PAYING OUR WAY.

Taranaki Daily News, 25 April 1916, Page 2

PAYING OUR WAY.

IX WAR FINANCE. MR. I-I. BEAUCHAMP AGAINST DOMINION LOAN. A view emphatically opposed to New Zealand raising internally loans for financing its share of the cost of war was expressed by Mr. Harold Beaucliamp, chairman of directors of the Bank of New Zealand, who is on a visit to Auckland. Mr. Beauehamp'a views on the subject of Dominion finance carry considerable weight, and are additionally interesting in the light of Sir Joseph Ward's pronouncement that no war would be raised at more than 4y 2 per cent. "Personally, I am of opinion that it would be inadvisable to raise a large loan for war purposes in the 'Dominion," declared Mr. Beaucliamp, "and I think we should confine our efforts for the present to the raising of moderate sums for the carrying on of public works and avail ourselves of the offer made to us ,111 the early part of the war by the Imperial Government to provide such funds as are necessary foi the carrying on of our share of the war.

INTEREST WOULD RISE.

_ "If, for example, what one would consider the moderate sum of five million pounds were raised in this Dominion for a war loan it would have an immediate effect on the money market, and would probably cause an increase in the rate of interest by a half or one per cent., which is not in the interests of the trading community nor of the Government of the Dominion at the present time. "As the last banking returns show" continued Mr. Beaucliamp, "the Government is in an exceedingly strong position, ■but, as Sir Joseph Ward has already pointed out, every shilling will be required in the near future. Our safety And comfort lie in • maintaining the strong position we occupy to-day.'" AUSTRALIA'S EXPERIENCE. ' The pressman asked Mr. Beaucliamp if there were any special circumstances te account for the fact that the issuing of Australia's two big war loans had liad no appreciable effect on smaller financial transactions affecting the farmer and others contributing towards the development of the country (as pointed out by 'Mr. Dennison Miller, governor of the CcmmouNvealt'h Bank, when in Auckland i recently). Mr. Beaucliamp replied that Australia, was carrying on her finances upon a somewhat different basis from New Zealand, inasmuch as the Commonwealth had undertaken the whole of the note issue, and notes had been issued to the extent of over forty million pounds for financial purposes. Against this the Government was holding a certain proportion of gold but many financiers considered that the note issue had to-day assumed such proportions which might give rise to sonic anxiety. "We in this country have, contented ourselves by making'notes legal tender," concluded Mr. Beaucliamp, "but against our issue we have to hold pound for pound <n the shape of gold bullion and Government securities. So that I maintain that the conditions in Australia arc not the same as they are in this Dominion."