A LOAN FOR AUSTRALASIA.

Auckland Star, Volume XXXIII, Issue 113, 14 May 1902, Page 2

A LOAN FOR AUSTRALASIA.

(To the Editor.)

Sir, —The colonies have loyally re . v sponded to the Mother Country's an. peal to rally for the Empire. Indeed it might be said the colonies anticipated the request, for New Zealand led the way with offers of troops These thousands of troops were not sent without great but cheerful sacrifice. Doubtless the Imperial Government would be pleased to demonstrate practically its appreciation of the colonies' patriotism were an an. propriate means of doing so available. Perhaps the idea might be converted into fact by Britain guaranteeing an Australasian loan of, roundly ten millions sterling; namely, two millions for New Zealand and eight millions for the States of the Commonwealth, to be divided as agreed upon amongst themselves. The colonies were not parties to the Transvaal war.-, and suffered by it in many respects, although, no doubt, they reaped a considerable commercial harvest. One great disadvantage the colonies laboured under during war time was that flotation of loans, regarded apparently as essential by Australasian politicians for developing young countries,-was difficult, and values ruled many points lower than in normal times. I suggest, diffidently, therefore, the Imperial Government might be asked to extend to the colonies the benefit of its credit for a Coronation loan of ten millions This loan would not be regarded as an ordinary business matter, but purely a token of appreciation by the Mother Country of the colonies' great —in proportion to ability—and prompt assistance in the hour of need. All would benefit by a cheaper loan, and. whilst the colonies would benefit, the Mother Country ivould not lose anything, for intrinsically Australasian loans are just as sound as Gosehen's, and should not, were solidity the only consideration, rule lower. An Imperial-guaranteed 3 per cent. Coronation loan, judiciously advertised and placed on the market with a flourish of trumpets amidst the eclat, or on the eve of the rejoicings, might nett par, which T think no colonial loan has yet done. The last New Zealand and New South Wales k.ans? were underwritten at 94, from which there would be underwriters' commission and: flotation charges deducted. Further, and,not least important, their loan might set a good example, that possibly would be followed in future. It is improbable the Imperial Government would guarantee without a self-extinguish-ment fund. In November, 1000,1 was permitted by the "Times." London, and on January 25 last by the "Investors' Review," to state my views on the colonial system (or want of system) of colonial finance. I advocated a sinking fund and more self-reliance. The Agents-General laughed me to scorn, but time has been on my side, bringing consolation and gratifying revenge. On April 26th a cable message in the "Star" from Melbourne stated: "An announcement that a sinking fund would attach to all Commonwealth loans was greeted with applause." Can you imagine anything more likely to bind faster the ties between England and her colonies than the Coronation ten million guaranteed loan herein suggested?— I am, etc., . WM. S. AICKIN.''