FOUR MILLION LOAN

Taranaki Daily News, Volume LIV, Issue 308, 25 June 1912, Page 3

FOUR MILLION LOAN

"DID THE VERY BEST" STATEMENT BY PRIME MINISTER. "I will give the whole particulars of the four million loan when the House meets," said the Prime Minister (Hon. T. Mackenzie) to a Wellington Times representative last week. '"We quite well that a short-dated loan will he higher than a long-dated loan, because of the cost of flotation. This and other points were all carefully considered before the loan was arranged for. A business man would not think of floating a loan for a long period when the market is high, and the Government surely should possess as much discrimination as private individuals in their loan transactions. "The question is: Would our critics have acted differently ?- If so, will they be good enough to specify wherein they could have improved oa what has been done, and so come down from vague generalities. ..■"•I am not going to enter into a long controversy on the subject. The very best has been done on the advice of those who are expected to 'be authorities and who are our responsible advisers. Our own views on the matter will also be taken into account. The money, as the public knows, is chiefly to meet loans falling due, and also for loans already authorised by Parliament. Will the people of New Zealand say we should not have raised the loan ? The question that had to be considered was whether, money being high, we should raise it for a short period, which would relatively cost more through flotation charges, or raise it for a long period when money is high and have a lessened relative flotation charge over the long period. Everyone knows, or at least should know, that it is not wise to. borrow for a'long period when money is 'high, because that high ■rate would largely be the basis for the interest on the loan fo'r the long period. However, it would matter not which course of action we took as far as our critic 9 are concerned. We would still come w for the same censure and abuse."