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Hokitika Guardian, 26 August 1925, Page 2

In his address to the shareholders of the National Hank, at the annual meeting of which was held in London early in July, the chairman (the Hon. AY. I*. Hooves) spoke at some length on the Dominion's public finance and taxation. “One of the results of the reluctance of capitalists to lend on mortgage,” lie said, “has been tlio insatiable demands made on the Oovcrmnent to do the lending itself by way of advances to farmers and house-builders. Owing to this and other causes, the tloveriimeiit of New Zealand still continues to be a heavy borrower. Some months ago it raised another large loan - C7.000.U00- in the London marUet. It happened to app<*ar at an uuiavmiraMi? moment, and. as it was issued at IJ per cent, at a price of OIL the public left much the greater part of it in the hands of the underwriters. 1 do not think that this indicates any lack of confidence in New Zealand as a security. Quite different causes were probnblv at work. I do tliink, liov.etoi that it marked a somewhat changed feeling here towards large overseas loans. It looks as though the public was not quite as anxious to send money

overseas as it was a year or two ago. If tiiis should continue New Zealand, in common with other countries, will have to take note of it. In previous spooi-hes I have more than once told you plainly that I think the New Zealand Government is borrowing 100 heavily. It is not pleasant to go oil giving warnings which are neither agreeable nor popular. Nothing hut a sense of duty causes me to do so. For that reason, and no other. I repeat the warning this year. A cottntrv as prosperous as New Zealand can well afford to reduce the annual dose of stimulant from outside. The more -lie docs so. the more readily will she be able to borrow when depression again overtakes her and a certain amount of stimulant may be judicious.”