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Hokitika Guardian, 30 June 1925, Page 2

It is not disconcerting in know that circumstances will prevent New Zealand going on the London money market lor a time'. 'l’lie visits to that quarter have hoen far too easy and Ireijiient. The comparative failure of the recent .seven million loan, that is so lar as public-, appreciation of it is concerned, will not tempi an early effort in the same quarter. The financial journals at Home are advising caution in the matters of lending, and the expressed opinions mean an unfavourable situation. Regarding the matter a commercial journal says: - “This week’s New Zealand Government loan for .£7,<X)0.0(10 in •!}•, per tent, stock, redeemable in 15)1/5, which was offered at 5)4 J, is expected to be followed by other new loans for similar borrowers. Apart from the amount of debt which will mature in the course of the next few months, it is known that some of the Colonies need fresh money, and in this connection a feature of recent years lias been that, when preparations are made for the retirement of obligations, the borrower usually takes the opportunity of asking for a million or two more than is falling due. Tt would he a pity if Colonial borrowing assumed important dimensions at the present juncture, for presumably that portion of the loans which was not spent in this country in the purchase ot material. machinery etc., would he exported abroad in the form ol gold. Conceivably. therefore, it might he necessary to raise the Bank Bate in order to protect our reserves against a drain of gold for the Colonies. The possibility emphasises the need for some agreement between the Mother Country and the oversea Dominions in these matters. such as has lieen urged by Mr ,T. F. Darling, of the Midland Bank, more than once. ’lbis expert, in the May number of the ‘'National Review’’ contends that Britain should not adopt the gold standard until the position has Iteen greatly strengthened by means of some such agreemtent by which the British Empire would 1 scour one great economic unit strong enough to meet the power given to the United States by the accumulation in America of half the world's gold.” However, now that the Horne money market is closed for the time being, it is to lx? hoped thoughts of frugality will ho occupying the minds of those on the Treasury benches, and a strict policy of public economy will he p" in the forefront as regards public administration and expenditure.