PLENTY OF LOAN MONEY

Taranaki Daily News, Volume LII, Issue 203, 1 October 1909, Page 3

PLENTY OF LOAN MONEY

FOR DEVELOPING THE COUNTRY. LOW RATE OF INTEREST. THE PREMIER'S ARRANGEMENTS. By Telegraph.—Press Association. Auckland, Thursday. "In London," said the Premier, "I obtained a million of money and had it sent out to New Zealand; £500,000 of this amount is for the Advances to Settlers Department and £500,000 for the Public Works. This money was obtained without the assistance of th° Government from a bank in London, arid i am very glad toNbe able to say that our financial position there stands as strong as ever. I also laid the basis for obtaining in London all the moneys required by local bodies in New Zealand at the rate of 3% per cent. These suras, however, will only be obtainable in sums of £IOO,OOO and over, and for that reason legislation of a special nature will be required. Such legislation will be covered in the proposals which I intend to submit to Parliament during the coming session.

It will enable the grouping of local | and public bodies' requirements so as to have loans for each included in one big sum, which can be floated on the London market at the rate I have mentioned. When this is made possible by legislation we will have no difficulty in obtaining all the money we may require at a low rate of interest in the Old Country. Tf the existing legislation had permitt. d the grouping into amount? of '.'100.000 or more, I could have obtained while in London Jtnother £500,000 o r a million, and sent it out at once.

As soon as Parliament meets arrangements will be made to get the necessary legislation through. I want to make it clear, however, that public bodies wili not be encouraged to go in for wholesale li: "vowing. Where money is obtained it must be for legitimate purposes. It will be necessary for this to ne thoroughly understood if my proposals are to be satisfactorily arranged and the work carried out from year to year as circumstances require?"