THE COUNTRY'S FINANCES.

Dominion, Volume 6, Issue 1769, 6 June 1913, Page 4

THE COUNTRY'S FINANCES.

We remarked a day or two ago on the fact that the Minister for Finance appeared to have returned from his tour abroad in a very cheerful frame of mind concerning the country's finances, and especially regarding the credit of the Dominion in the financial centre of the world. Probably one of the reasons accounting for Mr. Allen's cheerfulness is the success which attended his supplementary loan efforts, about which we have heard very little until his return to Wellington yesterday. The main loan of £3,000,000, it will be recalled, was floated at 98, with an interest charge of 4 per cent, for the term of either 30 or 50 years; the actual charge to the country _ being £-1 ss. Gd. per cent., as against £5 2s. 9d. per cent, for the £4,500,000 loan raised by the Mackenzie Government in 1912, and £4 12s. Bjd. per cent, for the £5,000,000 loan raised by SIR JOSEPH Ward the year previous. The Massey Government was faced with _ a difficult situation in connection with its first loan undertaking. Money was dear, the market being affected by the war in the Balkans and the possibilities of further comphca- ! Hons, but the loan was urgently needed, and, in the circumstances, Mr. Allen did remarkably well in securing it on the terms stated. But apparently the success of that flotation was exceeded by a subsequent smaller loan for £350,000. A quarter of a ir.illion of this amount was secured at 99i, as against 98, while the remaining hundred thousand pounds was obtained at a premium, the actual yield per cent, to the Pomirikm being 100 L This is indeed satisfactory, and affords strong evidence to support Mr. Allen's claims regarding the Dominion's credit in London." The Prime Minister of Victoria, Mr. Watt, who is now in London to float a £3,000,000 loan for his State, appears to have been less fortunate than the New Zealand Minister. He also has caught the market at a bad time, and it will be interesting to note how tho Victorian loan, which apparently. is issued on practically the

same terms as the New Zealand flotation, except as to tho period of the issue, fares. The Massey Government found itself in a somewhat awkward position financially when it assumed office, owing to the methods of the Continuous Ministry, and it has emerged therefrom with credit to itself and with .advantage to the Dominion. Its critics during the coming session of Parliament will have to move warily indeed on the subject of finance. We rather suspect that the Minister for Finance will have some unpleasant pills for them to swallow ere Parliament disperses again.