WELLINGTON NEWS

Hokitika Guardian, 3 May 1927, Page 4

WELLINGTON NEWS

BORROWING IX LONDON. (Special to “ Guardian.”) AA'ELLIXGTON, April 20. The Commonwealth Government Conversion Loan of L'l 1,711,000 at 5 per cent issued at £9B, lias proved a fair success, as the underwriters are left with only 27 per cent. The loan has been a lone time before llie public and there must have been a considerable amount of quiet canvassing to get results. However, as the scrip is being dealt with at a premium of one-six-teenth the underwriters will net out without any loss. The Slate of X.S.AA • stands has loans falling due in London within the next few weeks, and Mr \\ . ,f. Me Kell, Assistant Colonial Treasurer, has heon sent to London to make

the position easy for a conversion loan. The credit of X.S.W. stands very low in London, and that State will lind if very difficult to arrange matters faetorilv. London financiers are cel -

tain to st i pula to for tt .sinking luml on the lines arranged with New Nork. New Zealand will he on the London market very soon and the stage lias been carefully set to secure success.

An official from the Treasury has been in London for some weeks paving the way for the new issue. The grant of C 1.000,000 towards the construction of tht> Singapore base is a very good advertisement and the surplus lor the financial year is also another good point. New Zealand's credit, stands well and the Government will get all the money wanted, but may have to pay a little more than was paid lor the loan raised last year. On that occasion a loan of £(i,000,000 was offered and the subscriptions totalled 110 millions sterling. Since then, however, the economic position lias changed considerably, and there is not much floating capital available in London. Australia is coming in for a good deal of criticism for borrowing, hut New Zealand is doing relatively as much as the others. Considerable alarm is being felt in Australia at tile expansion ol

the interest charges, and at every meeting of l ank shareholder.-,, and also at meetings of insurance companies pointed references are made to the growth of the public debt.

The matter was discussed at the annual meeting of policy holders of the Australian Mutual Provident (society. It is stated that more than Cl,000.1)03 has to be found each week to meet interest on Commonwealth and State debts. In 1 020-2!i the sum paid abroad as interest by the Commonwealth «as ■08,720,330, ntul by the States CIO,03!-,-f)So. On loans floated in Australia the Commonwealth also bad to find as interest in H>23-2<> C10.107.231>, and the States Cl 1,737.310. The total of interest was provided by the Commonwealth and State Treasurers for the financial year was therefore £33.370,033 and as borrowing has gone on steadily since an additional burden has been placed on the shoulders ol the taxpayers.

The heaviest debtor State is X.S.W . ilias now to share its finances so as to provide more than Cl 1.100,000 annually as interest on loan funds. War debts of Australia amount to more than £300,000.00;). and a sum of £370,000.000 is represented by railways and other public utilities. It is computed that at present the annual net revenue from such State undertakings falls short of the total interest by £20,000,000, and the deficiency has to he made up by taxation. A COMPETITOR OK NRW ZEALAND A British armv officer who bad lived for a time, in Argentina prior to the war. and who has since taken up louiirry in the neighbouring republic of Paraguay, furnished a Buenos Ayres paper with some notes on the cattle industry there. His property is in the south near Santiago, in what is described as pleasant undulating country, well watered and wooded. It is very healthy for man and beast, but apparently licks tans.- some trouble, for the writer mentions the necessity for diming, and add* that the firstcross stock are less affected than imported, but must nevertheless be constantly looked alter. Sores caused bv ti e ticks arc very liable to get flyblown. '1 bo carrying rapacity of the native pastures is evidently good. Tt is usually reckoned lliat a Paraguayan league ('approximately 4.080 acres) will carry •i f'rysnnd bead of critic. If. liow- ■ o". D o land is divided into relatively small paddocks, say to the league, more cattle can be bold. The abundance of water facilitates subdivision. At the end ef December last year fat 4-year-old steers were fetching about -3 10s per bead and cows £4 4i». a price that was considered satisfactory. Wages of “camp peons”, native labourers, were a little under 20s per month. Good cattle country, only partly improved could be obtained for between B)s and 11s an acre, and well improved land for 1.3 s an acre.