WELLINGTON TOPICS

Hokitika Guardian, 14 January 1929, Page 3

WELLINGTON TOPICS

LOANS AND CREDIT. -MISUNDERSTANDING. (Special to “ Guardian ”.) WELLINGTON, January 11. The “ Dominion ” still finds it a little difficult to reconcile itself to the new political conditions which require it to champion the Opposition and no longer succour the Government. Jt is needless to say that it fills its new role with tact and ability. It is a little prone, however, to magnify the sins of omission and commission of the new Ministry and to cast suspicion upon its candour . and integrity. “ Another seven millions has to all intents and purposes been added to the public debt of the Dominion,” it told its readers yesterday. “It is obvious that the golden dream of money borrowed at per cent to be advanced to farmers and workers at 4-J per cent cannot materialise unless the Go vernment is prepared to embark on the dangerous course of saddling the country with an annual loss. Though the election promises of Sir Joseph Ward are not likely to be fulfilled so far as the rate at which the money will be advanced is concerned the Prime Minister has lost no time in his loan raising.” Much more to the same effect need not lie quoted. R ATE OF INTEREST. The Opposition organ takes it 'for granted that with loan money costing nearly 5 per cent Sir Joseph Ward will be unable to make advances to farmers and workers at 4$ per cent. It is quite a. good rate of interest from the borrowers’ point of view, it admits, but it will prevent Sir Joseph fulfilling his promises from the hustings. This implies that Sir Joseph was definitely committed to securing the money at 4\ per cent and makes no allusion to the fact that he was unaware of coiu ditions which were not communicated to him until after the recent election and his own assumption of office. In the circumstances it is scarcely fair to suggest that lie is going to hand money to workers and farmers at a rate of interest that would place an additional burden upon the taxpayers or that lie is going to abandon his scheme of assistance. If the money can be invested upon undoubted security at 5 per cent, it will be acceptable to the people concerned and the assistance will in volve no loss to the State. DOMINION’S CREDIT. It is evident from the statement made by Sir James Mackenzie in the course of an interview in Auckland yesterday that financial authorities in London were not carefully informed of the character of Sir Joseph’s proposals when they were first submitted to the public. “ I was in England when the general election was in progress,” Sir Thomas explained to his interviewer, “ and financial circles were rather shocked when they read that Sir Joseph Ward proposed to go on the market for £70.000,000. The explanation that 1 have since seen of the proposals puts a very different complexion on the matter, but at. the time, the scheme stood without explanation of tlie method of spreading the borrowing over a number of years. If the, full announcement had been cabled at the time there would have been no unfavourable comment.” It was no* the fault of Sir Joseph Ward that imaginary stories got abroad, but now that he is at the head of the Government it is his business to see the Mother Country is kept better informed ALL’S WELL. In file course of an informal chat this afternoon the Prime Minister said he had been too busy during the last few weeks to read all the newspapers had said about himself, his colleagues and his policy. He judged from what he had heard, however, that the public generally was disposed to give the United Party a fair trial. The writers of many letters lie had received were much more emphatic than that and lie hoped he and his colleagues would be able to live up to all the good things his correspondents had expressed. Personally he felt confident that the Governenint would-make good, but be realised that all the results be desired could not be obtained to-morrow or even at the end of next week. The public was giving him lots of encouragement; his colleagues were iulfilling hi.s highest anticipations ; bis former opponents, for the most part were proving themselves chivalrous and helpful. There were big problems to lie solved—as big as any that yet bad been tackled —but they would be attacked, and with stout hearts they would be solved.