OUR FINANCES

Taranaki Daily News, Volume LVI, Issue 3, 4 June 1913, Page 5

OUR FINANCES

MR. ALLEN'S EXPLANATION.

THE MARKET EASIER,

Per Press Association,

Auckland, Last Night.

Discussing the financial operations, Mr. Allen, who returned from England to-day, remarked that the three million loan was raised at a very bad time. He had no hesitation in saying that nobody and no country could have done any better at that moment. The money market was not particularly in a disturbed state, but there was at the time a tremendous demand for jnoney all over the world. The Balkan trouble had undoubtedly had an effect on. the money market, but not to the extent that .people believed. The £3,000,000 loan was raised for 4 per cent at 98, with a currency of 30 years—so if we want it. The whole loan can, therefore, \ be redeemed by the payment of £4 5s 6d a year in 50 years." "The amount available for public works, is, I believe, £1,750,000?" queried the pressman. The Minister replied: "I think it is about £1,250,000, but more money has been raised since the £3,000,000 loan at a better rate. I have come back with definite proposals also to meet two large loans which fall due next year. I refer to the 4y 2 million loan raisied last year, and to the other loan maturing next year, of about 3% millions. Both of these loans are 3% per cent, loans. Those are the only two loans which we need worry about. All the others coming due within the next two years are .4 per cent, loans, I am not troubling abffut them, at all. I will admit that the two bigger ones mentioned may give some little concern', but that concern will disappear if New Zealand lives within its means and does not become extravagant—in fact, keeps up its reputation on the London money market. The outlook generally is now very good indeed. I think the change of Government has made it brighter than ever." Speaking of the money available for public works, Mr. Allen declared that there would be a substantial amount this year, sufficient to carry,on public works at as rapid a rate as that at which we are justified in earrving them. "But, if you ask," he said, "if there is plenty of money for public works I must reply that there is not plenty to play with."