The Temuka Leader. TUESDAY, JANUARY 10, 1888. A CONTRAST.

Temuka Leader, Issue 1684, 10 January 1888, Page 2

The Temuka Leader. TUESDAY, JANUARY 10, 1888. A CONTRAST.

A short ago New Zealand ex* perienced great difficulty in raising a loan in the English money market. The first attempt to float it was a failure, and it had to be withdrawn. After waiting several months it was again placed on the market, and taken up at a discount of about 2| per cent. It was said then that only for the Bank of England coming to the assistance of the colony the loan would have been a failure, but even as it was it could not be called a success, as it only floated at about £97 10s. Now let us see what this means. It means that for every sovereign we borrowed in England at that time we got only about 19s 6d, and thus lost sixpence in the £, or in all about £40,000. Let it be remembered that although we never got this money we are. charged with it, and we must pay interest on this £40,000 just as if we had got it. This certainly is a very serious matter, but our legislators treat it in such a cavalier: sort of way that the public never get a glimpse at the truth of it. This, indicates the position New Zealand occupies in the financial world. It shows that she has Very nearly reached the end of her tether, although her present rulers intend to saddle her with millions more, if they can find any One to lend it to them. That such a state of things should exist is enough to make people who have faith in this colony feel much disconcerted, especially when they s4e the rush that is now made for the Victorian loan. This loan, we are told, has already been taken up at 104, although it has not been fairly placed on the market at all yet, and those who have bought the debentures at 104 a few days ago are now selling them at a premium. This means that for every £IOO Victoria borrows she gets £lo4—brj in- other words, she gets a bonus of 4 per cent, from those who lend her money. Thus for every million she borrows she gets £40,000. for nothing, while for every million New Zealand, borrows at the same rate as the last loan she loses £2s,ooo—and, what is worse, she must pay interest on this £25,000 which she never got. If there is one thing better calculated than another to taka the pride out a New Zealander it is this. It is really sad to think that our beautiful colony, which never experienced drought, and which is peculiarly fertile and productive, has been, reduced to her present miserable condition by bad' Government, and, what is worse still, that the very men who have, destroyed her are again in : v - * i,";. v •• • 1 •' power. , Freetraders now may ask themselves, Vftiy is it - tiiat Wictoria can borrow money in England so much more advantageously than New Zealand. can? How is it that} the English moneylender has not lost all confidence in a colony that resorts to the ruinous policy of Protection ? Is not this most extraordinary F Freetraders would make us believe that the very moment we adopted a policy of Protection we should, literally speaking, be boycotted in England—but here is their answer : The English moneylender has ten times more confidence in Victoria than they have in New Zealand, because they know well the former will be. able'.to pay, while they are doubtful about the latter. Doubtless the startling facts that are obtruding themselves on attention will soon bring New Zealanders to see the fallacy of the policy which this colony has hitherto pursued.