PUBLIC WORKS AND FINANCE.

Auckland Star, Volume XXXIV, Issue 179, 29 July 1903, Page 4

PUBLIC WORKS AND FINANCE.

Mr. Setklon's answer to the Canterbury deputation which lately ivrged upon him the completion of the Cheviot railway was marked by sound political wisdom. The Premier freely admitted that the Minister for Public Works had promised that the line would be finished within, a certain time. But such a promise must be conditional upon the possibility of raising money for the purpose; and- _if there are no funds to be allocated the line must perforce wait. It ia of course satisfactory to us to observe that Mr Seddon thinks an exception should he made in favour of the North Island Trunk line on the ground of its value to the whole colony. But we agree that even if the work upon this-siiprenie-ly important public work has to be delayed, it is advisable now to limit our expenditure on loans." It is for the Ministry to decide how this can best be done without disorganising the public works system, or throwing large numbers of wage-earners out of employment. But the time certainly seems to have come for a bold stand against anything like reckless or unproductive, or unnecessary expenditure of the public funds. In his remarks to the Canterbury deputation, the Premier referred to the difficulty at present experienced by the colonies in raising loans on the London market. The reception of the Queensland loan a few days ago is a case in point. A small loan of £750,000 at 3£ per cent, brings only 93J net, and causes v heavy fall in other Queensland stock. The Queensland ."5£ per cents due in 1045 fell :U, and the 3 per cents fell to 90A. Commenting on this tho 'Times" remarked that the constant succession of colonial and municipal issues is having a bad effect on the market; that during the last three years a considerable portion of the larger loans have not been permanantly taken up; and that the Exchange underwriters have decided not to underwrite farther colonial or corporation loans at least for some time to come. It is impossible to misunderstand the point of this last announcement. The colonies as a whole are informed that there is no more money available for them at present on any reasonable terms, and the sooner we realise the position and act accordingly, the better for us all.'

It is satisfactory to learn, not only from Sfr Seddon, but from such "bitter opponents of the Government as Mr J. Allen and Mr'Duthie, that there is no probability that the present tightness of. (lie London market will affect colonial finances seriously. Mr Allen, however, indicated a danger in the fact that the Government lias issued a large number of short dated debentures, over which there may be difficulties as they fall due. But it is clear that Ministry and Opposition are now of one mind as to the necessity, for limitino; expenditure and refraining from further loans till our financial equilibrium is somewhat restored. It has become a debatable question whether it is wise to borrow money to lend to farmers and local bodies, and to purchase land for settlement, while vast areas of good land are still waiting to be opened up. And it is now clear that these forms of expenditure must be temporarily stopped, and that it will be. for the time impossible to prosecute our public works system on the same comprehensive scale as heretofore. It is better- to recognise these facts now than later on, and we are inclined to believe that retrenchment in any form, compulsory or not, will prove a blessing in disguise. We have sufficient confidence in the resources of our country and the energy of our people to believe that we can exploit our vast potential wealth better by slow and steady development than by any "boom" policy, which must ultimately lead to a disastrous and inevitable financial crisis.