Manawatu Herald. THURSDAY, JAN. 9, 1902. The Public Debt.

Manawatu Herald, 9 January 1902, Page 2

Manawatu Herald. THURSDAY, JAN. 9, 1902. The Public Debt.

Some Opposition journals desirous of running down the Government eagerly seize hold of any expression of opinion that is to their taste, little heeding where it comes from or of what real value it is. The “ Bulletin ” has been delighting some of these journals, hugely, by having written the following:—“ Seddon isn’t so very old after all, but he is mouldering for the want of a big idea, and a big opponent, and a big fight—also a big advertisement. He would get all four if he formulated a scheme for dispensing with leaps, and paying off the loans that Maoriland has already incurred. And there is nothing impossible, or even improbable about the idea.” In this sapient remark we notice the paper is backed up by the Eangitikei Advocate which gravely asserts;—“ It is possible to at once begin to repay. If the cost of Government were reduced to the same amount at which it stood when the present Ministry entered into office, the whole of our borrowed money could be repaid in less than twenty years, because in addition to paying off the principal each million of it so repaid would mean an annual saving of about £40,000 interest.” It is not always because a thing is possible that it is a wise thing to do. It is possible to go to a chained up bulldog and try to pat bis head, but it would not be wise to act so. As in the matter of our debt it would be possible to pay off all our loans in less than twenty years and thus save paying, interest sooner, but it would be found unworkable and a big mistake. What on earth does any one want to pay off a loan ? Have the consequences ever been thought out ? At the present moment this colony possesses a public "debt of 49f millions, a respectable amount for a small colony, and is a certificate of the belief of the lenders in the honesty of the colony. , The whole debt could be wiped out by an immediate payment of £63 per head of the population. The most important question for public men to study is whether the people would like to pay this amount up, or to keep on paying the sum demanded per year, not only for interest on this big loan, but alsb for the general revenue of the colony which, at the outside is under £4 per head. We have a very strong opinion as to which they would choose, and if we are correct in estimating that paying interest rather than the return of capital is that which all would choose, what then is the value of the remarks made by the “ Bulletin ” and the “ Advocate ?” Those who waste time and paper in suggesting such tasks to the Pc mier pay him the greatest compliment possible in showing how hard it is for them to find more rational criticism of his actions.

It is easy to offer advice and the “ Bulletin ” preaching reduction of debt to New .Zealand appears amusing when it either fails to see how black is the kettle which is declaring the blackness of our pot, or else has preached and preached in vain to those in its nearer neighbourhood, It is unnecessary to mention that New South Wales has a debt, that was a sure thing, but what is remarkable in a colony that possesses a “ Bulletin ” as a financial critic is the fact that the debt of- New South Wales is nearly £5 per head of the population more than the debt of New Zealand, and there appears no signs of New South Wales formulating “ a scheme for dispensing with loans, and paying off the loans ” that that colony “ has already incurred.” On another occasion we shall have more to say about the wisdom and practice of borrowing which is without doubt the popular, even if not the proper way, of opening up countries. To-day we have just drav.v; the absurdity of

echoing a “ smart ” paragraph with the idea that anything to hit the Premier will do, even if not true. It will be seen that the Premier has more serious and grander work to do than that so flippantly’ proposed.