The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, OCTOBER 18, 1884.

Thames Star, Volume XV, Issue 4922, 18 October 1884, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, OCTOBER 18, 1884.

That all-absorbing question, colonial borrowiog, w«s the subject of an article in oar last issue, and its importance is a sufficient excuse for us in endeavouring to remove the scales from the eyes of those inclined to take a gloomy view of the expected proposal by the Colonial Treasurer to borrow several millions from Home capitalists. There is an enormous amount of capital cow lying idle and seeking investment in the Home money market, and the rate of interest required for its use is at such a figure that very remunerative works might be undertaken by its aid, and a handsome return be yielded to the colony after satisfying the lender. We would not advocate * large borrowing, or any for works not reproductive, but there are so many things absolutely necessary to be done in thia colony—rand they cannot be done without adventitious aid—that we deem any government not only justified in . making, but affirm that they are in duty bound to make a legitimate use of all the opportunities given them in advancing the colony and its interests. The con* 'struction of railways, the formation of harbors, the encouragement of settlements on the land belonging to the country, and the development of the colony's resources, natural and artificial, are all ponions of a bridge leading to its prosperity—the keystone of that bridge is capital, and if we do not posieii

it, and those who do »re willing to accept our securities and advance their money on them, there is every reason existent why we should avail ourselves of their desire to invest tbejr monetary surplusage The almost inexhaustible character o^ this country, in the matter of productive power, should be a very strong argument in favor of a little speculative borrowing, j but we are inclined to the belief that the securities available are more than " tenfold sufficient "to cover our indebtedness, and if an increase in the satisfactory results j more than is likely to arise from further expenditure, looms in the distance, by all means, say we, give every opportunity to the production of so favorable a result. It must be fully admitted that a speculative policy on the party of any Government is very dangerous, aDd we would not counsel following such a course, but whore a colony has property of an ascertained, value, and it can be safely said in addition that many sources of its natural wealth are almost unknown, it would appear to be rational that, not only borrowers would not be foolish enough to apply to'capitalists without a hope of obtaining their requests.or being unabletooffer security for their loan, but it would be beyond the bounds of even absurdity, to imagine that the possessors of the money would advance without being well secured. We hope that any proposals made by the present Ministry—they will not likely be made without very mature deliberation—in loan matters will be treated with careful consideration, and that no claptrap given vent to by half informed or interested politicians will io any way interfere with the colony's progress, through any obstacles being thrown in the way of the borrowing that may be considered necessary to develop the resources of New Zealand.