First N. Z. Loan

Horowhenua Chronicle, 5 September 1916, Page 3

First N. Z. Loan

THE HARD-UP XEW Z.-ALAX:> GOV'J-RXMEiXT. (.By Telegraph—Special to Evening Post.) People have been so accustomed; to Xew Zealand raiding loans outside the iDominicn that it. in proba-blc lew are aware that the present war loan is not the first that- was raised in the local market. The Star points out- that okl newspapers furnish some interesting facts cf what happened in tl:e. early days. In ISto the Government was ■compelled to i-a-is2 money by if.suing debentures which eia.rried interest at the rate of 8 per cent. • At-a: time like the present wh i-11 people are subscribing freely to a war lean for which they -will receive debentures and: certificates, it 'is of interest to note that in 181 o debentures were forged, which lcsulted in a less to the -'Government 1 of £250. One man was'*o.l-it glit and sentenced to teji yea is' penal .-crvitude for having forged a debenture. ror 20s. In those days people's ide.is were modiest in the matter of loans. The Government, had issued debentures for £<JOOO._ The Government had to ' 'Pace >a financial -panic shortly .afterwards owing' to the fact 'tiiat the Home authorities notified that it had- no authority to raise £{>000 by the issue of debentures. The seriousness of the financial position may he estimated from the'fact that the colony was "staiggor.ing nndlcr the enormous indebtedness of £14,000. and that the cash in the Tieasnry aniountedi to £19 103d. It was, however, true that the Government had n< credit standing in the hank at thafc time of £3 1« Tkl. Fortunately .South .Australia had a surplus of .CGOOO thai year, which was lent to the iXbw'Zealand: Government to enable it to tide oven* the crisis.