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New Zealand Times, Volume XXXIV, Issue 5837, 13 December 1879, Page 2

The news of the floating of thefive Million Loan, announced by Mr. all last night, is certainly very grading. If the minimum price of 97| onl has been obtained, it means that the cony will receive £4,875,000 for the noinal five million. According to our Pliamentary report, this was the pric'obtained ; but inasmuch as the copy othe telegram from the Agent-General, v.ich we publish elsewhere, does not specifthe price realised, we are forced to as-me that the price actually obtained i; - not been ascertained when the Agent-Gne-ral’s congratulatory telegram wasde-, spatched. The rate of interest t( be paid, even at the minimum price, vill only be about 5£ per cent, on the actual capital borrowed, so that the difference will not be very serious. It is highly satisfactory to be assuredby the way in which the loan has been sbscribed for, that the credit of the cokiy is still good ; that despite the large expeiditure which has been going on for yers upon public works, and despite the waveof commercial depression which has swpt over the whole civilised world, and hasaf late been severely felt in New Zealad,

the confidence of English capitalistsin the future of the colony is still stroig. It is fortunate that the loan has ben obtained without delay or difficult. Thanks to the extravagance of the He Ministry, the money was much needed o carry out the engagements entered inb by the late Minister for Public Worln and his colleague, the Native Minister. It cannot be doubted that a good impression was created in England by the news which has lately been sent Home of the sweeping reforms in our system of finance reforms by which the land revenue will henceforth be expended upon public works, and the ordinary current expenditure will be provided for out of the ordinary current revenue, which is to be derived from Customs duties, property tax, and stamp duties, &c, But for these reforms in our finance, the prospect of being shut out of the English market for a period of three years would be decidedly unpleasant. However, as there is every likelihood of the land fund proving a substantial source of revenue, which will yield a steady stream of cash with which to complete the most important public works of the colony, and to connect the main centres of population, the fact that the English money market will be closed for three years to come need not cause

forms a substantial guarantee that the property tax is no sham, as some have asserted. It will hav.e to be enforced in August next, in order to enable the Colonial Treasurer to use the land fund for subsidising the local bodies and carrying on the necessary public? works without loan money.