LOAN PROSPECTS.
MR. MASSEY’S INQUIRIES. Mr. Massey will reach London about the end of this week, and will proceed at once to inquire regarding the possibility of raising a loan for public works, soldier settlement, and other purposes. The sum he mentioned during the recent session of Parliament was £5,000,0b0, and his colleagues in New Zealand would be very much relieved to learn that he had been able to raise the sum. The present position is that authorisations for hydroelectric developments, railway construction, and other public works, as well as for soldier settlement, are much in excess of the funds available. The Consolidated Fund has already made heavy transfers to the Public Works Fund, and very little more can be done at present in this direction.
The raising of «a substantial loan in London during the next month or two would have several .very important effects. It would strengthen the Consolidated Fund by making possible the repayment of money transferred to the Public Works Fund. It would make easier the handling of the unemployment problem, since the Government would be able to proceed confidently with some of the large works that are already in hand or have been planned. It would also enable the Lands Department to give increased support to the soldier settlement scheme. New Zealand’s credit in London undoubtedly is good. The proved ability of the Dominion to raise very large sums of money within its own borders has drawn favorable comment from London financiers, and the fact that New South Wales has been able recently to borrow several millions in London suggests that the money market may not look unfavorably on a New Zealand loan. But the huge funding operation that has been taken in hand by the British Government may be an obstacle in the way. A recent London cablegram stated that the Imperial authorities were delaying the issue of colonial pending the completion of this operation. which involves the funding of about £600,000,000 of floating debt.—
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Taranaki Daily News, 21 May 1921, Page 10
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331LOAN PROSPECTS. Taranaki Daily News, 21 May 1921, Page 10
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