THE BORROWING POWERS OF NEW ZEALAND.

Globe, Volume XXI, Issue 1774, 27 October 1879, Page 3

THE BORROWING POWERS OF NEW ZEALAND.

The “Times ” prints in its city article the subjoined complaint about tho borrowing propensities of most of the colonies, and adds tho remark that this complaint is only too well founded : “August 30th, 1879. “ Sir, —It is discouraging to holders of Colonial Bonds to see the apparently reckless fashion in which the Australian and New Zealand Governments apply for and obtain fresh borrowing powers as soon as they have issued a loan on this side exhausting their existing powers. It is only three or four months since New South Wales raised a large loan here (some £3,000,000, I think, though I have not tho figures at hand), and in a recent telegram it was stated that yet another £7,000,000 had been authorised; while New Zealand, already too deeply in debt, follows suit with £5,000,000 more; and South Australia, I understand, will again bo in the market towards the close of the year. The result in the Now South Wales Pour per Cents., which in May last

were worth 1011, are now under 97, or, allowing for the accrued interest in each case, a fall of over per cent. I am aware that some of the rise was due to the glowing accounts of New South Wales finance circulating prior to the issue of the last loan. But we have since heard that the revenue for the year is £50,000 under the estimates, and for many reasons it seems to me that present holders and intending future subscribers have some right to know to what extent this system is to be carried, or otherwise we are likely to see history repeating itself, in a series of disasters similar to those caused by the superabundance of foreign loans a few years since. “ I am, sir, your obedient servant, Peudentia.”