COLONIAL BORROWING FOR PUBLIC WORKS.

Southland Times, Issue 1590, 11 June 1872, Page 3

COLONIAL BORROWING FOR PUBLIC WORKS.

«, A paper was recently read before the Royal Colonial Institute, in London, by Mr Hyde Clarke, Secretary of the Council of Foreign Bondholders, " On the Financial Resources available for the Developement of our Colonies." Mr Clarke pointed out the necessity which lies upon colonies to develope their resources, and argued that the vapid growth of improvements in mechanical matters forces on this developement at a rate never before dreamt of. Public works of all kinds are demanded, railways more especially. This " provision of the appliances of progress is a necessity and a duty, which cannot be evaded or postponed without prejudicial consequences." He then remarked : — " There are Colonial Legislatures at this moment dallying with questions of public works, postponing the consideration and construction of railways, in the hope that they may substitute cheaper tramways, and, according to their phraseology, endeavoring to economise capital and avoid the trammels of debt. In most of these cases they are not economising capital, but retarding the progress of the country, and rendering it less able to encounter the responsibilities of borrowing, and more liable to pay a higher rate of interest. Economy in States consists neither in absolute avoidance of indebtedness, nor in laying out the smallest amount of capital, but in so apportioning the operations, that the citizen shall obtain the greatest possible amount of benefit individually and in his collective capacity." Mr Clarke saw no temerity in a Colonial Government contemplating a very comprehensive scheme of railways and other public works,. and looking to the money market of Europe for the means. "Where the lines cannot be built altogether or in part from surplus revenue, the capital, he holds, should be borrowed, and he remarks that " as the works should be reproductive, the new country can look on the progress of acquiring the capital with safety and satisfaction, and, indeed, with eagerness." He particularly invited those colonies which produce gold to resort to the home money market freely for the necessary capital to carry out reproductive works. Those colonies, he says, " will obtain capital cheaper in the London market, to which the gold is transmitted, because they can obtain the loan of capital for the longest periods on the lowest terms."