The Press. MONDAY, APRIL 14, 1890.

Press, Volume XLVII, Issue 7524, 14 April 1890, Page 4

The Press. MONDAY, APRIL 14, 1890.

It is now,evident that a sectiou of tha people of Wellington are taking stepa to bring about an agitation in fayor of another loan. The North Island Trunk Railway is receiving a great deal of attention on the part of the press, and the journals of the capital are beginning to discuss the expediency of raising another loan for the purpose of opening up the country in the interior of the "North Island. "If we are to " have a loan," says one of our contemporaries, "for opening up this country, " let the central necessity of that " loan be the extension of the railway in " successive sections of forty miles: <'and if it be agreed that a further " sura will be needed for surveys and •• the opening of roads to act a3 " feeders to the railway, let such sum " be comprised in this loan, but let it " be completely and absolutely distinct " from the part of the loan authorised "for the construction of the railway.', Another of our contemporaries enters upon an elaborate calculation ta..-show that the burden cf interest on our debt is. being reduced. Our contemporary points out that the railways lest year paid three pe* cent. on the cost of construction, and then goes on to say, " As the actual average rate of "interest which has to be paid "is a "little over four per cent., it is evident "that the net profits derived from tf the railway working pay full "interest on ten millions out "of the fourteen which ~the open " lines have cost." In this ouif contemporary goes on to say, ithe public debt is practically, reduced to £27,000,000. It is next pointed out) that last year's conversion relieved the taxpayer of more than J£3O,QOO a year, and that in the following year, owing to the falling due of old loans, there will be a relief to the taxpayer of another sum equal to about £25,000 a year. The inference drawn from these last named ■facts is that the colony, if itf 'chose; " to do so, could borrow thieecquarterd "of a million this year, and a like 1 "sum next year, without thereby in- ; " creasing the public burden in respect " of liability for interest." ! The object of all this is only tod apparent. The people of Wellington desire above all things to see that city; made populous and wealthy, and they are not at all particular how thisi is dbne as long as theirJ Object accomplished. They now see enough that the North Island Trunk Railway cannot possibly be constructed with the money that is' available for Jihat,purpose. At the beginning ; pf the last financial year, only about £434,000 out of the million set apart was avail* able,; v the balance of the load had been expended on works at the North and South ends, and upon the -purchase of Native lands. The policy agreed to last session with re*speot to this railway was this s That mdre Native land should be Acquired within the reserved area, and that the land should be opened up with roads so as to make it available for settlement; the proceeds of the sale of that land to be credited to the railway; fund as they accrue. Nobody wishes that a single sixpence of the million load should he diverted from ita original purpose. By all means let that, fond be managed in the way best calculated to:enable at least a portion of the railway >to'be constructed. If, however, the people of Wellington imagine that they are going to succeed in cominitfcidg New Zealand to another bcheme of borrowing they will discover before long, that they have made a, very serious blunder We venture to say that if any organised attempt is made to, se.cure the, consent of-Parlia-ment to another loan, there will be wide-spread and general indignation throughout the colony. But for the cost we believe the seat of Government would; have been removed from Wellington long before this. It may yet become a question whether it will not pay the colony to incur the oosfc of removal rather than have members subjected to the pernicious influences always at work at Wellington. Turning to the arguments in favour of borrowing, summarised above, we would first of all point out that although our railways have paid three per cent, this year, they paid £2 12b per cent, last year, and £2 6s, per cent, the previous year. r It is absurd, therefore, to contend, as our contemporary apparently does, that the taxpayers have been relieved thfs year oi a burden equal to the interest on £10,000,000. Nothing of, the Jtlnd has been the case. All the relief that they have had has bfeen the difference between £2 12a and £3. per cent. Besides, who can Venture to say that the railways will pay £3 per cent, during the year upon which we have entered. What with the agitation for lower rates on the one hand, and for increased cost of management in the shape of wages on the other, ft is quite possible that the profit; nest year may be much leas. Moreover, owing to the Dunedia Exhibition, the passenger traffic on the railways has been exceptionally heavy during the past financial year. Aβ regards the argument that owing to to loan conversions and" Other causes the burden of interest is rather diminishing than increasing, we have to say that in the interests of the colony it is imperatively necessary that the burden should be kept as' low as possible. In the face of the rate at which that burden has been increasing, Parliament bat

Jmeß,|train|ng every nerve to reduce tie expenaitttre, in other direotlone. Now it is ijoolfy suggested that all this work Baoiild be neutralised by additional borrowing. For the information of our readers, we give the following figures showing the rate at whioh our interest and sinking fund have been mounting up. The appropriations for the years named were as follows :—

ISBI-82 £1,499,318 188485 1,559,115 1886-87 1,654,500 1888-89 1,838,589 188>90 ... . ... 1,888,405 So far, then, 'the colony has not yet begun to, experience any relief from a diminution in the amount of interest aud sinking fund. Yet it i 3 calmly suggested that the colony can, if it wishes, borrow three quarters of a million this year, and a like amount next year, without; increasing the burden of interest. Are the taxpayers of the colony to have no consideration 1 Is every fresh conversion to be signalised by auother appeal to the London money market i If our Wellington contemporary represents the opinion of the people of that city this would appear to be the view entertained therel Fortunately the city of Wellington is riot New Zealand, aud it will bathe duty of the taxpayers before long to make the |fact perfectly apparent. r