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Waikato Times, Volume XXXVIII, Issue 3105, 9 June 1892, Page 2

TnE success of the City of Sydney 4 per cent loan, which was over subscribed at a minimum of 99, seems to indicate a change of feoliug on the part of the British investor, which may render it easier to obtain colonial loans iu the future than it has been lately. If so, it is to be hoped that the various Governments will exercise a rigid self-restraint, and will keep their borrowings within the bounds of prudence and precaution. Over borrowing briugs apparent prosperity to the country, and some shortlived pooularity to the Government which is'guilty of it. But its real effect is in the direction of impoverishment. It withdraws labour from soundly productive and profitable pursuits to those which are but temporary. When it dwindles or ceases, as in the nature of things it must do sooner or later, it leaves tbe country worse off than if it had never been entered upon—hosts of unemployed on one hand and a fictitious and impossible wage tariff on the other; heavy burdens of interest to be paid and diminished production with which to pay them. The limit of productive employment for borrowed money is soon reached. "When the works proposed to be constructed will not pay interest on the one hand, and when the attempt to construct them will unduly interfere with the labour market on the other, it is treason against the best interests of the country to engage in the expenditure. Let ns hope that this simple lesson has been properly learriu, and that it will be many a long day before this colony again enters upon a loan expenditure.