THE COUNTRY'S FINANCES

Dominion, Volume 8, Issue 2290, 26 October 1914, Page 7

THE COUNTRY'S FINANCES

STATEMENT BY HON. JAS. ALLEN. (By Telegraph.—Er«s Association.) . Auckland, October 25. Complete confidence in the condition of the Dominion's public finances was expressed by the of Finance (tne Hon. Jas. Allen) on Saturday. "Considering the times we are in, the I financial position of New Zealand is especially good," Mr. Allen stated. "There can be no question about it, and I have no hesitation is saying tha,t so far as -the finances of the country are' concerned there can be no comparison between the conditions to-day and VHe conditions we found when the Government took office.' The position is insuperably better, especially the condition of, the State Advances Funds, and the Public Works Fund. The Loan Bill will be introduced in the House of Representatives on Tuesday and I will then make an important statement regarding financial matters. Recent criticisms of the Government's borrowing policy will be answered by a complete review of its loan' operations in comparison with the'transactions of its predecessors." A statement of the present condition of tlio public funds will be given, and the Minister will also discuss the prospects of the future. Mr. Allen ex-' plained that "the expenditure for military purposes is being met by funds raised through the Bank of England on Treasury bills on very favourable terms. , Sufficient funds remain from tho last' loan to continue public works, and since the latter are of essential importance the reduction in the advances to local authorities and others has been made so that the, balances in these funds may be .temporarily used for public works. ' , The position in regard to the unconverted portion of the Ward four million loan, amounting to £3,200,000, which matures in December, is not satisfactory as the attitude adopted by the subscribers of ■ the loan makes it necessary to raise a new loan to ropay the money. The holders of the debentures refuse to renew them, to convert them into stock, or even to sell them, so that the loan must be repaid. Mr. Allen expects that it will bo necessary to obtain tho money to repay the loan by issuing Treasury bills. The Mother Country is going to raise a loan next year to' pay off the Treasury bills which she is now issuing at the rate of £15,000,000 a month. Mr. Allen stated that we have .•every reason to believe that the Imperial authorities will make provision in that loan for thp requirements of New Zealand, securing for us a sufficient amount to enable us to pay off our Treasury bills, in addition to the loan for which the Government is seeking authorisation. That loan will probably ba for a .long term, ■ but m any case wo can be quite certain that it will be raised by tho Mother Country on moro favourable terms than anyone else will be able to securo.