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Dominion, Volume 6, Issue 1711, 31 March 1913, Page 4

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« —— FRASER ON THE OUTLOOK. HIGH INTEREST RATES IN THI2 FUTURE. "LIBERALISM'S "LEGACY. (By rolcßraph—Press Association.) Auckland, March 30 The Acting-Minister for Fiiianco (th«T Hon. W. Fraser), who returned to Auck« land from tho north on Saturday night,' informed' a "Herald" representative that ho had been much impressed by the fact that a number of nations intended shortly to borrow large sums of money from tho London money market. "Money is going to be denr for a Ion.? time," said Mr. Fraser, "and I doubt whether we will ever be able to borrow at those low rates ol' interest which have ruled in the past." Mr. Fraser went on to say that tho present (financial position of New Zealand was good. Revenue was coming in satisfactorily and prices for all produce were high.. ■ , , "The great difficulty of the present Government," Mr. Fraser said, "is tlip'acquirmg of sufficient loan money with which to carry out necessary works, such as tho making of back-blocks ronds, bridges, and railways. Previous to our taking ofi'ico there had been given in grants .£675,000, and when wo took charge wo found only .£17,000 in the Treasury to carry out the works. What is the position? The only courso to he adopted is to make granta' lor only tho most Urgent works until wo can see our way clear to borrowing sufficient money to carry out others. 1 "The position would have besn a great deal better," continued tho Minister, "if current rates of interest were not so high. The present Administration has not been able to borrow from the l'ost Office Savings Bank moneys within .£1,000,000 of what was borrowed previously. Naturally, people would not leave their money in, tho Savings Bank at 3 or 3J per cent when they could get from G to 8 per cent on mortgages and- elsewhere," and the Gov-, eminent has been placed in the position of having to borrow from A to pay off B."

Mr. Eraser went on: "Money was borrowed previous to our taking office on, short- debentures, and next year the 4 j million loa|i falls due. It may or may v not bo renewed. If it. is not,'the Government is faced with tho task of having' to float. .1 largo loan and the main objcct; will have to bo to make it ns lone-dated as possible. I hope, however," concluded, the Minister, "that with the termination; of the Balkan war matters will improve, although as far as wo enn fob at prow sent there is going to bo an abnormal do* mand on Homo money-lenders."