WHERE THE MONEY COMES FROM.

Southland Times, Volume I, Issue 54, 4 October 1864, Page 3

WHERE THE MONEY COMES FROM.

The. following extract from an article in the Wellington Advertiser will be read with interest. If the iuc-'Unt of the London correspondent be true, here is the whole mystery as to the money. So the London Branch of the New Zealand Bank is advancing £80,000 a month! We shali be curious to know at what interest. " The first instalment of your three million loan," writes a valued correspondent under date of London, July 26, "has at last been placed in the market to the extent of one million, by the agents for the Crown Colonies. Of the £1,000,000 oiiered, to be tendered for at a minimum of £DO, only £'(3,100 was applied for, and £2,000 alloted. Ollering it at 90, made the interest on it, at 6 per cent., equal to £5 lls. Id. per cent., and the amou.it you will receive will be I JOO,OOO instead of £1,000,000, which you would have received if it had gone at par, as it might have done if it .had been in the market in March last ; at that time money was much more abundant, and not so dear as it is how ; and, more than that, there was a general impression that peace would be restored to your Co'.Ony, and throughout England there existed a cheerful and kindly feeling towards New Zealand, which in all its diiliculties had faithfully met its engagements, but I regret to say a widely different feeling now prevails. The disastrous war news, by List mail, and. private letters, clerical and military ; the arli-les in the Times — which are gross misreprescn a ion of Native aH'airs, founded mainly on ■private ie trrs — have done their work injuriously to your Colony although the Imperial Government have bravely defended it. But, in a monetary point of view, what has done more harm to your credit in the London Money market is the fatuous course pursued by your General Government in repudiating the Panama contract, and just at the time when your loan was about (o be submitted to the competition of British capitalists. It was well known New Zealand was coming before the public as a borrower to the extent of three millions sterling ; and on the 4th of the present month, a letter, signed " Shareholder," appeared in the city article of the Times, complaining bitterly of the conduct of your Government in repudiating the Panama contract, in which he had invested £1000. He further hoped that capitalists would show their reprobation of such conduct by refusing to subscribe to your one million loan. His hopes have been realised to an extent which must, I should think, seriously embarass your Government, and prove almost fatal to the raising of loans required by your Provincial Governments, who, if they do get them, must expect to pay 8 per cent, for them. It is to be hoped after this pressure is over, much of the spendthrift character attributed to your provincial authorities will cease. At the present time it is understood that the London Branch of the New Zealand Bank is advancing your Auckland Government money at the rate of £80,000 per month, which is to continue until September next. This, with advances already made, it is said, will make your Government debtors to the New Zealand Bank to something like half-amillion of money, and if the million loan now under offer, is not negotiated in lime, it is sup-' posed that the agents for the Crown Colonies may apply to the Bank of England, and on your lands raise a temporary loan to relieve you from your present monetary difficulties, which have been produced by financial mismanagement ; and which it is to be hoped, the sensible colonists of New Zealand will prevent a recurrence of. What all your emraigration agents are going to do seems wonderful. One has arrived, officially accredited, to raise colonists for the Bay of Islands in Auckland Province. Two others have also just landed, who, ■with, an emigration board consisting of two principal agents, are to engage a host of settlers for Auckland. London is placarded all over with tempting offers of gifts of land and free passage to Auckland. The name of " Auckland " is seen everywhere : people must think Auckland is all New Zealand. It is true large Wellington, little Nelson, great Canterbury, prosperous Southland, and mighty Otago, are known to men in business; but poor Taranaki, Hiiwke's Bay, and Marlborough, are at present only known to the initiated Ido not think it will be worth while for any of the other provinces to send home agents to procure emigrants ; Auckland is in the field, and there is no vhance for others until such an amount of the three million loan as can be raised is, expended.