DOMINION FINANCE.

Auckland Star, Volume XXXIX, Issue 184, 3 August 1908, Page 7

DOMINION FINANCE.

IMPORTANT STATEMENT BY SIR JOSEPH WARD. fljy Telegraph.—Parli-imentary Reporter.) WELLINGTON, this day. The Prime Minister has made several statements in the House of Representatives this session in regard to the financial position of the Dominion, and has contradicted in emphatic fashion the rumours of stringency and unrest that Jiave been circulated in certain quarters. Some misapprehensions remain, however, and to-day your representative waited upon Sir Joseph Ward and asked ■srhether he could throw some further light on financial matters, particularly in view of the reported possible disorganisation of the London money market owins to a hitch that was recently reported by cable of a South Australian two millions loan. "I shall be pleased to give an outline of the financial position."' said the Prime Minister. 'I have stated more than once that our financial position at present is an unusually strong one. and my justification for making that statement will, hy the impartial critic, be confirmed when I say our funds in New Zealand are ample for our requirements for Borne time to come. The Treasury cash balance with the Bnnk of New Zealand yesterday was £573.000, and the total balances of the Government accounts in the Dominion were £825.000. Tn addition to this, there is over £000.000 at r the credit of the various imprest accounts of the Government officers throughout the country for payment of wages, etc.. so that it will be seen Ibat the Government has nearly a million and a half cash in hand in the Dominion. "Then as to the position in London. W3 have in London gilt-edged securities amounting to £856.000, which cost us £SOO.OOO. and they are in the reserve fund securities account, and are available as a margin against advances, which, if required, can be readily obtained. We have also £415.000 securities, which cost us .£400.000. in respect of the T-ands for Settlement Investment Account, on which advances can also at any time be obtained, so that upon the combined securities, we could, if required, obtain, at least £ 1.200.000, and as the securities referred to are unpledged— that is, no advances are standing against them, we are occupying a remarkably ftrong financial position in London. "Then, in addition to this, we have Parliamentary authority for a loan of £1,250.000. 1 have already sent a delegate's authority to the High Commissioner upon which, at a moment's notice by cable, he can in London issue debenture stock for £1.250,000, so that it can be seen that if the necessity arose for large advances, which at present are net required, by issuing the debenture stock that I am now referring to in London, plus the £1,200.000 of the securities in the reserve funds and Land for Settlement Investment Account, we would have no less a sum than £2,450.000 of securities available in London. I think it will be seen by anyone who knows anything of our financial history that we have never been in a stronger financial position than we are to-day. "Then take the position or our current loans that are falling due during the present year, that is between now and the 31st March next. We have nearly two and a-half millions under this heading. Of this amount arrangements have been made for the renewal of £1.700,0(10 at 3t per cent, and of this balance the holders of a very large amount have already intimated their desire to renew at the due date of their present stock, and I may further state that the whole two and a-half millions falling due will be effected without any additional cost being cast upon the Dominion. Considering this and the large amount of further securities that we have in hand it will be gratifying. I am sure, to the country generally to know that a matter which is of such importance to our people of all classes, from the humblest to the highest, is distinctly of a most satisfactory character. "Then let mc for a moment look at the revenue as it stands to-day. For the 12 months ended 31st July, 1007, our total revenue was £8,708.878. A ■tatement of the revenue for 12 months ending 31st July, 1908. that is up to yesterday, shows that we are £309,290 to 4he good by comparison with the actual lesults of the previous twelve months, Jfcnd this, with all our reductions of reVenue in operation, and with a Customs Icvenue of £100,650 less up to that period for 1908 than for the same period of the previous twelve months. The following lable shows the actual results of the faveral Departments.

"Then about the Government borrowings in New Zealand, and interference with the local money market on that amount. It is grossly unfair for any Bueh statement to be made The total amount we have borrowed from the public in New Zealand last j'ear was £28,000. From information obtained from the A.M.P. Society,, the total amount of New Zealand money which has bten borrowed from that institution in twelve years amounts to £225,000. and the total amount the Auckland Savings Rank has invested in Government stock is also £225,000, and

that is over a longer period of years than the A.M.P. Society. "Then the [endings of the Government Insurance and the Public Trustee in all parts of the Dominion to local public bodies for the financial years ending 1906-7. The total loans to local public bodies by the Public Trustee for the year ending 190G was £27,000, and for the year i(X>7; £20.250, and by the Government Life Insurance Department for the year 190G, £16,550, and for the year 1907. £11,200. So that the statement which has been circulated that we have been utilising these departments' monies in largo sums for loans to local public works is entirely without foundation. The amount loaned by both of them to local public bodies is a mere drop Jn the bucket. Then, as against all this borrowing, there is the fact that the Government Advances to Settlers Department has loaned to settlers during the same period, .£!.400.000, and the Advances to Workers' Department has lent nut to workers £210.000. So that an analysis under this heading entirely disproves the contentions that some people have made. l J ossibly they are under the belief that their impressions were right, but an examination of the fact shows conclusively that they have been working on a wrong assumption. "As to the Post Office Savings Bank, the Government has not raised the rate of interest in this important branch of the Post Office. It is carried out on the same lines now that it has been for tlif last 50 years, and no one can legitimately argue that the Post Office Savings Bank should be instructed not to accept the deposits of the small amounts that our wage-earning class generally put there. Tt has also to be remembered that the withdrawals from the Post Office Pavings Bank yearly are very large, and that from the point of view of a permanent investment it has to be looked at in the light that the depositors may withdraw their investments whenever they desire."

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