The Feilding Star. TUESDAY, MAY 3, 1892.

Feilding Star, Volume XIII, Issue 131, 3 May 1892, Page 2

The Feilding Star. TUESDAY, MAY 3, 1892.

TnE alleged reason for more borrowing given by the Government is that the money to be thus raised is required for the construction of roads and bridges to assist settlement on Crown Lands. The real reason is that the money is wanted for political purposes. A Colonial Treasurer with a full money chest commands a willing army of followers. We were under the impression that our present very Liberal Government when they took office wished the colony to believe that one of the strongest planks on their platform was " no more borrowing. " They quoted many figures to show how wicked it was to eend the money (the life blood of the people i c— the self-styled " Liberals ") out of the country to pay interest. In some of their higher flights of liberalism they even hinted at repudiation. However, all enthusiasts are giveu to that sort of rodomontade and we do not expect our alleged liberals to be exceptions to the rule. But they might try to be logical in their calmer moments. It is notorious tbat if capital is not actually leaving tbe country, no new capital is being imported. If the Guyerument were in different as to whether this is or is not true, they would not take so much trouble to make denials, and affirmations. One day we are told by a Minister of the Crown that the money is going, but aa we can do without it —will, let it go. Another Minister, with equal emphasis says the money is not leaving the country, aud his argument is backed by the Government organ in Wellington, which advanced the singular opinion that an increase of fixed deposits in the banks was a good sign. It i 6 the very reverse, because it iudicates that money is being withdrawn from circulation, in place of flowing into its natural channels. Money owners are afraid to lend it at the higher rates, preferring the better security of the banks at the lower rates of interest. When the present Ministry came into office the credit of the colony, which had risen high under their immediate predecessors, went down with a run. This was a severe blow to their self esteem. But as during the last year we have had a term of great prosperity, and comparison with the Australian Colonies has shown the inimence superiority of New Zeuland. ("We are not as other men are") faith in the minds of financiers in England was returning. One great authority said that abstention from borrowing would restore the confidence of bondholders, and encourage the exportation of private capital to New Zealand. That his opinion was a just one, and founded on good grounds, goes without saying, yet in the face of that our Liberal Government propose to introduce a new scheme of borrowing. Verily their forte is not finance. We know, especially in this part of the colony, how well money spent under the Loans to Local Bodes Act 1886, has assisted the progress of settlement, but one main factor in the attainment of this desirable end was that the money was expended by the settlers themselves where they knew roads and bridges were moat wanted, and they are now paying back principal and interest out of their own earnings. If loans to the Government were expended with the same wisdom and discretion as loans to Local Bodies have been, we would not object. But experience in the past has taught us that Governments are too apt to reward supporters and conciliate opponents, by political railways or other similar rewards or bribes. A follower is rewarded, an opponent is bribed, but it comes to the same thing in the end. The introduction of a borrowing policy by the Government is a double mistake. It will damage the credit of the colony with English bondholders, and weakeu the faith of their own supporters iv the colony.