FINANCE.

Taranaki Daily News, 13 July 1921, Page 4

FINANCE.

ACTING-PREMIER’S REVIEW. POSITION QUITE SOUND RESTRICTIONS IN EXPENDITURE. By Telegraph.— Press Assodatioi. Wellington, Last Night. The Acting-Premier issued to-day 8 statement oi the position of the Do minion’s finances on June 9, explaining that its publication had been delayet pending the .£5,000,000 loan negotia. tions in London. The Minister states that while the year’s surplus was £8,591,208, the actual balance to the credit of the Consolidated Fund at the New Zealand Bank on March 31 was £4,475,000. London investments in realisable securities and cash at credit in London amounted, together, excluding a £2,000,000 reserv«j fund, to £2,131,000. That amount in London is less than required, and must be supplemented later. Antecedent tq March 31 the Treasury had invested iq Government securities in New Zealand, under authorising Acts, partly to evP able public works to be carried on and partly in the redemption of loans fall? ing due, the sum of £1,167,000. Thert was also over £BOO,OOO outstanding id London and New Zealand in the hand* of impreatees, practically all of whict, had been expended, leaving a small portion only, which would be recoverable during the two months which have ex« piped since March 31.

The ordinary current expenditure -tag' largely exceeded the revenue, but the Treasury during those two months has paid in New Zealand for interest on New Zealand loans £1,540,000, and haa paid in London for interest on English loans £1,322.000. The Treasury further, in consequence of the extreme difficulty of obtaining loan moneys for capital works, found it necessary since March 31 to invest in authorised Government securities £1,032,000 from the Consolidated Fund credit. Large sums are out in the hands of imprestees, practically all of which has been expended. There are some small credit balances at each of the several capital accounts, but most of them will require to be supplemented at an early date. The balance at the credit of the Consolidated Fund on June 9 is £571,000, to which has to be added £500,000 placed on fixed deposit and maturing at an early date. It must not be supposed that the Dominion’s financial position is not absolutely sound; (there is full provision for the performance of all its annual ■obligations; but it must be clear to every reasonable person that the real strain is in procuring capital moneys for further expenditure on public works. There are still some sources from which very limited funds for those purposes can be obtained within New Zealand. ‘‘The principal object of this statement,” said Sir Francis Bell, “is tv make it clear to the public that there if no possibility of further subvention loan moneys from the Consolidated Fund. So far as it concerns the ordinary accounts of the country and its payment of interest to its creditors anti salaries and wages to its servants, the finances are absolutely sound and assured; but with regard to the provision of capital expenditure on public works, the financial conditions render the procurement of loan moneys in New Zealand exception-* ally difficult.”