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Hokitika Guardian, 5 April 1932, Page 4

It is a Imali bv sign In • eo New Z<*a- | in,! nil the money market again, '|'be possibility of such a step np I ”, ’ll red v.." :enn-‘c bill ’•'•ent’v. Yew y, a la nd his denmnsf ra t ml f<' the financier- I’ l I it !■• managing sanely, II nd is Lem m retrieving its position. Some folk are perturbed for the moment a- 01 til reason for I lie borrowing. But wt» may trier that it m I ,.:|.;ii the fina ' ui I tension. and lor Die tune being at load, so much h’ss will reunite I" he raised by taxation.

We hope the loan is not being raised to save economies. There is evidence on all sides that money can he saved in that direction, and we trust t-ne next loan is merely to meet the pressing payments, the funds for which could not readily be provided at tins end. Also the loan raised in London, where so much of our payments are due, will save a heap of exchange at these times, and that saving may rightly be a charge' against the oust of the money. We may take it therefore that the Government lias done tbe right tiling at this juncture, and that the funds, will be very helpful at a time when the money would ho required to lie found otherwise by local borrowing or from immediate taxation. The Hon. Minister of Finance; has referred to the credits New Zealand has in reserves, and while these may not he immediately liniuUotT excepting at a heavy discount, it would not he improbable to find the loan may he some advance against those securities. Mr Dowuie Stewart has the reputation for careful finance, and he has in the Prime Minister one who would he at one with him in all reasonable measures to secure the financial welfare of the Dominion, so we may take it that the entry of New Zealand on the London money market is in the best interests of local finance, and when a full explanation is made it will he found that for the country as a whole, a. very profitable step has been taken,