Wairarapa Daily Times. [ESTABLISHED 1878.] WEDNESDAY, MARCH 7, 1894. CHEAP MONEY.

Wairarapa Daily Times, 7 March 1894, Page 2

Wairarapa Daily Times. [ESTABLISHED 1878.] WEDNESDAY, MARCH 7, 1894. CHEAP MONEY.

fc'oii many years past a well known company, with agencies throughout the colony, has endeavoured to secure cheap money for farmers on preoieely the lines which Mr Seddon proposes to take up. This company borrowed money in London at i per cent, On th« seourity of New Zealnnd mortgages. giving a guarantee to the lenders for interest arid prinoiple. In. making advanoes it selected first-class securities and only lent on a margin of fifty per cent. The experience of Ibis company was that to make this transaction profitable a rate of interest not less than 6J per cent, was essential, In other words, a scheme worked out successfully on these lines requires a margin of 2J per cent. Mr Seddon's proposal is, we understand, based on a margin of about one per cent., and from this point of view jt must prove impracticable. There is another aspect from wbioh the outlook is unsatisfactory. The men who hunger and thirst for oheap money are tbe men ifho possess only second..and third olass securities'. Those who have first class securities can get money reasonably cheap, and are independent of the Government, In this colony a firßt eta Beourity ma) be said to be equivalent to six per cent,, a second olass security to eight per cent,, and a third class seourity to ten percent. No State intervention can liter an economio law of this kind I If the State can procure money for a farmer at five per cent, it must give.a preference to a first class seourity over a second class seourity, and leave third class seonrities out in the oold. The cheap money mast, if it be available, go to the first oWs securities. The men, who are branded on perpetual leaseholds and wbo look with hope to the Btate for, too replenishment of their exhausted resources, can never get a sixpence 'under Mr Seddon's scheme, The, lenders iu London if they discovered that the New Zealand Government were makingadvanoesou either second or third olass securities would button up their pockets at once. Oheap money is only obtainable on certain business conditions which will be dictated not by the Government but by the-money lenders of Great • Britain, If the Government had funds otitis own to lend it might promise oheap money to farmers and fulfil the pledge, bat it cannot promieo the monoy of oertain business men in London who will impoße,— must impose—conditions utterly fatal to the Government project,

Jh Harvey 'means promotion 0 change ;,cpuld, be^joatified 'ground, butjwe have iiptaa yet lieard that iliis is t he' reason ■ iof .what would * appear to be;a senseless offioial freak.

We are very gratified to nbtico that some of the leading licensed victuallers of Mastertbn are' aniioiis:to secure the services of settlers; of high standing for the new licensing committee; that iliey are willing that the traffic i should be ruled hy'men of good reputation andnf 'independent obarncter,' We have had within the last few .days satisfactory evidenoe of an intention on the; part of Hcehsed'yiotnallors' themselves to reform the traffio as;far as tbis.district is concerned and it' is only right that praiseworthy condupt of this kind-should be recognised and encouraged. - .

Mb, W. Lowes took us to task yesterday for misrepresenting the finanoial relations between the/Town Lands Trust and the Park Trust, and kindly gave us what he considered to be the correot amounts, We fear, however, that he will have to add up his figures again, N for he makes some otrange blunders. He affirms that a special 'subsidy to the Park:wasi>Hs,not£7s as stated by us, We have verified our statement and find it to be correct. He_also declares that the average annual grant to the Park Trust has. been £6O, but we make it only Mi, We did notlattaobthis correotion to Mr Lowes' {letter, because we.were waiting for &'statement from the Secretary of tile Park Trust, which, is since available, and which confirms our view. \Ve shall be happy to place this statement at the service of Mr Lowes if he desires to ascertain acou* rate pnrtioularson tueVject,