COUNTRY'S CREDIT.

Dominion, Volume 6, Issue 1768, 5 June 1913, Page 5

COUNTRY'S CREDIT.

FINANCE & LOAN. HON. J. ALLEN'S RETURN HIS WORK IN LONDON. THE HISTORY OP THE LOAN. (By Telegraph.—Pres» Association.) Auckland, Juno 4. A. largo gathering assembled in >tho Town Hall to-night at tho welcomo tendered to tho Hon. J. Allen on his return from England. Tho function was held under the auspices of the Auckland Women's Political Reform League, and was a great success. Mr. J. P. Campbell (president of tho Reform Club) occupied Hie chair, and was supported by tho Prime Minister. Other members of tho Ministry present wore: Tho lions. W. H. lieiries, It,- Hcaton Rhodes, and Dr. J'oinare, and amongst others were: Messrs. ,1. 11. liradney, F. W. Lang, F. Mander, J, S. Dickson, A. Harris, J. A. Young, R. V. Bollard, and II: M. Campbell, M.l'-s. MR, ALLEN'S SPEECH. LOAN AND FLEET POLICY. Mr. Allen, who was very heartily ro» ceived, expressed hearty thanks for tho welcome extended to him. Referring to the Public Service Commission, Mr. Allen said that, by that commission, tho Rofonn party had taken out of its hands the opportunity to reward its supporters. He asked his hearers to support tho party in its endeavour to clear the atmosphero of political support and political patronage. Possibly some peoplo who had been expecting rewards from their friends who had come into oflice might bo disappointed, but ho asked honest men and women to support those who had deliberately given up the opportunity to give such rewards. Mr. Allen ilicn went on to say that hia chief business was to tell tho audience something of what he had gono to England to do. llis report would bo in tho Prime Minister's hands that night. New Zealand stood higher to-day, lie said, in the estimation of England and Canada iimn ever it had done before, and this, he claimed, was the result of the success of the Reform party, and of opinion in England and Canada as to what it would do ill the future. The change of Government was tho reason why Now. Zealand had such a high standard now in London. It cost n great deal to float an inscribed stock loan—ollo per cent, to the underwriter, i per cent, to the Bank of England, J per cent, to tho broker for finding underwriters, and 12s. 6d. per, ennt. f\s stamp duty to tho British Goveminent.- All these costs were repeated every time that a loan was .floated. Two loan's, which had lately ken Taisod by the lato Government, cost all those charges, and next year they would cost every penny of them again. The loan which lie had himself raised had been obtained ut a most unfavourable time, and he claimed no credit for having raised it, except that he had been able to convince those at Home that New Zealand was sound at heart, and was not going to bo extravagant, and would not 1)0 so in future as it. had been in the past. Tho cost of this loan was ,C4ss. Od. per cent., and 110 such loan had been floated in respect to New Zealand for many years. It had been stated that tho Dominion would have to pay .21 ss. Cd. for 50 years. This,. however, was not correct,_ as the Government luid the option of paying off tho whole amount at tho expiration of 30 years. It. was to tho country's advantage to do-so.

It liart been charged against. the Government that it had neglected to rnako provision.for the legitimate wants of the Dominion. In reply to this, all he could say was that the Government had made provision for meeting responsibilities which had bc-en left them by their predecessors. Having absolved themselves from this responsibility, they were in a hJlter position than before. During his visit an additional 1 .£350,000 had been raised, and on belter ' terms than the £3,000,000 loan had Iwi'n [ obtained. Til a few 'weeks after the ,i'3,1)00,000 loan had been issued nearly eu-ry penny of the amount had been 1 taken up by genuine solid investors. •He L did not believe that such a thing had ■ ever occurred before in connect ion with 1 any Aw Zealand Joan. The additional 1 difount of the ,£350,000 loan money had " not vet .been allocs led, and ho was going • lv,' caisult hij colleagues regarding'that. ' H? hoped that it ivOuld noi bo the last ' of the new money. _ 1 to the question of tho Do- ' minion's naval policy, Mr. Allen said * 1 that the Prime Minister had not yet hi.d time to peruse the proposals brought ■ lnck by tlio speaker, and neither could ho explain just yet what those proposal ■ were. "I do say this much, however," he continued; "I believe that I know ' the country well enough: lo have tho asr.urai.co that it is patriotic, and believes in the Empire. The people realise, though, that New Zealand cannot stand alono, that it would not bo wiso to attempt to do so, and that it is sound policy for each unit of the Umpire to do its pari in keeping open sea pathways upon whifih, to n great extent, the safety of Ihe Empire depends. Definite/ proposals concerning New Zealand's naval polity will be put before tho country by tlio Prime Minister before long." In conclusion, Mr. Allen explained his proposals in regard to an expeditionary force, and resumed his scat amidst loud applause.' THE PREMIER. GENUINE SURPLUS AND OTHER MATTEKS. Tlio Prime Minister thanked the audience for.tho honour done Mr. Allen, tlio' Keform parly, the Government, and himself. After referring to (lie sticcesf achieved by Mr. Allen in respect to Hit raising of loans, Mr. Massey said that, when he had gone Home, tho country could take no risks. Tho finances of tho Dominion had got into a much more unsatisfactory state than any member imagined, and Mr, Allen (said the Primo Minister) hnd been unfortunate in having to gO Homo when tho mbney market was .very bad, and yet had managed to raise the'loan at a lower rale of interest than the country had been able to do during tlio last three years. This fact spoke not oulv for the financial ability of the Minister, but for tho esteem in which the crcdit of the country was hold in London. Ho then referred to the fact that the Reform Government had brought down n genuine surplus of >£700,000, but added that not a single sixpence of this would be expended without the authority of Parliament. When this was secured sums would bo available for advances to settlors and workers, for acquiring land for settlement, and for the development of Hit country generally. Mr. Massey then referred to various planks.of the Government's platform on the lines of previous speeches. In regard io the Wailii strike, the Government hnd been attacked for the policy that it had followed on that occasion, but, if there was a similar strike, the Government would again do (ho same thing. (Loud applause.) Speeches were also made by Messrs, • Herries and Pomare,