OTAGO LOANS.

Lake Wakatip Mail, Issue 277, 23 December 1865, Page 3

OTAGO LOANS.

(Condensed from the Bruce Herald.)

Although it is advantageous for a country not to be burdened with a national debt, it may, nevertheless, be a wise and judicious measure for the Government of a country which is in the course of colonization, and the revenue of which is of necessity small, to occasionally borrow money for the purpose of expending the same in national works of importance. The principal objection to such borrowing is its being requisite to resort to taxation for the payment of interest on the amount borrowed. # • * Now, as regards the sale of the Government Debentures of this province, the Provincial Treasurer, in making his financial statement the other day, let fall some remarks which show a state of affairs that it is not pleasant to contemplate. The Provincial Treasurer stated that the unsold balance of the half-million loan was "sold on the 23rd June, at 80, including a half-year's coupon, which practically reduced the price to 77." Now, this is a terrible depreciation. This is the sacrifice of nearly a quarter of the principal money, and necessitates the payment of a very high rate of interest. There must surely be a gaeat loss to the province consequent upon such a sale. # * What is the reason that the Debentures of this province find so little favor on the London Stock Exchange? Sjirely there can.exist no apprehension that the debt will ever be repudiated, as happened in the notorious cases of the Pennsylvanian and Spanish Bonds ? Although there might be a delay in payment of interest, should a province get into difficulties, yet the Home Government would probably never permit repudiation of a public debt by any of its colonies. Probably one reason of the disinclination to lend ;noney at home is the little that is known there of these parts. We should probably be surprised if we knew the extent of ignorance that exists in Great Britain as to New Zealand affairs. The idea there of New Zealand probably is, that it is a wild country at the antipodes, the few settlers in which are in a state of almost continual warfare with the savage natives, where the population consists of these same savages and of a few farmers, squatters, and gold diggers. It is out of the question that the province should continue to borrow money, and incur a loss similar to that upon the late sale of the Provincial Debentures of Otago. ♦ We are given to understand ('Tuapeka Recorder') tiiat Mr S. Symms has entered into arrangements with several claimho'ders on Commissioner's Flat, for the purpose of supplying a powerful steam engine and pumps tor the draining of the ground, which has already proved to be highly auriferous, as much as a pound weight per day having been washed from some of the c aims, but in consequence of the great body of water that exists, operations, have for some time been retarded, and the step now taken by the gentleman referred to is looked upon as one in the light direction, and must prove a great acquisition towards the development of the auriferous resources of the Kanieri. The Canterbury 'Press' says:—" An acccident occurred last evening to Cobb's coach, from Kaiapoi. On turning out of the Papanui-road into Durham-street a donkey cart was in the way, at which the horses took fright and swerved off, dragging the coach against the verandah of Griffith's store. We regret to state that Dr Dudley, of Kaiapoi, had his arm broken, and several other passengers were much shakeu. Considerable damage was done both to the coach and to the building:" The * Southern Cross' says :—" Some fine specimens of copper, found on the sea beach, have been left at ttie office for inspection."