WAR FINANCES

Dominion, Volume 8, Issue 2497, 25 June 1915, Page 8

WAR FINANCES

NEW ZEAL AM) AND THE LOA27. Inquiry was made of the Minister of Finance yesterday as to whether it would be necessary for New Zealand to take any action similar to that contemplated by the Australian Prima Minister—that of raising a local war loan. "My only remark about the English war loan," he said, "is that. 4} • per cent, seems to me a fairly high price to pay as interest for a loan, and this floes make some difference to us in New Zealand with respect to our war loan. Hitherto we have been getting our money at a good deal less than 4 per cent. If we are now required to pay' 4J per cent., plus exchange, then the matter becomes one that deserves serious consideration. "New Zealand may thank its stars that its finances were in the position that they were when this war broko out. I don't think any other oountry. was as favourably situated as New Zealand in this Tespect. I don't boast about it because I happen to be Minister of Finance, but it is a fact. We were in an extraordinarily strong position. This does not mean that we can. afford to be extravagant. We have to be very careful with the money wo have available. We can't afford to scatter it. People must not think that because I say finance is strong we can make advances to local authorities and that sort of tiling. That we can't do without shattering our finances to pieces."