FOUR MILLION LOAN

Wairarapa Age, Volume XXXII, Issue 10672, 29 June 1912, Page 5

FOUR MILLION LOAN

DISCUSSED IN THE HOUSE. , CHARGE OF SECRECY REFUTED i (By Telegraph—Press Association.") WELLINGTON, Last Night. < During the jde.hate . -uii>. the Imprest Supply Bill in the House of Repivsentatdves this afternoon, Mr. W. F. { £Masse.y. asked 'Whether the Minister of ! Finance ..would givo any information in. connection : with the £4,000.,009 loan. '• The Hon. A. M. Myers (Minister' df Finance;.)- in, replying, said - lie was not (surprised at Mr Maesey's request.' He had foe-en:. pbrambulathig through' the country, endeavouring to educate.' the, people into-the idea •that ' the\ . Government' was practising -se'ciracy iabouiu .financial matters. Tlie Government liad nothing to hide. • He asked the Reform Patty to remove all party .feeling from finlariciailv matters, and treat •tiliean in" the same way as defence matters 'had been treated. He informed Mr Massed that the prospectus ■waty' never issued at tliis end.' One •'litimfcr&d • and: tjv.en.'by ••log.'bles liad passed Ibetweaa dtero nind'. London since November.last. No member of the Cabinet would allow a- chargo of secrecy to be made against them. They ' in-tended to take the House into their confidence. It was. limpossible to give detaiiliS df the loans ib-etfore they/ were " raised. The ..present loan was neceseary to meet loans 'maturing, and ex- • • p.laiditni'res authorised" by Parliimeait frc-mi, 'November laisb till April let. A yum cf £2,2fi0,500 an (loans had matured. One dnd a half million was ' due on April Ist. The balance was .for. advanocii to settlers, '.advances to workers, navafl defence,.' public works, a'nd the Land Battlement Act. ' : The loan; was raised afc' : 99,. jbliej'rcndorwrHr inig ; c6stiin:g .1 ,peir cent.;• The. market at tiur time the loan was- raised; was;: riot favourable for issuing the -stock of a loani for'a'long period. Any Finn i.ce Minister ■ WQuld b&a*e done* •just-" 5 •what h© had done. The loan 1 -would cost £3 .12e» for/interest, independent of discount. ' , v;-' i-V - v'l a®r'.#ass©yvemd- tie'Minkler of Fi-'.j nance had given. nq .information. He; ' resented the inference that lie was actuated fay ' a party f spirit; in asking fcr - information.;• He would ahvay-s J endeavour to ; get all the information ••• What lie" and tliei people of the country entitled to. v In -his .oponion ,; a 4 peir cent, long-dated loan would; J have ibeen more economical than a 'short <one. Tie Hon. Mr Myers, he said, must be in possession of tho ' prospectus. v It had. 'been, published in I all tho English papers, amd the in-.' ', favmatio'n, supplied to the peopfo of •England should be available for,;the. people of tikis country, , who; had .to J find, the ;mbii'pj*;;: ale if. any' 'coacfiis/sibnis liad (been given to investors for conversion. 'The .Hon, ,M.r .Myers.: '.'No.".v: , .■ : . Mr', Masseur ;,tihat -makeis -it-; nvoree." In liis opinion, the loan •would cost 5 .per oent..-'lf' the'' : Miiniis- 'i <cer 'had gone on to tihfir otiarkefc three .mouths lago 'with ai long-dated loan; . it coulds liave been raised, : v-: ; -■ ' Tho: Prime Minister said the best . it)haifc could. be done had .been done. One' would, suppose they .had done .something . careSiessly or- stuipidly. . . ff T 1

UliCil il\A V IV. tr UVIJI .JJUJIUUiIi; \vu&! reliable. ' They had. nothing to hide, ■and- -would . give all the .information when .they (had c.t. There was no secrecy. -' .. w Mr Allen said there was too much isewecy after lilie loa'ns had been floated. He asked under what au.tihcirity any mon&y had .been raised Ifoiv naval defence. TBiis money' was provided for im- the fiye million' loan ;clf k&b year. ... ' • ~ Sir; Joseph . Ward said the Governmien; could.,;not .raise .a 4 per ' cent, loan ii?;': London, withdut underwriting. He did 'rnot, Jbelieve; <th© Finance - Minister, 'could have got o' long-dated 4 per cent, loan, if he! had tried. It' would •have -cost more in the l6ng run if he (had ibee.li. .successful. ■ Mf ,W. .iFnasier said that elior Mated debentures .were (ruinous to the coun-

try, and if car-2. vqs not isken invest-' ors-woxild demand'them in iall cases. Mr A. L. Berdman: ©aid the financial methods. of the Government were desperate. The last lean was probably imperative, and",it should not have ■been. - v " •Mr T. M. Wfi'fcrd held, with previous epeakorts, that the question of ioan-n'aising should not be dealt with fern a pairty standpoint. lif the Government had . -been advised that a shpirit-dalted. loan was the best .under 'blie .circumstances, the Government 'was qiuite right iti> following that course. The Minister should have the loyal support- of the House. . The House adjourned at 5.30 p.m. • -On the House resuming at 7.30 p.ni;, Sir Joseph Ward continued the. debate, and, referred members to" the •Parliamentary ; papers iia* canneoHoa with (renewals, which, he.said, gave facts. He mlbcirs were either .mii&leading . them-; ' 4 s.fives, tor .had not a thorough grasp ■ Tif ' the ■ situation when they gave nit-' torance to some of -the statementsre--cKntly expressed. He <said thnt had his .party 'had a decent hind "it, he prc>bahiy--..would; have 'anthemed- the ,loaii""of (four m-51-liaus..;He <ba4 arranged for timinorairy : advances for '.hi® .'ifiioKissor' ! :in office—one. million' fin England,'; and .cme .miilion. frpm the Bank iat New Zealand. This, with 'the, surplus,' left 2,,500,0d0 to: ca>rry on /s»lh<? work, of the cTOtttrv,. . | -Mr::; ( M-assey, fiadd that'-if his party j had chosen to stick lip the Imprest h:.",.cpini6ii, a majority in the. House•tov fit-npC'it., them-; '-but did net do'so. 'He had never cace disoufised 'financial matters for the purpose of gaining' any pfl'fry advantage!.: Tli3 Opposition. (had saved the country ,thoxnsatods ' and thousands.' of pounds-' >by .their criticism,/and by 'liqepnig tjbe Government .up-.to th 4 .niaa'k. Financial 'people at Home were reaping a -.rich out of the taiista'kes made here. . He quite uiideristcod that the country icoukl not ,go: on withoa-fc iboiv "rowing. ■-■■•' : : ■ Mr Fraser advocated .the setting: bp o;f ,e coramiittoe to lexaimine into every detail of "every loan. - It should • look .into the whole accounts of the country. , - Mr - Myers, in>.' .replying, said th& wouid; welcome the fullest criticism of'aß; matter®. •'. With' regard to- the foui' million 10an,.. lie ; stated rthat at- had,bee at 4 per cent, ifor.thiirty years at par,, it would; work out at £4 2s '