THE PUBLIC DEBTS BILL.

Wairarapa Standard, Volume I, Issue 41, 14 October 1867, Page 3

THE PUBLIC DEBTS BILL.

This Bill, which was read a second time on Monday last, makes the Colonial Revenue liable for Provincial debts and enacts that no more Provincial loans shall be negotiated except through the General Government. A remarkable speech was made by Dr Featherston on the occasion which is thus briefly reported in the “ H.Z. Times ”:—

Dr Featherston dissented from the proposals of the Government. He did not object to the consolidation uf the loans when such consolidation was based upon sound principles and he dissented from thr proposals under consideration because they were not so based They tended to benefit the lender not the Colony, and any one Having and knowledge of finance would not have proposed such a measure. There was no moral obligation on the part of the Colony to protect bond-holders They had every opportunity of testing the security offered to them before the debentures were negotiated, and, therefore, the investors entered into the speculation with their eyes open. Therefore, they had no right to the security of the Colon}' for their negotiations. It was unwise on the part of the House to recognise the liability of. The Provincial Loans should he consolidated, and made colonial stock. The lion, gentleman then at some' length criticised the Bill proposed by the Select Committee, and argued that the proposal made therein was anything hut advantageous to the Colony, and that if it were carried out it would be the means of putting £400,000 or more into the hands of bond holders, and that the proposal was little less than a gigantic fraud, which he hoped would not meet with the approval of the House.

Since the above was in type some excitement was caused in Wellington by the action taken in the Legislative Council in the direction recommended by Dr. Featherston. To secure a majority for the Government two members from Otago had to be telegraphed for, and on their arrival, the difficulty was removed, but at the expense of putting in a false position both the ministry, and the Council which would not have occurred had members remained at their posts until the session had terminated. With regard to tha points in dispute we shall observe that the discussion proves the truth of the remark once made by McCullock “ that funding ” like some of the most effective medicines, is a dangerous as well as a powerful resource, and requires to he skillfully administered,” which, if Dr. Featherston’s view he the correct one, has not been the case in the present instance.