STATE ISSUE OF NOTES.

Horowhenua Chronicle, 7 January 1911, Page 2

STATE ISSUE OF NOTES.

To the Editor. Sir,—About eighteen months ago I was engaged in a controversy in your columns with Mr France over a State issue of notes. Tho Commonwealth Government has since passed a mea-urc authorising a State issue; the following paragraph ffom the New Zoalend Times of tho oth inst.. explains ils.df: -• "COMMOXWKAI/I'IT VOTE TSSUF. ■''Wilien tho Prime Minister, .Mr Fisher, arrives a I ih<> Federal Treasury afler his" trip to South Africa bis hoarl will ro.joi-o when lie hears how the Commonwealth notes ibavo gone off (remarks a. Sydney contemporarv). So far the banks have absorbed CVOO.OOO worth, for which they havo paid into tike Treasury the face value in sovereigns. Of this amount £1,100,000 is being held in reserve to pay any demands made for gold, while the balance is available for-'the Treasurer to operate on. as he thinks fit. It is understood that a big slice of the money will be used at the end of the month to settle with tho States." # If Sir Joseph Ward had introduced a, .similar measure a £2,000,000 loan wo old have ben sufficient instead of G5.0f10.000. Tho other £3,000,000 could have been raised on the .note issue. Thus we would have been paying interest only on two millions instead of five millions. Some peopie earn a reputation for being financiers in a cheap way. Anyone holding a. gpjid security with sufficient margin can borrow" money and pay interest.—Yours oi'c. W. MURDOCH.