COLONIAL LOANS.

Temuka Leader, Issue 1792, 20 September 1888, Page 4

COLONIAL LOANS.

Wellington. September 17.

Mr Westgarth, head of a London financial firm, who is at present making a tour of the colony, left for the south this afternoon He had a long interview to-day with the Premier. One of the objects of Mr Westgarth's visit is to make proposals to the colonial Government for the placing of their loans on a more satisfactory basis than at present exists, and he has submitted written proposals on the subject to the Treasurer of each culony as he has gone along. His main idea is one for the general consolidation of the loaus of all the colonies in three per cent stocks, on the joint and several responsibility of the different Governments, instead of the varying rates on debentures now issued, but in default of such a complete arrangement as this, he suggests that all the colonies should agree to issue only 3 per cent loans, each remaining separately answerable for only its own debt. The adoption of the latter idea would, he thinks, tend to make the public at Home feel that complete union is not far off. Another advantage would be that the conversion of our outstanding debt to 3 per cent would bring in an enormous profit, if it were gone about in the moßt favorable way. Mr Westgarth has also made a separate proposal to Sir Harry Atkinson that this col ny should follow the example of Queensland in not allowing any Municipal or Harbor loans to be raised directly upon the market, but that it should make those bodies negotiate such matters with the Government alone. The effect of that

would, he considers, be wonderfully advantageous to the credit of the colony, and reduce the cost of loans.

MR WESTGARTH AT CHRIST- , CHURCH.

Mr Westgarth, the great authority on the financial matters of Australia, paid Christchurch a visit yesterday, arriving at Lyttelton by th 6 "Wairarapa. His stay was but a brief one, as he leaves by the express for the South this morning to rejoin the Wairarapa, by which vessel he goes to Melbourne. At Warner's Hotel, yesterday morning, he was waited upon by a representative of this journal, with whom he hai a few minutes' conversation in relation to his proposal to bring Colonial stocks to a uniform standard of interest, and to get the Australian Colonies to combine their several loans. He remarked that his views bad been given to a reporter in Wellington, and that they had been telegraphed to the papers here. He said he had little to add to what had appeared, except to say that many people in the Old Country would gladly avail themselves of the opening Mr Goschen's proposals had made for the investment of trust moneys in Colonial debentures. He had strongly recommended the Premier, Sir Harry Atkinson, to re-arrange the Harbor and Municipal Loaas of iNew Zealand so as to make them into New Zealand stock, and in the re-arrangement of these and the general stocks to have one uniform percentage of interest, viz., 3 per cent. The best way to bring about the state of things that he (Mr Westgarth) desired was for all the Australian Colonies to confederate and issue 3 per cent stock, as is done in the Dominion of Canada. WHAT OTHEE PREMLEBS THINK. Sir Henry Parkes, of JS T ew South Wales, had listened to his proposals, but had shrugged his shoulders, and said that the irritation caused by the system of levying duties at the borders of the Colony prevented any likelihood of the required federation taking place. Mr M'llwraith, of Queensland, had coincided with his (Mr Weatgarth's) views, and said that all that was needed was to get &ir Henry Parkes to agree, when the Colonies would federate, and follow the example of the Dominion. The next best thing to this, as suggested by Mr M'llwraith, would be to establish a financial federation of the Australian Colonies, and under that to issue debentures for one uniform loan, for the payment of which they would all be liable. Mr Westgarth considered this to be a very good idea, and had repeated it to Sir Henry Parkes, whom he had twice interviewed. In case there would be difficulty or delay in carrying out this plan, then another way would be for all the Colonies to issue stock, as much as possible of the same kind, tach Colony, however, being response for its own debentures. It would not matter whether there was only one agent in England, or more than one. i he fact that some negotiated through the Bank of England, and others through the Westminster Bank, would not affect the stocks. COMPAEATIVE VALUES. If they were perfectly uniform in all respects—that is, as to rate of interest, length of currency, etc.—this would go far to increase the value of the stocks. Mr Westgarth said that he had drawn up a table showing what would be the prices or values of the various stocks, under five different heads, which he would call A, B, C, D, and E. The first, A, would represent "the values if the colonies made their stocks 3 per cents., but without concert; B would represent the values if the stocks were uniformly 3 per cents., but without any confederation of the colonies; C would represent the value of 3 per cents, if there were financial federation alone; D would represent the values if there were complete union of the Australasian colonies; and E would represent their values after the lapse of two or three years, when the public had gained full knowledge of, and felt confidence in, the stock. The following was the table as nearly as he could recollect it: — A B C D E New South Wales 90 P2 94 96 100 Victoria 90 92 U 96 luO South A-i«tn.lia ... 87 90 94 96 100 r»Bm-ni.i ... 87 88£ 94 93 100 New Zealand ... 80 85 94 96 100 ADVANTAGE OP THE CONVERSION. Prom the present holders of the Colonial stock he did not think there would be any objection to this conversion, as they would prefer a large capital value to a large interest; while on the other hand the colonies would save largely iu the annual amount of interest they would be called upon to pay. COMPLETE FEDERATION. He could not see why complete political federation of the Australasian colonies should not be effected at once. To his mind the differences in the tariffs made little or no difficulty; and as to the greater question of Imperial Federation the tariffs presented no difficulty at all. What was wanted was that the whole force of the) Empire should be concentrated in one body, in which each of the colonies should be represented by one er two men, as might be agreed upon. In this body, of course, Canada, the Chinese Colonies, and India should be

represented. Some of the great Princes of the last-named country might even be allowed to sit in the Heuse of Lords.—Lyttelton Times, September 19.