DEAR MONEY.

Taranaki Daily News, Volume LV, Issue 118, 5 October 1912, Page 4

DEAR MONEY.

With some people money is always dear in the < sense of affectionate attachment. What is more of the -nature of news is that the Treasurers of the various Australian States are finding it necessary to tell; the" public that the money market is very tight just now, and that until money is cheaper some;delay is inevitable in ■ connection with public works. The Miaister for Works of New South Wales (Mr. Griffith) has been preparing people for disappointment in regard to the fulfilment of the works policy, which is the heaviest in the history of the State. In doing so the Minister has said: "We,will have to hold up some ,railway works that we had intended to start at once. Of late we have been getting all our loans locally, and that is a good policy so long as it does nofc denude the local market. But we have been sending too much ..pf our money away. If wc bought £IOO,OOO worth of rails in England or America, and borrowed the money to pay for them locally, that would mean exporting our capital. That policy has gone far enough, and. we must mow begin to import some capital until matters have adjusted themselves." For an illustration the Minister referred to New Zealand thus: "New Zealand recently floated a loan,, and it went off so badly that it will cost her 5 per cent." He mentioned further that the Queensland Government had found it so liard to get money that it had been compelled to close down some of its railway construction works. The Premier of West Australia has felt obliged to tell a' dfeputation of farmers that a desired and desirable extension of a railway into the eastern wheat country could not reasonably be taken in hand for several years. During the past ten months the Government had borrowed ten millions and had spent the money. The market was very tight, and the bank rate was 4 per cent. He was not -hopeful of getting money at a reasonable rate.