DEAR MONEY.

Taranaki Daily News, Volume LV, Issue 215, 1 April 1913, Page 8

DEAR MONEY.

STATEMENT 11V TIO\ ..MR. ERASER. Auckland. Monday. The ■Acling-'Minister of Finance (the (Jon. W. Fraser). who returned 10-night, informed a newspaper representative thai, he lr.d been much impressed by (he fact that a number of nations intended shortly to borrow lan>o sums of money from the London market. "Money is going to be dear for a long time "'said Mr. Fraser. "and I doubt whether we will ever.be able to borrow at those rates of interest which have ruled in the past." Mr. Fraser went on to say that, the present financial position of New Zealand was good. Revenue was coming in satisfactorily, and prices for all produce was high.' '•The great d'ffieuliy of '.!.'' present I !i>v"r>ii)rnl," Mr. Fras"r ".liil. -is the ac-mirim; < f sail":.'ient loan r.-om-v wilh which to cave out nece-sap- works. ±\H'h •■•- the. rnakliiu' of back-blocks roads, bridges and railways. Previous to on:- tnki;"; ~{l'i'-■ ih-iv. had beni giv/en in grants -SliTo (!'> i. and "h"n we look charee we found on!>- -£17.001) in the Treasury' to carp.- (.;>( Mi» works. What U Ihe i.osilion';' The only course to be adoid'cd is to make gp'iits for onlr (lie most lirgent work- until we can see /our way char to borrowing sull'icient inonev to e-ivrv oat others. The position would luw hcci. i> yre,-' .7 ■.-,! h dtcr." con(iiiii"rl the Minister, "if th:> enrrenl rates of interest iv" ! 'i' not so high. The pre-eut Administration had not been able to borrow from the Post Office Savings Rank moneys wiihin £1,000.000 of what was borrowed previously. Naturally people would not leave their money in the savings bank at I! to S'/o l>er cent .when they could get from li to 8 pcy cent, on 'mortgages elsewhere, and the Government lias been placed in the position of having; to borrow' from A to pay off B." Mt. Fraser went on. "Money was borrowed previous to our taking office on short debentures.' Next year the 4 1 /-. million loan falls due. ft may or may not be renewed. If it is not the Government is faced with- the task of having to float a large loan, and the main object will have to lie to make it as long as possible. T hope, however," concluded the Minister, "that, with the termination of the Balkan war matters will improve, although as far as we can see at present there is going to be an abnormal demand on the Home money lenders."