BORROWING PROSPECTS

Dominion, Volume 8, Issue 2435, 14 April 1915, Page 6

BORROWING PROSPECTS

STATEMENT BY HON. J. ALLEN.

A good summary of the position of the New Zealand Treasury with relation to borrowing was giver, to a reporter by the Hon. J. Allen yesterday. "As regards finance which depends on borrowed money," he said, "we are in an exceptionally strong position, and there is no real necessity for us to go 011 the London money market. So far as war loans are concerned, I have already intimated to the country that we have no difficulty in that direction, inasmuch as our loans are pooled with those of the Mother Country. I had hoped we should have been able to arrange for loans for continuation of publio works in progress on similar terms to the war loan, but those negotiations were not successful, although it was agreed that New Zealand could! go upon the London market for a loan for that purpose. As to loans for new works, before we can go on the London market we have to run the gauntlet of inquiry iby a special committee which' has been set up in England to decide such cases. "As regards public works in progross," the Minister continued, "we have at our disposal in New Zealand sufficient funds to enable us to go on satisfactorily for some time, and presumably (and I have no reason to doubt the presumption) that the Post Office Savings Bank deposits continue to show an excesß over withdrawals, I do not anticipate any need to go on the London market for some months.

"As a matter of fact, out of the authorities given to us to borrow for public works, we have already raised more than half, partly in England and partly in New Zealand, so that we have authority left for only about £1,350,000 for public works. I do not at present see any difficulty in the way of raising that in New Zealand. "It may be that the terras on which we could secure money in London would be sufficient justification for us to go there for money for public works in progress, but so far there has been no need to do so. As to new works, for those which are essential we are able to procure the money in New Zealpad."