The Feilding Star. THURSDAY, FEB. 19, 1891. Our Moneys

Feilding Star, Volume XII, Issue 102, 19 February 1891, Page 2

The Feilding Star. THURSDAY, FEB. 19, 1891. Our Moneys

THE>Government have stated that it is intended to appropriate the crust funds of the /Government Life lusurrance and Post Office Savings Bank for investment in land purchases from the Natives, iustead of going on the London market to borrow money. Of course if it is absolutely heoessary that the public indebtedness of the colony should be increased for such a purpose, it is as just as well that the money should be raised in the colony. But even supposing it was raised here the vacuum thus created would only be filled by English capital, which would be attracted by the consequent" higher rate of interest, so that there would be merely a distinction withbtit a difference. As the interest would still leave the colony the main point to be considered, however, is whether the' policy-holders of the Government Insurance Department, and the depositors in the Post Office Savings Bank, will care to have their money manipulated by interested politicians, or squandered without either control or responsibility. We do not say that this will happen, but still less unlikely things have happened, and it is just as well to be on the safe side. The popularity and success of these two institutions rest entirely on the belief of the policy-holders and depositors in the inviolability of the money entrusted to the Government through those channels. If once that belief or faith is injurod or destroyed by the Ministry using their influence over the Boards who, nominally, control the investment of the idle or surplus trust funds, to use them for any political purposes whatever, it is not too much to expect that such action may lead to their ruin, Eiyal Insurance companies would certainly reap the benefit by attracting business from the' Government office, aud people would sooner spend their money on the totalisator than put it in the Post Office Savings Bank. This may be an extreme view, but it is one which might easily be realised. Of course it may be argued that there is the State guarantee, but people on the other hand will aßk; " Who is going to guarantee the State?" — a very nat ural enquiry under the circumstances.