The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY APRIL 6, 1926. THE FINANCIAL OUTLOOK.

Hokitika Guardian, 6 April 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY APRIL 6, 1926. THE FINANCIAL OUTLOOK.

Nkw Zkai.axii is about to go on the loan market again. On this occasion four millions arc? mentioned as the probable amount of the loan. New South Wales has just had a setback with its loan transaction at Home, but it would appear New Zealand is more hopeful, or its loan would hardly be announced on th? heel of the Australian loan. When the latter was on the market, some remark was passed as to the greater information afforded by Now Zealand in particular when launching a loan, and no doubt in the present instance the Dominion will bo at more pains than ever to indicate the fullest particulars to attract investors. It is conceivable that a large proportion of the borrowed amount will be available for expenditure in England for machinery and supplies for great State undertakings. The hydro-electric schemes the Government hare in hand require much outfitting with machinery, and there is the ambitions schemes also with regard to railway workshop construction. Some weeks ago the Prime Minister intimated that tenders would he called for the first instalment of the programme. The initial expenditure, which will go to the four centres, will total about £BOO,OOO. and will be spread over a period of three years. It was indicated that it would be n stipulation when tenders were being

called that only material produced in the British Empire shall be used. Tills pro-British attitude will help to captivate the London money lender, for it will he to that market where New Zealand will go. On the whole, therefore, a successful flotation may be looked for. But it is unfortunate that it is necessary to go abroad for so great a sum. The Government has been borrowing what it- could locally, but the amount is not adequate, nor is it economically sound that the Government should drain the available* supply. The new money from outside has advantages financially which all classes nf the community will enjoy. Ministers generally have I wen remarking on the financial trend of events, and the need both for economy in expenditure and greater production of products and commodities. The margin lietween imports and exports is narrowing all the time, a fact which is giving much concern to all watching the financial barometer. The balance in favor of the Dominion is much less than it was a year or so ago, and that fact points to a probable stringency. There are fears that a very quiet winter period is in sight. Perilps it is to help over that difficulty that the Government is seeking more money to ensure funds being available to help meet the cinergnev. As to the general outlook, the Prime Minister and his colleagues are all advising nione production su as to

ensure an ever-growing increase in the value of surplus goods for export. Last year, so far as the figures wont, was a very good year—the volume of trade being very high—but no sooner is the year past, than there is a call lor nioie production still. That fact indicates that the general situation is far from satisfactory, hut it is not likely to he permanent. The season just past was far from good, and depreciated production very considerably. r J here is no occasion to lose hope, hut while living hopeful there is the need for carefulness, and it is in that direction, both public and private that judgment should he used in carrying out administration. The financial outlook may ho and is gloomy to a certain extent, hut with courage and confidence, and the will lo work. Now Zealand has the people and the resources to make good, and i (iino through its financial difficulties satisfactorily.