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Taranaki Daily News, 10 November 1915, Page 4

THE PUBLIC WORKS LOAM'. Those who find time to study financial matters as affecting the Dominion wert full of confidence that the two million Public Works loan would be over-sub-scribed in New Zealand. The result has amply justified this opinion ( and the 'Finance Minister is to be congratulated on the success which has attended the scheme. Never has the country been in a more prosperous and financial canditon than is the, case at present, and the generous response to the invitation to subscribe to this loan will certainly tend to enhance New Zealand's standing in the eyes of the Home financiers. The step was well timed and based on excellent grounds, so that the reply of the public is all the more gratifying as will be seen from the following summary of the position:— '£ Subscriptions received 3,374,745 further subscriptions (estimated) 100,000 Conversions 469,850 Further conversions (estimated) 100,000 Total '£4,044,695 (When it is considered that the raising of this loan was a purely business transaction, devoid of all appeal to patriotism, there is abundant justification for pride at the action of the people of the Dominion in providing the necessary funds for public works at a time when it would have been impolitic and unwise to have even entertained the idea of obtaining the money in London. A pleasing feature of the transaction is the indication it affords of the existence in the Dominion of a number of people having considerable sums of money to invest, while the transfers from the Post Office Savings Bank show that the thrifty can also become investors if sufficient • inducement be offered. As the loan was limited to two millions, and over four millions will probably be available, the question arises as to what will be done with the surplus. This, of course, has not yet been decided, but, if possible, it would seem to be good business to allow the half-million or so offered for conversion by holders of debentures falling due before the end of 1010, to be used so as to relieve the Government to that extent from having to borrow, and the offers might be kept open till the necessary legislation is passed. Investors had the option of subscribing for five years or a multiple of that period, up to twenty-five, and it is for the Comptroller and Auditor-General to decide the allotment. It will not be surprising if he favors the longer periods. The Premier has stated that the two millions is to cover ft longer period of works than twelve months. - In view of the large excess of loan subscriptions offered over and above requirements, and the urgent need of many public works for developing the country, it would seem advisable to review this decision, and ■rely on an equally generous response to a further loan. There is now sufficient evidence of the disposition of the people to assist the Government in its Public Works policy, and provided due care and economy is practiced by the Government, there is no reason to doubt that the required financial needs will be met as occasion demands. The flotation of the loan reflects great credit on all concerned.