DOMINION FINANCE.

Manawatu Herald, Volume XXXVI, Issue 1316, 27 October 1914, Page 2

DOMINION FINANCE.

REVIEW BY MINISTER. COMPLETE CONFIDENCE IN PRESENT CONDITION. • Auckland, October 25. Complete confidence in the condition ot the Dominion’s public finances was expressed by the Minister for Finance on Saturday. “ Considering the times we are in, the financial position of New Zealand is especially good,” Mr Allen stated. “There can be no question about it, and I have no hesitation in saying that so far as the finances of the country are concerned there can be no comparison between the conditions today and the conditions we found when the Government took office. The position is insuperably better, especially the condition of the State advances funds and public works fund,” Mr Allen said. A Loan Bill would be introduced in the House of Representatives to-day, and he would then make an important statement regarding financial matters. Recent criticisms ot the Government's borrowing policy would be answered by a complete review of its loan operations in comparison with the transactions of its predecessors ; a statement of the present condition of the public funds would be given, and the Minister would also discuss the prospects of the future. Mr Allen explained that expenditure for military purposes was being met by funds raised through the Bank of England on Treasury bills, on very favourable terms. Sufficient funds remain from the last loan to continue public works, and since the latter were of essential importance the reduction in the advances to local authorities and others had been made so that the balances in these funds might be temporarily used for public works. The position in regard to the unconverted portion of the Ward four million loan, amounting to ,£3,200,000, maturing in December, was not satisfactory, as the attitude adopted by subscribers of the loan made it necessary to raise a new loan to repay the money. The holders of debentures refused to renew them, to convert them into stock, or even to sell them, so that the loan must be repaid. Mr Allen said he expected it would be necessary to obtain the money to repay the loan by issuing Treasury bills. The Mother Country was going to raise a loan next year to pay off the Treasury bills which she was now issuing at the rate of .£15,000,000 a month. Mr Allen stated : “We have every reason to believe that the Imperial authorities will make provision in that loan for the requirements of New Zealand securing for us a sufficient amount to enable us to pay off our Treasury bills in addition to the loan for which the Government is seeking authorisation. That loan will probably be for a long term, but in any case we can be quite certain that it will be raised by the Mother Country on more favourable terms than anyone else will be able to secure.”