Untitled

New Zealand Times, Volume XXXII, Issue 5056, 7 June 1877, Page 2

"Anglo-Australian," writing in the European Mail, lias the following on the Home money market and New Zealand investments :—■ " Money never was so abundant and cheap as it is now, and foreign investments, as a rule, being looked upon with (great suspicion, home aHd colonial investments are nearly all that are left to absorb the immense wealth which has accumulated since New Year's Day. Under these circumstances the investing public are easily tempted to lend their savings at (> per cent, to a British colony, and this was how the floating of the Christchurch and Wellington loans was so successful. It is a pity the former did not ask for its £200,000 instead of £IOO,OOO, because the municipal authorities for these cities came into the market in the nick of time. Dunedin wants £IOO,OOO ; the sooner she asks for it the better, for it is likely to be many years before such an extremely favorable opportunity occurs again. The loan of £6s,oooforOamaru, tendered for on April 10, brought tenders for £BI,OOO, showing that the public have still faith in the stability of New Zealand. When the Now Zealand Government announced during laßt j year that it should borrow £2,000,000, it I rather surprised the great money lenders. The Times and Economist had adverse articles [ on the subject, and very soon the effect of such loan was discounted and the worst known. After that your Government decided to only borrow one million. This ia not so generally known, and it has had no good effect with the investing public. In fact, to borrow a million one year and another the next year was the policy to pursue. The five or six brokers and one or two banks, holding considerable parcels of your bonds, might object; but as long as there was no infringement of any agreement not to borrow this year, they had no right to do so. There were other brokers and banks and public investors, and millions of money for which fair investment could not be found, and why should your Government debar itself from taking advantage of this favorable state of the money market ? As it is, they must resort to Treasury bills and securing advances on debentures, and then come into the market next year, undermuchmorediscouragingcircumstances, to raise a loan to pay off old debts. This is to be regretted, especially so when there is amongst those acquainted with New Zealand affairs a great sympathy with your presont Government on account of the struggle they have had to abolish provincial institutions. The abolition of the provinces has tended to raise the monetary credit of the colony."