Parliament.

Manawatu Herald, 16 July 1895, Page 2

Parliament.

HOUSE OF UEPRESKNTATIVES. Friday, Ju^y 12. The Speaker took the chair at 2.30 p.m. The following Bills were Intro* duced and read a first lime \ — The Wilson Land Bill ; the Bemoval of Women's Disabilities Bill, and a Bill to e.iable Women to Practise the Profession of the Law. Upon the House re assembling at 7. 30 p.m., the Hon. Mr Ward, who was well received, laid on the table of the House a circular issued by the Agent-General in reference to the New Zealand Government loan of £1,500,000, and moved that It do lie on the table and be printed. He said he proposed to lay before the House some information in conneo* tion with a very important matter that had exercised a good deal of attention both in and out of the House. He referred to a statement he had. made before the London Chamber of Commerce in reference to the decision of the Government to collect the land tax at an earlier period last year than usual. He., told them in London how it baa 7 been urged that the Government had decided upon this course because it was hard up for cash to meet in* terest falling due in October. He had told the London Chamber of Commerce that the actual facts were these : — Instead of being hard tip for cash at that time they had lying in London, and had still, some £3,000,000 worth of securities of New Zealand against which at any moment they not only could have raised the interest falling due, but could have got twice or three times the amount if it had been necessary to do so ; that some two millions of the securities were sent Home by himself previous to the financial crisis which swept over Australia, because he believed it neoessary to be on the safe side in London and in order that their position should be , rendered free from risk. He had added that if they had not collected the land tax as they had done in ; anticipation of the due date, they would have had to issue Treasury bills for the amount, and that he believed anticipation of the collection of the land tax by a few months was preferable to that course. The total amount of the loan was £1,500,000, and the Colony paid nothing for underwriting. They really obtained for the loan £1,416,* 601 2s. If members would deduct that from the total amount put on the market, they would find that it left $88,880 18*, which represented the difference between tho Bomlnil 'M&wftfli 9f m tarn wl to t»th

proceeds. Now, he had provided for a sinking fund of 1 per cent per annum to the interest payable on the 8 per cent stock, in order to provide a sinking fund which would be sufficient to meet the advance of £88,898 18s. It would be therefore seen that there was a difference of 6s 6d per cent per annum in favour of a 8 "per cent loan subscribed at £94 83 6d, as compared with a 3£ per cent loan issued at par. The 'savinjp.effected upon the loan was equaxto £4125 per annum, which, at the rate of 8 per cent, would for the currency of the loan, at compound ' interest, amount in round numbers to £466,000, or, if invested at 8$ per cent, would produce £501,-----000.. An operation which resulted in such an enormous saving to the > Colony was one which any country, an! more especially a young country eucn as New Zealand might justly feel proud of. Sir Robert Stout said that the statement of Mr Ward was not proved by the facts. We had no unpledged securities at the time mentioned. They were under the care^Qf three trustees becausa they Were pledged. It was a misuse of words' to say they were not. Where Was the Treasurer's evidence for it ? (MrtWard : It was quite right.) It

was quite wrong, and, if Mr Ward did not know it, be was unfit for hie position as Colonial Treasurer* The suggestion that they could take the public trust money which belonged to the people who put it there, and claim it as Government securities) was one of the most damaging that could be made against the dredit oi the Colony. Likewise with the Government Insurance securities. Then, as to the statements of the Agent-General in his circular. It was misleading. It led the moneylenders of London to believe that the money was to be advanced only on freehold land, which was of coulee not the case. The surpluses were also misleading, and the manner in which the public debt of the Colony was set out was grossly misleading, Other members having spoken Captain Russell moved to add to Mr Ward's motion " that the circular be referred to the Public Accounts Committee for investigation and ' report," which after further discussion was lost by 37 votes to 16, and the motion was then put and carried on the voices. The House rose at 2.50 a.m.

Am'EiflriißiiNU uijuuiyb oi an descriptions made at the shortest notice by McKef, & Gamble, New Zealand Press Agency, Custom House Quay, Wellington.