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Hokitika Guardian, 8 March 1928, Page 2

In the course of Hon Downie Stewart’s financial address at Dunedin last week he touched upon the indebtedness of tin* country, and proceeded to justify it During his defence in vindicating the borrowing policy and the legacy of protracted debt thereby, he referred to what New Zealand had borrowed for State Advances purposes. In doing so he vindicated very amply the policy of the Liberals in 1895 introducing the law a fleeting State Advances, enactments which the party Mr Stewart is now associated with, fought to the last ditch. The old Conservative element in their Opposition were out and out opposed to the principle of the setting up of State lending departments. The Government was sincere and resolved in its intention to provide cheap money for the settlers and the workers, and the State Advances' was the corner stone of the policy. How that policy has been triumphant in meeting necessities in a very liberal

way and at Hie same time paying its way and giving the country a profit, is best told by the present Minister of Finance, who speaking at Dunedin on the public debt went on to say that for example. New Zealand’s debt includes over £31X1.000.000 raised for the purposes of State Advances, which lias no counterpart in the total for Australia, where Savings Bank funds and other resources are used for advances. This item of over £30,000.000 is a genuine investment, which not only pays interest and sinking fund, hut has earned a. profit at present amounting to nearly £1.500,000. This profit is arrived at after allowing for all losses on realisation, and for income tax and management expenses, including the superannuation subsidy to its own employees. Since the commencement, of operations in the year 1895 the total losses on realisation were £51.000, being a loss of 0.095 per cent, or Is lid per £IOO of the total sum advanced on mortgage. "When it is remembered that there has been advanced a total of £56.200,000 since the inception of the scheme, £22,000.000 of which has been repaid, it will be seen that this is a very remarkable record. In fact, this one item of oyer £30,000,000 is not

only not a burden on the taxpayer, but it is a source of profit.” This statement of the case is very satisfactory after a trial extending now over a third'of a century, and must he a great source of satisfaction to Sir Joseph Ward, who, of the Liberal Cabinet of 189 b, alone remains in the House to appreciate how the party of the former times which cursed the proposal and blocked its enactment by all possible means, has now l>een converted to praise the principle and the policy to the high degree mentioned above. It is interesting and timely to recall the accomplishments resulting from tlie policy of the Liberals ns some enlightenment to the new generation growing ii]) who may not lie conversant with the heritage the country came into by the progressive policy of the Liberal party in times past.