The Feilding Star. Oroua & Kiwitea Counties Gazette. Published Daily. TUESDAY, APRIL 30, 1895. THE NEW LOAN.

Feilding Star, Volume XVI, Issue 254, 30 April 1895, Page 2

The Feilding Star. Oroua & Kiwitea Counties Gazette. Published Daily. TUESDAY, APRIL 30, 1895. THE NEW LOAN.

It will need a good deal of explanation and argument to convince those people in New Zealand who have any' knowledge of finance that tbe Colonial Treasurer has ac'ed wisely ami in the bust interests of the colony by floating the loan of a million and , a halt at three per cent with a minimum of ninety per cent. At first i glance the msujrin appears too wide, and sujr-ests that the urgency of the case bos made such a course an absoluco necessity. Ie is possible that tbe tecders when opened may

disclose the fact than the confidence of financiers in the strength of the resources of the colony is so great that few if any of them touch the minimum, and the anticipated loss of £lo0 y OOO to the? taxpayers way not reach that amount. In our cablegrams from Sydney it will be seen that The Daily Telegraph considers floating a loan on the lines quoted is setting an example which is sure to be followed, as it is in the right direction, but the Herald can hardly see what is to be gained by the change from 3|- per cent as the money will probably be borrowed at the equivalent of that price, and iears that the objectionable use of a nominal rate of' 3 per cent will be made by poli ticians in order to make loans to farmers appear more profitable. Although we approve of the object oi the loan which is to carry out the provisions oil lie Advances to Settlers Act, yet we hold that the colony is likely "to pay too dear for its whistle" if the purchase is not made with a better regard for economy. If the credit of the colony is .«o good in the London money market as is claimed by the Ministry, a 3i per cent loan could have been floated at par. Probably Mr Ward did not find the picture quite so pleasing when he arrived in England and hud to act accordingly.