The Waikato Times AND THAMES VALLEY GAZETTE.

Waikato Times, Volume XXXVI, Issue 2923, 9 April 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

Kiiual and isxact justice to all men, 01 whatsui-vnr state or persuasion, religious or political.

THURSDAY, Al'lllL n, 1801,

Thohk who udniiimtur tho uflairs of courjtrioa -which, onjoy representative government havu of nocessity to look about thorn for measures which ahall socuru tho continued support of a majority of tho representatives chosen by the people. It is natural theroforo that those who interest thotnsolvos in public affairs should eudwivour to foresee what tho programme of the existing advisers of the Crown will bo. All who are versod in the art of governing are aware that selfishness is the guiding powor of members and constituencies. All talk volubly of tho welfare of_ the colony boing paramount, but bitter experience has taught tho lesson that the sentiment only holds good so long as there are no material advantages to be angled and schemed for, for themselves or thenconstituencies. For a Government not to have a bait, in the shape of money to expend on public works, to dangle before the noses of members and those they represent, is certain to be treated as guilty of a political sin. The present Government are rather uncomfortably placed in this respect, there is very little of the last loan left in the coffers, and what is left has been voted for specified works. The voice of the electors was most emphatic that there must be no more borrowing. The Government have, however, dropped into a windfall in the snapo of the accumulated sinking fund on the loans which will shortly fall due, and which they purpose to convert. This course was made legal by the Act of 1884. Sir Julius Vogel wanted money, and the capitalists of London wero chary of making further advances, so he secured tho passing of the Act, which ronders logol a repetition of the somewhat doubtful course of breaking open tho public money-box and abstracting that which wo had honostly put by, in order to keep faith with the public creditors. Such boing the position of affairs, it is hardly to bo expected that the present Government will hesitate to follow in the footsteps of New Zealand's greatest financial manipulator. It is well, however, that tho public should clearly understand what tho transaction moans. Conversion of loans inean_ simply tho giving of a new bill in order to secure the cancellation of an old erne. This, of courae, is an advantageous transaction, when the new bill boars a lower rate of interest than did tho old one, and tho uurront rate is now less on colonial securities than at tho tho original debt was contracted. There will be less to pay annually as interest, but we shall not be one jot nearer the extinction of tho debt than we were before ; in fact we shall be worse off by half a million—the estimated amount of the accumulated sinking fundThe effect will be exactly the same as having gone into tho market, and borrowed half a million at the current rate. The Premier has spoken very strongly against further borrowing, and very truly stated that the interest on our debt was drawing the life blood out of the colony. To propose a loan in a straightforward manner would, be to court certain defeat, but a transaction like that contemplated is likely to bo much moro louiontly thought of. Members are nearly all pledged to oppose further borrowing, but conversion and seizure of sinking fund, although in fact the same thing is called by another name. If this money is only diplomatically distributed, there is little probability that there will be any serious opposition by members, and the Ministry will be relieved from the sin of having no metallic sop to offer in order to appease tho inordinate appetite for public expenditure, which long indulgence has rendered abnormal, and placed the colony m the position, to again quote the Premier, of having its life blood gradually drawn from it.