The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. FRIDAY, OCTOBER 17, 1884.

Thames Star, Volume XV, Issue 4921, 17 October 1884, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. FRIDAY, OCTOBER 17, 1884.

Colonial borrowing has, we fear, been made too great a bugbear of, and the arguments •' forced into the service " by opponents to it have been of a most hollow nature; the want of their substantiality must have atruck anyone having even a somewhat hazy notion of finance. Many and strong objections have been made to any increase of the colonial debt, and it has been lugubriously pointed out that the colony's liability is greater than it can bear. This, of course is calumny. It has even been asserted that debts hare been incurred beyond the Country's mean?, and that New Zealand, in seeking fresh loans, is infringing the rules of legitimate borrowing. All this is very absurd, and must display itself as so to anyone inclined to look carefully into our circumstances. The somewhat abstruse question of borrowing has puzzled many Governments, financiers, and others affected; doubtless, from time immemorial; and so long as the present system of currency obtains, thare is every probability that it will continue to do so. It is a very short sighted policy on the part of any Government or party to interrupt the procsss of legitimate borrowing, that is to say, borrowing f r reproductive works, or for the purpose of a country's development. Every pound expended in such a direction m.ans advancing colonial interests, not on.lv deriving benefits arising from the expenditure of the nonney, but directing the attention of the lenders to our shores, causing further expenditure, extending business relations, and- bringing into prominence our many productive qualities. The natural advantages New Zealand has been gifted with, cannot find a better introduction to the world's emporium than by making those who have the power develop them. It must be recognised as a fact that Home capitalists are not likely to advance their money to a colony, or indulge in speculations within ifc, without takiog some interest in its progress; and it csrtaialy seems natural that where the investor has his capital placed be will certainly endeavor to con* centrate his interests. It is, of. coursa, possible that the confidence of lenders might be abused, and borrowers may be indiscreet; yet, at the same time, what may be termed too much caution, with a superabundance of carefulness, is capable of stultifying the work of colonial pro gression, and preventing this colony maintaining its place in a race with its near relations. We are afraid that the squeamishness of uninformed—though Well-intentioned — members will tend to prore a rail in the fenca likely to bar the colony's advancement, owing to the fear that the debt incurred on loan account will be too heavy to meet. It seems to be entirely forgotten that all the lmrey borrowed means development, and tha development of this rich young colony means a provision, for the payment of sums advanced. While not for a moment Hdvocttjog iodiicrimimte borrowing, wo

must certainly pronounce an opinioa in favor of utilizing idle capital where reprodue ion presents itself.