MR. WESTGARTH'S VISIT.

Auckland Star, Volume XIX, Issue 220, 18 September 1888, Page 5

MR. WESTGARTH'S VISIT.

HIS PROPOSED LOAN CONSOLI- - DATION.

HOPEFUL VIEW OF NEW ZEA-

LAND'S FUTURE.

(BY TELEGRAPH— OWN CORRESPONDENT.)

;•_ :_. Wellington, Monday. '■'. One .of the chief objects of Mr Westgarth's visit to the colonies is to make proposals to the several Governments for the placing of their loans on a more satisfactory basis than at .present exists, and he has submitted written proposals on the subject to the Treasurer of each colony as he has gone along. His main idea is one for a, general consolidation: of the loans of all the*.colonies in 3 per cent, stocks on the^ joint and several responsibility of the different Governments instead of.the varying rates on debentures now issued. In -default of such a complete arrangement, as this he suggests that all the colonies should agree to issue only 3 percent, loans; each remaining separately answerable for only its own debt, and the option of the latter idea would, he thinks, tend to make the public at Home feel that complete union is not far off. Another advantage would be that the conversion of our outstanding debt to 3 per cen_3. would bring in an enormous profit if it Were gone about in the most favourable way. Mr Westgarth also makes a separate proposal to Sir Harry Atkinson that this colony should follow the example of; Queensland in not allowing any municipal or harbqur loans to be raised directly upon the market, but that it should make those bodies negotiate such matters with the Government alone. ~ The effect of that would, he considers,1 be wonderfully advantageous to the credit of the colony and reduce the cost of loans. As regards the reception of his proposals by Australian Governments, he thinks that the irritation arising from protective tariffs presents the only serious obstacle to their adoption. Mr Westgarth. it may be observed, is a strong advocate of free trade. "Mr Goschen's conversion movement has," said Mr Westgarth to-day iri an interview with ah IE vening Post"' reporter "madean enormous void in the three: per cents, at Home. Poor widows and orphans who have been accustomed to receive their three per cent, interest, and haye found their incomes cut down,wouldbe only too ready to plunge into your three per cents, if you will offer them. If you delay long the void will be filled, for Canada has already begun to raise money at three per cent;, and foreigners will soon come in. You must remember that there are hundreds of millions available if you will only put your stock into it. I don't see much difficulty in making the arrangements, for there is no reason why the irritation over the tariffs should prevent the colonies from going in i for such a union as I have spoken of." In answer to a question as to.the .feeling j towards ' the colony in Home financial ! circles Mr Westgarth "said, "The general j idea is i: that you are rather overwhelmed with obligations for bprrowed money arid that Bort of thing, but along with that there is also a feeling that youmust come through it all right. Your securities, you are aware, are lower than those of any other colony of the Austialasian Group, and there is a good deal of distrust atribngst the quiet old women who prefer British consols to anything else; but there is a very good feeling indeed on the. Stock Exchange. It has of course beeh considered that your colohy brings out rather top many loansj but since yon'have undertaken not to raise anotheryipr three years; the attitude is now onebf confidence."

Any repudiation on the part of those Harbour Boards who have borrowed on the London market would, in Mr Westgarth'j opinion, affect the general credit of the colony very seriously, though from the results of his inquiries he does not anticipate that any such difficulty will arise. Mr Westgarth considers the present boon in wheat an excellent chance for the colony. He speaks in sanguine termsof the ultimate prospects of the frozen meat market, though only perseverance and the maintenance of a constant supply can overcome the efiects of prejudice against the colonial article..' '.:.-■'.- .',' ' ,-.-. ' ■;'

Speaking as a tourist, Mr Westgarth says lie is charmed with the scenery through which he has passed since; his arrival in the colony, and his conversation glows with enthusiasm when describing the harbour and suburban views in the vicinity of Aucklarid.