IMPERIAL CREDIT.

Auckland Star, Volume XLIV, Issue 108, 7 May 1913, Page 4

I MPERIAL CREDIT.

When .the Imperial Trade Commission was taking evidence in Wellington two months ago. Mr. H. Beauchamp, the Chairman of the Bank of "Sew Zealand, suggested to the Commission a. scheme of Imperial finance which, thongh not precisely original, certainly seems to deserve a little serious consideration. Mr. Beauchamp's idea is that, as England's colonies and dependencies are consiantry borrowing money to be used in the development of the Imperial territory, it would not be unreasonable for the Empire as a whole to lend its credit to guarantee such loans, and thus secure money to he employed in what are really Imperial investments on easy terms. Imperial co-operation in matters of common interest, is, as Mr. Beauchamp said, a great ideal, but so far few attempts have been made to realise it in practice. He therefore suggested that "the principle- of a joint Imperial guarantee in connection with loans for defensive purposes and for improved communications (shipping, harbours, cables) between different parts of the Empire, and other matters of Imperial importance might well be discussed by the Imperial authorities.

Tlris idea was not received -with any enthusiasm by the Commission at the time. One of its members remarked that if such an arrangement were made, "the people of the United Kingdom would be obliged to accept a financial obligation cf which the Parlittment of the country had not approved." Bat it is certainly interesting to note -that Mr Alfred Deakin, appearing before the same Commission in Melbourne yesterday, referred to Mr Beaucha-nrp's scheme in terms of warm commendation. Mr Deakin, as exFederal Premier and an Imperialist of •world-wide reputation, speaks with force and authority when he says that Mr Beauchamp's proposal could be carried into practical effect. He thinks that the Parliaments interested would be prepared t.O-.xef«.r_ s.ucjx.otifietioirs to an Imperial Development Board, and that

.they wouJd agree to -isuch a body raising loans backed by the joint Imperial, credit, -witbin certain limits, 60 long ms the money Avcre utilised solely for the purpose of developing England's outlying dominions. It may bo pointed out that there arc certain manifest objections to this proposal. As the la.st issue of the "Insurance and Banking Record " remarks, in commenting on Mr. Beauchamp's idea, " The Imperial Government could not, on business principles, guarantee public loans without having some control over the expenditure, and this the borrowing dominions would never consent to." This is certainly arguable: and so, too, is the ''Record's" contention that "if the Australian. States and New Zealand continued to borrow in the present haphazard and piecemea" manner, no guarantee would be likely to ensure them better terms." On this point 'Mr. Deakin differs entirely from the '"Record," for the chief merit he sees in the scheme is that the Imperial guarantee would reduce the cost of borrowing to the colonies. No doubt any such-proposal would need to be discussed with great care before it could be adopted; but Mr. Beauchamp at least deserves the credit of having suggested a step which would help "Imperial co-operation" to materialise into a. reality, and has won the approval of go distinguished an Imperialist as Mr. Deakin.