OTHER PAPERS’ OPINIONS.

Putaruru Press, Volume VII, Issue 271, 17 January 1929, Page 4

OTHER PAPERS’ OPINIONS.

GOVERNMENT LOAN POLICY. Sir Joseph Ward is full entitled to claim that the country’s high credit has again merited the confidence of the London market. It was justified by the success that attended the flotation of the new £7,000,000 loan. If the conversion loan proves as successful then the country will have no complaints concerning Sir Joseph’s financial predictions. There is one point which is not quite clear from the Prime Minister’s remarks. What action is to be taken in reference to local borrowing ? In a statement issued last week Sir Joseph said:— “ T had tentatively arranged, if required, to obtain an additional £2.000,000 locally, to ensure that all. purposes that T had publicly laid down in the policy as submitted to

the country would be provided for.”

At the same time the Prime Minister makes the further statement:— “ I decided to increase the loan from £5,000,000 to £7,000,000 for public works, including railway construction and improvements and hydro-electric schemes.” This appears to mean that the £7,000,000 raised in London is to be used for public works of various kinds. To supply money for the State Advances the home market will be sought, and the £2,000,0001 loan tentatively arranged will be floated. That is, the loans will total £9,000,000. There will be no objection to this, especially since the present year will provide a substantial balance of exports over imports. But continuance at this rate may create an artificial boom prosperity.—Morrinsville Star.