SECOND EDITION Wairarapa Daily Times. [Established 1878.] SATURDAY, JULY 28, 1894. CHEAP MONEY.

Wairarapa Daily Times, Volume XV, Issue 4785, 28 July 1894, Page 2

SECOND EDITION Wairarapa Daily Times. [Established 1878.] SATURDAY, JULY 28, 1894. CHEAP MONEY.

Wh wish very much that wc could believe in the Colonial Treasurer's /scheme for settlers obtaining cheap money, but we must confess to a somewhat uncomfortable feeling with respect to it, Wo would like to welcome it con amore, and throw up our hats for it, but there is a peculiar s'mell of sulphur about it, and we hardly know whether to regard it as aboncfacliou ornh iufcvnal machine. Thepresentrateof interest in tho Colony oil good securities varies from six to seven per cent, It would; 1)0 snniewhafc less, only our paternal fipyeflpeuf; Javes mortgages, and so a jjttlc be added to tho interest rafp tp coyer this exaction. The Government would like to bring the rate of interest down to five per cent., and so far we aro with them. But the legitimate way to do this would bo to release mortgages from taxation, nnd this is really whftttligfiijato ought to do if it is honest in Its dPife t(t secure cheap money for fni'mprs, Wo do not believe in a Colonial Treasurer wlio makes monoy dear WJth one hand and cheap-with the othef', and this is just what Mr Ward's p#y .<f>ftonnts to, Ho has a big majority & j|is frock, p} )jpwover wrong auddangerpusl|is ppoje,cjt may prove, he enn con'/ U, »n.d when ho has carried it, what will happen ? Mr Ward we will assums seenres his million and a half in London iind is able to make one fawijflr in twenty, throughout New Zealand, iiappv.by lending bini money at less than tint prket rate. Or, to make every point in t'avoup of }fy Ward's scheme, we will assume. tkt y mi every ten, v/Wk estimate, 'fop » millm\ SfW fr'M does not go very far in mortgages when divided over the Colony, Titers may. bo twenty-live thousand pounds to lend on the North . Wairarapa County and twenty-five thousand in %i Pahiatua County, but these sums won't go.yiuy fajy and certainly will not satisfy a tenth ; 'jM%. demand, Now',' supposing"tbat' the capitalists, big and little, who now lend money

out on mortgage in New Zealand J object to the Government taking >their business from them and retaliate, by ■ putting up rates to nine and ten per cent.; what mil thecohsequencos bo? One lucky man may get money at five' per cent., while half-a-dozen of his neighbours pay ten per cent. Capitalists may not, dare not, must not, openly retaliate after this fashion, and there may bo no outward act of hostility towards the Government plan, but when the Government put their million and a half into, tho mortgage business, private investors must take money out. These investors becoming shy may take out five millions out of the Now Zealand field, while the Government ore''.putting, in a million and a half, and if this were tho case, the rate of interest would go up like wildfire, and the immediato outcome of tho Colonial Treasurer's scheme would bo dkak moxby. We do not profess any profound business knowledge, nor have we sought the opinion of experts on the matter, but our very elementary knowledge and experience of business is sufficient to show us tho fallacy of tlio Government scheme. However, the happy Liberals of this electorate are unlikely to tako the verdict of business experts upon what is after all a purely business question. They will accept preferably the pleasing asseveration of some popular politician that grapes grow on thorns and figs on thistles, .We are sorry for nil this becauso we are extremely anxious toseccheapmoney in New Zealand, and wo aro extremely afraid that when the pot lid is taken off Mr Ward's brewing, we shall havo to put up withoHAii MOXKV,