EMPIRE UNITY.

Taranaki Daily News, Volume LV, Issue 252, 14 March 1913, Page 4

EMPIRE UNITY.

An interesting proposal was made to the Dominions Royal Commission the other day by Mr. Harold I'eaiiehanip, actingchairman of ihe Jianl; of New Zealand.

"Everyone," he said. "is agreed in principle mi tin* advantages of Imperial cooperation in mailers of common interest, but so far no practical scheme lias been evolved. 11, however.-it is possible to start a practical scheme by which an exiting want could he satisfied, there would very likely follow a great extension of the principle of Imperial co-oper-ation. The problem is not easy of solution. but there is 011 c aspect of it that has hitherto escaped the notice of the dominions Governments and the Governliient of the I niti'd Kingdom. It is a point that might be developed to great advantage, namely, the principle of a joint Imperial guarantee in connection with Joans for defensive purposes and for improved communications (shipping, harbors, cables) between different parts of the Empire ami other matters of Imperial importance. -Ml tlip.se have an intimate bearing upon the protection and development of the tr:ide and commerce of the Empire. I he lull development of our principal harbors, the desirability, if not the neces-it v. tor an absolutely allI'ritish cable route, and the cheapening of cable communication generally are. matters i>i greater importance than they ever were, and Hinds for such enterprises could be procured more cheaply tinder a joint Imperial guarantee than under the sole guarantee of individual partners of an Imperial concern. One step forward in this direction has already been made ill connection with the Pacific cable, and in the case of 0110 of our own important public works, namely, the construction of the Calliope Dock, Auckland, we have an instance of public work that is of Imperial importance, hut which could scarcely have been accomplished without the generous assistance afforded bv the British Admiralty. Tt is true that in this instance work was made possible bv means of a grant in aid, and not bv aii Imperial guarantee, lint the principle of joint expenditure and partnership was established by the Imperial Government. >rom the point of view of the JSritish Government, it can hardly be questioned that a guarantee, with little or no fear of recourse, is in all ways preferable to a direct and immediate payment in aid Interest now payable on the dominions loans is roughly 4>/ ( to 4V, per cent. Thus New Zealand's new 4 per cent, loan ' ust ,>PC » Pl«ml at about 4% per cent.; a rate more advantageous to the Dominion than that at which foreign na . turns in the same stage of development can obtain fumls. owing to the Tmpeal feeling of the London money market. hut much more costly than the rate ich a joint Imperial guarantee would ensure. If loans could be raised at a cheaper rate under a joint guarantee of the Imperial a yd dominions' Governments. the result would be an immediate economy and an obvious service to Imperial organisation. With this object in view ,t is desirable that an Empire Development Hoard should be created whose function would be the examination of schemes brought forward for the purposes stated, such purposes beiniecognised as of Imperial value if approved. Service of loans issued for special worksi duly specified and duly limited p° , I,fi "uni'anteed by the Mother omi n and [Dominion Government Loans under a joint "uarantoe are not Without precedent. There is the case ot the guaranteed Egyptian ,'S per cent. Joan of 1,5,5.). the issue of which was the turning point, m the restoration of Egyptian finance. This lean, issued Government, and secured upon purely Egypt,an revenues, was guaranteed jointly and severally j,v six- Great European I'nwers Tll(1 I)nr . lowing' dominions, working i„ the way .suggested, with t lie support of*an Empire development board, would be able in ordinary times to raise the funds required at. say. V/, ~er cent,, and the advantage would, of course, be the difference between the rate and the 4% per cent, or more which it might have to pay if it attempted to raise money on its own security alone. The borrowing dominion would be primarily responsible lor interest and principle of the loan the guarantee of the Mother Countrv and the other dominions being called upon only in the event of the dominion's default which under cllicient supervision would be most unlikely. Exception mav be taken—indeed, is certain to be taken -•!<> this idea. _ For instance, strong objection was raise,] to Government loans lor the acquisition and greater develonmcnt private landed estate. Sim'ilaily, objection was taken to Government, loans for advances to settlers eii"a"cd in developing the lands of the colony, and to the system of Government loans to local bodies, but to-day there are few, If any, sane business men prepared to advance such criticism. So long as moneys are judiciously borrowed" and loaned for development work of a. truly national character, ail Empire development board of high status would not only add to the stability of securities, but would be an adequate and perhaps

necessary check upon 'wild cat' or unrenunierative scheme* that arc neither in the true interest of the individual country, nor of the Empire as a whole, while at the same time it would have a practical and not purely sentimental lunilin;; influence in so far as the Mother Country and the other Empire are concerned."