SHORT DATED DEBENTURES.

Westport Times, Volume VIII, Issue 1209, 8 September 1874, Page 4

SHORT DATED DEBENTURES.

[WESTPORT EVENINO STAB. J

Although the statement that Mr Stafford had refused to join the T\linistry, by reason of the dangers looming ahead from the precarious development of the Premier's financial policy, has been since denied, yet the rumor recalls attention to the symptoms of alarm already shown by the Government as to the prospects of obtaining money freely, without resource to unusual means. The issue of short-dated debentures is not. unprecedented in the history of New Zealand finances, but it has been only exercised cautiously and to a limited extent. In 1870, the raising of £1,000,000, out of a loan of £ 1,000,000, on short-dated debentures, was sanctioned ; and the Act of 1873 authorised £2,000,000 to be raised in a similar manner, but at interest not exceeding six per cent, and the debentures were not made payable at a later period than seven years from the date of issue. In the scheme for the present year £-1,000,000 may be borrowed at not more than six per cent interest, but redemption is not made compulsory within any given period. The power of selling at an unusual discount is also entrusted to agents, and it may thus possibly eventuate that New Zealand bonds will suffer further depreciation. 'lhe expenditure of the £4.000,000 to be raised will bo distributed proportionately in the construction of railways, in public works on goldfields, roads, immigration, and general public works, and may under judicious outlay speedily become reproductive. But.the dread among many miuJ?, and in which Mr Stafford, probably shares, is that the return will not be prompt enough to stave off embarrassment', and that the numerous irons in the fire will burn some one's fingers. There is no fear of the ultimate success of the financial arrangements of the Colony, the danger is of occasional failures in evolving the primarv details. An all sufficient reason in public opinion that the bold originator of the policy should stand by the helm and steer the state craft clear of danger.