RAISING LOCAL LOANS.

Taranaki Daily News, 21 October 1921, Page 4

RAISING LOCAL LOANS.

According to the latest review of the state of the London money market, as cabled on Saturday, there is a likelihood of numerous new issues of colonial loans, “end all seem likely to be absorbed,” the position and prospects of the market being favorable. As New Zealand appears to stand high in the estimation of the Home money lenders, it is quite possible that loans for reproductive purposes in the Dominion can be obtained, on reasonable terms, but that does not mean that every local body should be allowed to exploit, the market for its financial requirements, for such a course would inevitably have an adverse effect. If New Zealand credit is to be upheld in London there must be discrimination used as regards the raising of loans, and for that .reason the suggestion made by Mr. Gunson, for the appointment of a board of experts to review all loan proposals, is well worthy of attention. The Government is not inclined to give its guarantee to all loans, so that some system is required whereby an equivalent will be provided. There exists a nominal control by the Government over all local bodies’ loans, but that is proving rather an evil than a blessing, although the main object was to prevent forcing up the rate of interest. As small loans are always difficult to float in London, the question is whether it would not be better to consolidate cerain loans under Government authority, by a board or otherwise—a system that has proved a success in Britain. The matter is one that is worthy of mature consideration, and it would certainly be in the best interests of the Dominion to have a reliable and recognised system as to loan applications that : would be satisfactory to the London market.