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Evening Star, Issue 3289, 4 September 1873, Page 2

The Guardian , this morning, offers a few remarks on what it terms the Provincial Borrowing Bill, evidently under a mistaken idea of the subject. It is treated as if it was to authorise “ Provincial Borrowing,” and the writer tells us that if the Provinces have “ specific security,” they need have no difficulty in obtaining “ temporary accommodation from the Banks,” Had the Guardian understood the nature of the works to be done on “specific security,” it would have known that it is not “ temporary accommodation” that would be needed, but an advance of money for a certain period—say for a certain number of years—and that it is contrary to banking practice to lock up capital in such advances. It should know too that no Province is authorised, as a Province, to obtain advances from its bankers, exceeding a certain amount of its annual revenue. The Provincial Loans Bill does not interfere with that Act, but merely authorises the Provinces to obtain money for certain works on the security of the works themselves, or on such other available security as may be determined upon. By this means the ordinary revenue of the Province will be left available for its usual needs and other necessary work executed that would remain undone. It is only giving to capitalists increased facilities for profitable investment of money on such securities as they themselves will be perfectly satisfied with. It is applying the principle to New Zealand that has succeeded so well at Home, and by which docks have been constructed, canals made, rivers deepened, and communication opened up. We should recommend to our contemporary a study of the various means by which England’s commercial greatness has been achieved, before it condemns one of the simplest and best means of carrying out necessary public works.