THE DOMINION'S FINANCES.

Taranaki Daily News, Volume LVII, Issue 130, 26 October 1914, Page 3

THE DOMINION'S FINANCES.

VEKY SATIS L<VU/rOIIY ARRANGEMENTS. TIIK ADVANCES OFFICIi. | An important statement, in regard to tile finances of l!jc Dominion was made in the House of Representatives last week by iho Minister of Finance (the Hon J. Allen). ■Mr. Al:en, in the first placo, referred to the operations of the State Advance Department. The maximum amount of advancra to workers, which had stood at £351) since tire outbreak of the war,' had been raised 'to £4OO. He did not 1 know whether it would 'lie possible later : 011 to restore the limit to the sum of £430, at which it fftoid prior to tile I war, 'bin a considerable amount had been j paid out to workers even under the £DoO ! limit. The increase now made would, I lie hoped, do a, great deal to provide work for unemployed carpenters. la regard to loan's to loctil authorities Mr. Allen pointed out that provision had -been made in the Public Works estimates for various £ for £ grants, and unless tile local bodies were enabled to raise the amount, of their share of these items of expenditure, iliey would not be able to avail themselves of the grants. U had therefore ber deduce to make advances io local bodies up to £IOOO. This wag not a large amount, but it would enable the local bodies to avail themselves of nearly all the £ for £ grants on the Estimates. It would probably ha possible Inter on to improve I the amount. Mr Allen said that lie had been in comniun.cation with the Comuiiiv sioner in regard to the loan falling due in December, as well as the loan for the Dominion's current needs, lie was advised tha>L under present conditions it was not at all possible to raise either stock or debenture loans in London. All that could be done w,i R to arrange, for immediate requirements (hroii.<,'h tiie

issue of Treasury bills. He had already, before the war commenced, obtained power to issue Treasury bills in LonJon, and by this means it would be possible lo provide not only for Uio loan falling due in December, but also for the requirements during the year. fir Joseph Ward asked how much bad ■been advanced to workers -under the reduced limit. The £IOOO limit for local 'bodies would be very valuable 'to some local bodies, but to "others it Would be of no use at all.

■ 'Mr Allen: it is better than nothing. Sir Joseph Ward said that the carrying on of local public works was perhaps more important than that of the Public Works Deiparlment. He caked : ho\T much money had been advanced on Treasury bills in London, and what rate of interest was paid. Personally he had never known any difficulty in raising money in London. Mr ..\oa.voiiliy (Ashburton): You have never had a time like this. 'Sir Joi-eph Ward said that his experience was 'ih.it there was no diffieuky in obtain ng money in London so long as the borrower was prepared to nay for it.

Mr. Allen: iW'hat rate would vou eo up to?

.Sir Joseph Ward: I would keep it as low as possible. Jf I were making a statement to the House about it, J. ' should say what I was paying. Mr Alien said that he was very pleased to give tile honourable gentleman all the information available.Last month the amount paid over to borrowers from the Advances to Settlers branch was £IOS,9W). From the Public Debt Sinking Fund branch there was only £O'IGU Under the Advances Office Sinking Fund Account there was paid over £21,230. Th e amount authorised by the Board for the month of September "was £.18,195. With regard to advances to workei >, the amounts paid over with the restriction down to £350 was £30,135, and 'V amount authorised by th e Board was £U,740. Advancet to local bodies had been temporarily ftopped meanwhile, but the amount paid over for the month to j local 'bodies was £26,32.5, under the Ad- : ranees to Local Authorkica Account, under the Oll'ice Sinking Fund Account £2475, and under the Public Debt Extinction Fund Account £2480. The amount of loans authorised during the month was H'.OO. Now he proposed to remove I'.le restriction, and after tli.s date advances would be made to local authorities of up to £IOO3. die hoped if all wen; well to increase ''Jie anio.iut i •still fmther. I 'He had been asked to .make a statement with regard to TiMisury bTs in I Louden. The only advances that -«"Jic I Government had received from London were £400,000, and ihey were for Hie war fund account, under the lAVar Loan Bill. This money had not been secured from speculators. It had been advanced by the Bank of England at a rate of interest that he was not at liberty to disclose at the ipreseii't moment.

Mr .Myers said that in Australia it had been announced that the rate at which money had been obtained was 5y 4 per cent. ih'. Allen (laughingly): I am not going to say that New Zealand is borrowing at 5>,4 per cent, ■because that is not the rate. We ate not paying that price. I am not going to disclose the rate, liecause I am asked by the Imperial authorities to keep it secret, the reasons being that the terms are exceptionally favorable. Those advances, he continued, were Treasury bills for six 'inoiitns. They would be met out of the loan which the Imperial Government were going to raise, for the Imperial Government would raise enough to furnish to Xcw Zealand sufficient to return the advance made by the Bank of England. It was 'highly gratifying to him to be able to report to the House the very satisfactory arrangements that had been made. lie ventured to say no other Dominion had made more satisfactory arrangements. He might even go further than that.