OVER THE COUNTER.

Auckland Star, Volume LXI, Issue 130, 4 June 1930, Page 4

OVER THE COUNTER.

GOVERNMENT BORROWING,

WHEN WILL IT END?

(By Telegraph.—Special to "Star.") WELLINGTON, this day.

Ah important statement on the Government's borrowing policy was made to-day by a high financial authority. There has been some criticism-of the Government for its internal borrowing programme, not alone because of the fact that securities have been marketed'at a higher rate of interest than previously, but because of the fact that these Government bonds have been sold over the counter for, an indefinite period'; and for an unstated amount. Certain financial quarters have thought it advisable that the amount of the money to be raised internally should be known for the purpose of allowing the financial world to know where it stands in relation to Government absorption of available funds.

"The amount which the Government will raise internally will be the difference between the unexpended loan moneys in hand and expenditure which is to be made this year," said the financial authority. "This amount may be arrived at by adding to the annual expenditure, which is fixed by statute, the various votes which will be made in the House of Representatives. At various times it has been urged that the Government should go upon the local market for a fixed sum, but that is not a wise proceeding, for it does not want the whole of the money in one lump; it needs it as the money is Toeing spent. In marketing securities a saving in interest is effected, and the amount of the money raised in proportionate to the State's needs. > As soon as a sufficient sum is raised the securities , will be withdrawn from sale."