The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JANUARY 7th, 1926. THE MONEY MARKET.

Hokitika Guardian, 7 January 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JANUARY 7th, 1926. THE MONEY MARKET.

It would appear that New Zealand is r doing what it con in a quiet way to raise money in Australia by way of a loan. That much information is being gleaned from the Australian newspapers, but our Minister of Finance has not made a statement on the matter. The sum thus quietly raised is given ■ out at £2,150,000, a fairly substantial sum. There is no doubt that money is needed more or less urgently, and it is a fact that the government at this juncture may not successfully go on the - London market for a loan. The fact, too, that there is a tightness in the 1 Dominion money market shows that 1 internal borrowing may not be practiced to any marked extent to demonstrate local self-reliance. The wide | Public Works Policy in hand at present is consuming large sums of money, and the only way of finding what is required to carry on, is by immediate borrowing. The Government has ample unexhausted powers to borrow, and we may be sure from the trend of events the means will be used to the fullest extent. Failing the borrowing process, the Government would have to rely on local accommodation, which, if attempted, would tighten up Dominion money for trading purposes. When the shipping strike took effect, the hanks notified their clients to limit payments for butter fat to Is 3d per lb. This was a necessary safeguard useful alike to the bankers and the trading companies. The produce is now getting on to the London market, and the returns will he coming to hand, hut there is no inflation of the market, and consequently the precaution taken by the hankers was a wise one. As regards the loans now being raised hv the Government, a public statement would l>e welcomed as to the purpose for which the money is being raised. In fact it is time something was said about the future control of the national finance. Possibly we are unreasonable in expecting such a statement until the Prime Minister re-nr-ranges the Cabinet—a task becoming daily more and more overdue. The new Minister when installed, wiTMie in the position for an extended period, and he will be expected to take a firm grip of the country’s finances. It is a one man job—liig enough to occupy his full time without attention to any other portfolios. To be successful, the finance of the Dominion must be thoroughly overhauled. This applies alike to receipts and expenditure, for one must govern the other if relief is to come to the national finance. Balancing the Budget is essential, with something to the good on the credit side so as to ensure a reduction in taxation, and some relief regarding the frequency "'ith which the country seeks to borrow money at every opportunity, i With the outlook such as it is at pre- 1 sent, sound finance is called for, and I

this can come only from nil intimate study of the national position, and the ability to live for some time within our means. There can he no more peak years for a considerable period. The pendulum will be swinging the other way and wisdom will be shown if that eventuality Ts prepared for lectures. The people have the right to know all about the national finance, and the periodical reviews which used to be made by Sir Joseph Ward in times past, would be welcomed again, so as to give confidence amT encouragement to tbe people as a whole. Tile most that is beard now is confined to warnings by bankers and others. Those controlling the national finance do not favor us with any details of the financial position, but a confiding people has put their trust in the government, and not many voices will be hoard in protest at the lack of important information at this juncture.