NEW PLYMOUTH HARBOUR BOARD LOAN.

Waikato Times, Volume XXXVI, Issue 2928, 21 April 1891, Page 4

NEW PLYMOUTH HARBOUR BOARD LOAN.

The cablegram published in a i3 ,„e, that "the council of fomge bond holders urge* the -overnment o. New Zealand to re-cons., er the cast, oi tho investors in ti»= ,-><:»' l '>■<»<>f> Harbour Board bonds " ia mdy what M.ichk have been expected, iholiisf.j IIIIC I suggestive one. """^j 11 , 1 ' , , Taranaki people m the luM.stbchct Hi... its expenditure would icsult. in Mich improved hi..hour f..cililiw. us wool.. J v \y n-pay .the annua charts „, interest and sinking inn.!, i„ h,. 0 he." .. miserable failure Iron. to .■»«. The N<-'W Plymouth people arc no m are. a harbour now that) they were at first, and tho real tangible result has been t. „hce a crushing load of debt upon whai oucht to be one of the finest and mod prosperous districts in the colony. Hou many times have we read of the bittci struggle* made hy the set. cm an,! ~ropmty owners to r,d tlauuehes ot .. responsibility which, m the diape o, heavy liarbour rates, had Woi thrown upon their unwilling shoulders. But in vain. The money had been obtained. f.uineone must pay, and the liiodes settl-r generally had to add law costs to bis rates. But with the diversion ot a portion of the land fund (which had oridr-ally been set apart as security for the re-payment of the loan) came tie hope to the. Taranaki settlers that tin luirbour works with its liabilities wouhi be taken over by the colonial taxpayer, and the coast people relieved, at least partially, from the haled raVs. 1 her. can be no doubt that in lutcifcring with the landed security for this loan, ami then in providing for a crt-inn payment or interest (the default of which mifdit have acted prejudicially upon a "colonial loan, just at that time bein" floated), the l.lo,eminent had, at least so far as the English investor is concerned, assumed a responsibility from which they will find it hard to divest themselves. It is. no doubt, upon these grounds that the debenture liohicis. when the interest became overdue, have applied to the council of foreign bondholders, and their protest is evidently supported by that body. It is all very well for us to say, " It is surely the affair of the Taranaki people ; let them settle it," It all'ects prejudicially the credit of the whole colony. The. Knylish capitalist cannot and wilfnot discriminate between d'illcreut parts of the colony. It is a New Zealand harbour loan, and has made default. This is the way it will be looked at, ajud not unnaturally. We believe the olony will yet be obliged to Lake over this, and probably other liabilities of a similar kind, and get the rates out of the contributing parties as best they can. At all events it should serve as a lesson to us, privately ami publicly, upon the evils of extensive borrowing. Easy come, easy go lias been New Zealand's financial policy for a long period, and the dilliculties now met with Hi various quart-rs are only the natural results from what in after years will be regarded as the reign of ic:'.;le.-,s extravagance.