THE GOVERNMENT LOAN.

Auckland Star, Volume XXXIV, Issue 304, 22 December 1903, Page 4

THE GOVERNMENT LOAN.

Our readers will have observed from the advertisements inserted by the Colonial Treasurer in the chief colonial newspapers that applications for the £500,000 Government- loan will not be received after noon to-morrow. No tenders will be accepted under par, but at par New Zealand four per cent. Government debentures can be fairly described as a remarkably sound and satisfactory investI ment. Holders of trust moneys in particular will probably be ready enoxigh to take advantage of this opportunity. Every facility is provided locally for would-be investors, as the Colonial Treasurer has arranged with the Auckland Stock Exchange to receive tenders through its members. We have no doubt that the decision of the Government to trust to our local resources rather than take any risk on the depressed English market will be fully justified. There is plenty of floating capital in the country, a good deal on deposit in banks without interest or at low rates, ready for a sound investment; and the success of the Christchurch Tramway Company's quarter of a million loan a few months ago indicates that we are quite capable of supplying our own financial wants just now. At the same time it is to be hoped that if this present experiment is a success it will not encourage undue confidence in our financial position. The need for economy is as urgent as ever, and however easily we may be able to get money when we want it, the day of reckoning is bound to come. However, for the time being there is no doubt that this loan is necessary, and the attempt to raise it locally appears to us to be distinctly a step in the right direction.