WELLINGTON NEWS

Hokitika Guardian, 8 October 1925, Page 4

WELLINGTON NEWS

loan for advances

(Special to “Uuardir.n”.)

WELLINGTON, October o. In Mrcurdaiiei; with 111 <_■ statement .iile 11v tke .Minister of Finance in ike ijuse the* Government is nliout to li I'er lor sale over tlie counter ot per ti ■at debentures at par with a currency “ f about ten years and the amount re- ‘ ilil-ed is L'o.lllKl.OdO. or mure. The lonev is required for the Advances f( liiee. and the question is whether the w overnment will net the amount it te- e uires or any consitlerahle portion, e part from this the Government oh- t dined authority during the dying o;u sof t!i(* session io borrow L‘l,ooo.- j U), mainly for public* works but this s iihiuui is obviously reserved tor issue ] i London about. May next if the mar- t t-t. is favourable. Iho Government- I ,-;nild. if it could, raise the money re- 1 Hired tor the Advances (Hike in Lon- ' on, l,ut there i.s an imoliieial though a effective embargo on overseas loans, ( ml although money is cheap in Lon- | 1.111 now. the hank rate having been t educed lu I per cent., there is no in- l nation to the Dominions to come into \ he market. The cheapening oi money | ii London is priimiriiy designed to help ( he hritish trade, and it is to be hoped , hat it will achieve that purpose. Will ,ac Government, receive adequate siip>ort for its local issue? Last year 5.', ier ccnl debentures lor an indefinite turnout were olfered with a currency ii' six years, maturing on July 1, 10;10. •stock was available in amounts ol not less than Lioo and exceeding that ['.mount in amounts which are a multiple of Lin, and hearer debentures in r. mounts ol Lott, Lint), Lootl and LltJdt). : iris issue did not al tract any attenlimi u>r it was not iriiiptinv; enough for the oidinaiv investor. Even lie small investor making use ol the Rost Ofliec Savings Ikink passed til" securliv. The latter of ionise during the war, when the lever of patriotism was burning subscribed lor the o per cent quite readily, hut these small investors |.,st heavily when the securities were ~n a com mereial basis. Ihe u per cent k -uvings Iktnk bonds are quoted on tlie exchanges at about LOS 10s. The d; per cent Soldier Settlement bonds are quoted ai L'Kil hut sales are lew and far between and they must now recede to par in view of the new Government issue. It is doubtful if the small investor will subscribe for this issue. for hi - savings are small and the cost of living is still very high. The average business man cannot do much for traders require all their funds to I'maine themselves. A little assistance may he obtained from insurance companies hut as these concerns can obtain an equally high return on Commonwealth stock'wit limit having to pay the high income tax demanded in New Zealand they are not likely to rush the Government loan. The banks will require ail their funds to iiuuucc the country's produce which is rendered m ire difficult because of the dislocation caused by the shipping hold-tip. The Governmeiil may secure a few thousand pounds during the next four or live months hut there will be no rush for the stock. Should it secure any large proponum of the money required will it he lent by the Advances Depart imuit at iht cent or o J tier cent, j*.i all events will it he* seii-tmpport ing or a Imi-deii on the taxpayers? The point is of considerable interest t i those who pay taxes. ELECTION FORECASTS. Some I’arlian'-.'iitarians pos-ess a wonderful idea of their powers of divination. for scvcial have already ventured on a forecast of the election resulis. Thu- .Mr R. A.li'Ki'i-n. who -.coking re-ch'i'l ion in the Labour interest for Wellington South, expressed the opinion lhal il was a foregone conclusion the! the seventeen sitting labour members would he re-elected, and that the pro-peel- of winning at least Ii! addiiioiial seat- voie exceedingly bright. Ii Labour a-ii’evov this result it Mould he the dominant party in t.. 0 now I’arliamont. Imi this is counlm., tin. I ill !;- before they are hutched. Ai lea. ,i two Lalianr nicinheihave doulii! ;| pro .pi'i't tliese are Messrs Mi'K’i i u and .Monteitli. The former iopposed by A.lr A. !!. Sievwright a Lr oral, and la' is a lighter who c*. ill Sight Labour with its uV.ii weapons. Air Alonteiih aon on a minority last time and on a straight tight with Mr T. Forsyth he will lose the seat. Another candidal.* .aching re-election expressed ti;e opinion tiiai the Liberals will he so attenuated in the new Par-li;iliii-tiL that. fl;e few remaining will go over lo Reform. " I'efoi m " and " Red both I lie ill 1 r • l.ihi r.i 1.. bill ace i hey v i-o in do'im m>. pari i. like pennies, have a way ol surviving, and indeed ii is jus; possible, indeed in the oj it some n i, \ oev probable rii.it the Liberals will com,, hark with added strength. Retoim is on t i:e defcm e, and the ih-ds are al o i:i ilie same pn.-i----t ion, am! ii is Ike Liberals who are in a i.o-ilioi; in r,ttark, and the attack always attracts the crowd. There may he some very startling surprises al this i-ii'i tiun. igzamu/a-jg m