The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. WEDNESDAY, JANUARY 7, 1885. NEW ZEALAND LOANS.

Manawatu Standard, Volume IX, Issue 31, 7 January 1885, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. WEDNESDAY, JANUARY 7, 1885. NEW ZEALAND LOANS.

"At last the Colonial Treasurer has condescended to make public the reasons why the Ministry has seen' fit to alter the, intended arrangements with regard to the Loan. It is rather strange , why this explanation was not given to the Wellington newspapers, but insteacl that Sir .Julius should wait until he left Wellington to make an explanation, and then should have communicated it to the Auckland Herald. \We re.produce the official "explanation"' as issued. 1 1 is as follows : — " There is no truth m the allegation that a million and a half is not floated now because of any doubt of the market or any objection about the sinking fund, or anything directly or remotely related thereto. The sole cause of delaying the million and a half loan is because of the Bank of England considering that the pledges previously given prevent the floating of any loan but the three million loan until after the expiration of the financial year at the end of March next. The million and a half will be floated later m the year, and the million will be floated at once. It is of course true that the market is not very favorable just now to new loans. * The rate of discount is high, and the price of consols amount to reserve." VVe take leave to doubt the entire correctness and reliability of this " explanation."" We believe there are grave doubts existing as to the success of a New, Zealand loan just now. There can be no doubt that our colonial securities are not m as good odour as they were some months ago. Further, the proposals with regard to the alienation of the Sinking Fund are bound to have had a certain embarrassing effect, as no investor m public or private securities cares to have his security diminished m any degree. We do not think there is any disguising the fact that confidence m our colonial securities has not been strengthened by the recent political changes that have taken place. We shall be agreeably surprised if the million and a half loan will be floated at the time appointed, viz., the end of March, or that the million loan now m the market will be subscribed. We sincerely trust it will, but we have serious misgivings about the matter. Even if it does float, kjt not a fact that about three-fourths of k Jaave already been hypothecated, indeed, actually spent ? The outlook is, therefore, by no means encouraging. If tpe Loan does float, it will be simply •" working Quit a dead horse,* 1 to use rather a vulgar but easily understood phrase ; ; U it fails, our position is one of (Jire

emergency. If this "explanation is true and correct m every particular how, are the recent cable items anent the Loan to bo explained ? The telegrams to which v>o allude are, firstly, one despatched from London on the 28th December, announcing that the New Zealand Loan was received with disfavour ; secondly, one of the 29th December, stating that, m consequence of the bad state of the market, the issuing of the New Zealand Loan would probably be deferred, and the amount reduced to a million ; and, thirdly, the telegram stating that the members of the Stock Exchange protest strongly against the alienation of the New Zealand Sinking Fund. We cannot help being impressed with the belief that these telegrams are based on a substantial foundation of facts, and that the proposed alienation of the Sinking Fund has created an unfavourable impression on the Stock Exchange, by which body, possibly, the pro- ! posai is considered to imply something approaching to repudiation m the near future. We do not see J how the proposal can be viewed m j any qther light than a breach of faith with the Home creditors. All ' the aspects of the position have a special significance just now,, when depression reigns supreme throughout the Colony, and whe*n the darkening cloud which seemed likely to lift some little time ago, when the new Ministry took office, now hangs lower, and is apparently more immovable and impenetrable than ever. All the indications point to an early dissolution, and an appeal to the country, as the only practicable solution of the embarassing and very ominous complications now impending on all sides.