BORROWING.

Auckland Star, Volume XIX, Issue 24, 30 January 1888, Page 2

BORROWING.

UNINTENTIONAL RESTRICTION.

(BY TELKGUAI'H.—OWX CORHESPOXDEXT.)

Wellington:, this daj r. The awkward blunder which I yesterday i nformed you had been discovered in the Loan Act has naturally caused no little sensation. A semi-oiO.cial explanation of the position of aflairs has been published to the ciTecb thai, iv deference to the opinions of members who urged thai) a pledge to sibsfiolu from further borrowing for three years should be embodied in the Act, tho Government gave way somewhat reluctantly, and drafted a clause to the effect that " subject, to provisions of this Act " no loan should be raised in Great Britain before 31st March, 1891. In some unexplained way this new clause, as drafted, •was inaccurately written out and the clause as passed by the Committee, of the whole House runs thus in the Ant now on tli6 statute book :---" Subject to the proviso to 'Chin clause, no loan of which the principal or interest shall be payable in the United Khij/c'om ghall be issued by the General Gove^uraei))- of New ' Zealand before the 51-;t day oi March, 1891." The restitution of tho words "proviso to this clause " for " provisions of this «s.ct completely .filtered the purport, of the clause, by ih.uk»i- it refer only to the proviso which was subjoined and which dimply excluded from the operation of the restriction the North Island Trunk Railway Loan and. the loan to be raised under the Public Revenues Act. The alt ovation escaped the notice of all the iinan- \ v val aud;lcs»l authorities ill the House anci i

the Council, and it was only when the Act had been printed and came before the Cabmei that the unintentional prohibition of ttae very loan thai: the Act was meant to authorise became manifest. Ifo is not considered clear that the clause would have the effect implied in its actual wording, tecau.se the intention of Parliament is pbvioi is, and that tho wording is due toclerical error: bub the question is as likely to be raised and as a niatter of fact it was never intend ed by the Government to float new loan 1: efore next .session as Government believe i they have ample resources to carry on public works until then. Nor does the cliause provent tl« raising of the North Island Joan or the borrowing of ihe su m authorised in tlae Public Revenue Act, hB that £1,400,000 could be raised if requsxerl in any case. But beyond thia the prohibition is only against raising a ioan in the Uniftsd Kingdom.; th«re is nothing in the Act t«) prevent the money bein^ borrowed in this colony or anywhere- else ercejVj.ing in Great Britain.