho next seven years, a very large portion of our Public Debt would require cither to be renewed or be paid olf by fresh loans, and that arrangements would need to be made accordingly. The lludgot went on to sav: "The Government docs not approve of tlic issue of short-dated, debentures for this country's loans, and' is of opinion that n. comprehensive scheme for converting tliotu into sjock is very necessary. At present there are three kinds of stock— 4 per cent, maturing in 1929, 3J per cent, maturing in 1940, 3 per cent, maturing in 1915. The Government'proposes'to provide for the short-dated debentures soon to become duo by creating-a further issue of stock at 33 per cent., maturing in not. less than twenty years' lime." Cabinet has come to the conclusion that it is very necessary the country should not have (lie- short-dated debenture system 'banging over its head any longer than is nbsulutely necessary, and it is desirous of making provision for longer loans. Tho Government wish to get rid of the hand-to-mouth system, and to put our public finance upon a more secure basis. IMPERIAL DEFENCE. When Mr. Allen is in England he hopes also to learn something regarding the ideas of the Committee of Imperial Defence, especially in connection with New Zealand and Pacific trade routes. This, of course, relates to the question of naval defence. In so far as land defence is concerned our ideas have now fully matured. Our policy in regard to naval defenco is still being considered by tho Government. Mr. Allen is abo anxious to hear what iho Defence Committee has to say about our harbour defences in r<v gard to fixed armaments-, and more especially in regard to torpedoes ami submarines as a means of defence. . It is quite obvious that any fleet operating hero must have Hie means at hand of repairing in a safe harbour, and therefore at least one of our harbours must be made a naval base. EDUCATION. Mr. Allen, as everyone knows, has for many.years taken a very keen interest in education, and in addition to his control of finance and defence he is also in oharge of this important Department. If tinio permits ho will during his visit devote somo study to educational system? in the Old World. He is very anxious tc see something of the , technical school work in Great Britain, France, and Germany. If time permits he will also endeavour to get nn insight at first hand into the Swedish system of physical training. Tho systom is being taken up in two or three plaoos in England, ami New Zealand is reorganising iu this dircclion in tho primary schools, in which the whole system is to be changed. Altogether it would seem as if New Zealand is likely to benefit to a very considerable degree through the determination of tin Cabinet to ask Mr. Allen to pay a visit to the Old World at the pros.ent juncture.