MR WESTGARTH'S LOAN PROPOSALS.

Auckland Star, Volume XIX, Issue 221, 19 September 1888, Page 4

MR WESTGARTH'S LOAN PROPOSALS.

The proposals, made by Mr Westgarth to Ministers in Wellington will excite at* tention . throughout'the colony. On one point—that which refers to the prohibition of harbour arid corporatio n loans on the Stock Exchange— Mr Moss has sent us a '■• letter which will be found in our correspondence columns. We agree ■ with Mr Moss that any. money advantages possible from the proposal will begreatly outweighed by the political and social evils that must result from a new departure which would extend the power oi the General Government in controlling local undertakings. Mr Moss styles the proposal, "a danger ahead," in which view we thoroughly concur. On Mr Westgarth-s proposal for consolidating all Australasian Government loans into a single 3 per cent, stock-we shall defer comment till the details: are before us. It Is of top^large^a^scjope to be dealt with from a vague telegraphic summary, but with reference to our own colopial loans there 'are difficulties which appear insuperable. Most of them are,for a fixed number of years— the 4 per cents, from 40 to 50 years—and during . their currency they can oriiy" be consolidated by purchase at the market price of the.time. How Mr Westgarth. proposes to meet this difficulty we are not yet told. Several conversions of our;stock; hav.tkken place, and always, as we have been as- '•'** :'-. .;* -.: : : ;■■■■;'.-;■': -*:■■'*::.;.';'.' -' i„ .;' '' ■' [ : ' ■

sured by the Treasurer of the day, with very great profit to the colony. Between this prdfit/ great professed retrenchments and -great increased taxation, our Treasury ought to be in the most flourishing' condition. We know that it,is not so, and have been taught by experience to look sceptically upon such proposals. Nor can *we overlook the political and social results—the most important, perhaps—which depend upon public finance, and to which Mr Moss, in his letter, draws special attention."..; ;,-.;.",..';*., '