NEW ZEALAND FINANCE.

King Country Chronicle, Volume III, Issue 196, 4 October 1909, Page 5

NEW ZEALAND FINANCE.

Million Loan. The Prime Minister, ; ; ir Joseph Ward, this morning made an important statement in regard to financial matters When interviewed by a Press representative on the subject. "While in England! obtained a million of money, and bad it sent out to New Zealand. £500,000 of this amount is for the Advances to Settlers Department, and £500,000 for Public Works. This money was obtained without the assistance of the Government bank in London, and 1 am very glad to be able to say that our financial position therestands as strong as ever. I alio laid a basis for obtaining in London all monies required by local public bodies in New Zealand at a rate of about 3$ per' cent. These sums, however, will only be obtainable in sums of £IO,OOO and over, and for that reason legislation of a special nature will be required. Such legislation will be covered in proposals which I intend to submit to Parliament during the coming session. It will enable a grouping of local public bodies'requirements, so as to nave the loans of each included in one big sum, which can be floated on the London market at the rate I have mentioned. When this is made possi- < ble by legislation we will have no difficulty in obtaining all the money we may require at a low rate of interest in the Old Country. If existing legislation had permitted this grouping into amounts of £IOO,OOO or more, I coulud have obtained, while in London, another £500,000 or a million, and sent it out at once. As soon as Parliament meets arrangements will be made to get the necessary legislation through. I want to make it clear, however, that public bodies will not be encouraged to go in for wild borrowing. Where money is obtained it mu.n be for legitimate purposes, and it will be necessary for this to be thoroughly understood if my proposals arc to !■<.• satisfactorily arranged, and the work carried out from year to year as the circumstances require."