AN OLD-TIME LOAN.

Stratford Evening Post, Volume XXXI, Issue 35, 8 September 1916, Page 4

AN OLD-TIME LOAN.

People have been «o accustomed to New Zealand raising loans outside the Dominion that it. is probable few are aware that the present War Loan is not the'first that was raised in the local market. The Auckland "Star", points out that old newspapers furnish some interesting facts of what happened in the early days. In 18-15 the Government was compelled to raise money by issuing debentures, which carried interest at the rate of 8 per cent. At a time like the pre-, sent, when people are subscribing freely to a War Loan for which they will receive debentures and eertifi-1 cates, it is of interest to note that in 1845 debentures were forged, which resulted in a loss to the Government of £250. One man was caught and sentenced to ten years' penal servitude for having forged a debenture for 20s. In those days people's ideas were modest in the matter of loans. The Government had issued debentures for £6OOO. The Government had to face a financial panic shortly afterwards, owing to the fact that the Home authorities notified that it had no authority to raise that £6OOO by the issue of certificates. The seriousness of the financial position may be estimated from the fact that the colony was staggering under the enormous indebtedness of £14,000, and that the cash in the Treasury amounted to £l9 10s 3d. It vvats, however, true that the Government had a credit standing in the bank at that time of £3 Is 3d. Fortunately South Australia had a surplus of £6OOO that year, which was lent to the New Zealand Government to enable it to tide over the crisis.