GOVERNMENT LOANS.

Press, Volume LV, Issue 10146, 20 September 1898, Page 3

GOVERNMENT LOANS.

TO THE EDITOR OF THE PRESS. . Sir,—With reference to this subject, allow mc to point out to your -orrespoudents, Messrs fctead and Henderson, that what they desiderate has been, in part at least, anticipated by tne New Zealand Consols Act of ida-.. xhat Act was designed, as it was at ihe time numorously described, to provide an investment lor tue money stowed uway in the "tea-pats and stocking- ot the colony. Oi tour_ _ it was in rea-ity a borrowing nie.i-ttre, nit-iided to increase the 'lreasurer s finance without going directly to the .London market. It is sull vi lorce, and provides, 1 -n___, exactly what -Messrs Steaa and Jtiendersou desire. Under the Act power is given to tue v.iovernuient to accept on deposit ±;60'J,UOU, iit tlie rate ot £250,-00 perjumum, at not e_.ce.ding 4 per cent, "lne ueposits are 101 a period uoi exceeding 40 years. Deposits may be lodged at any money order onice iv tue colony. A lie depositor can obtain certifleuit's w, bis deposit, split up into amounts ol £_ or multiples oi that sum. Every lacility is given lor transfer, and interest is payable at any money order office in the coiuiiy. Ii 1 remember correctly, the limit oi deposit, is lixed by regulation at not less than £10. You will probably remember that the nrst'year or two there wu-e baldly any deposits outside a very large one by the bank of JSew Zealand, which provided roum ioi* a good deal or aiscussion and criticism. L nforvunately, 1 Have not by mc at the moment the last .financial Statement, so cannot say what the deposits on the (Jonsols Account were during the last rinancial year,but the .Budget ol 18-/ snows that at the olsc ot Alarcn o_ that year the investments on Consols Account were £297,400, tue sum dep-»it-d that yeai being £loo,0io: Perhaps yuu woulci kindly suite in a footnote to tins letter what the deposits were during last linaucial year: iiie ucposit on Consols Account are oy the Act required to be invested in such securities as tue _fove_nor-_n-Uouncil t-.tiy authorise, it will thus be seen that the system oi investment advocated by Messrs Stead and Henderson \js jto all intents and purposes in operation now, and their letters justify the opinion that New Zealand Consols will become an increasingly popular method of investment as the working of the scheme becomes better known. Oi course, improvements can be made as experience suggests. Permit mc to add that to the late Trea_urer, the Hon. J. G. Ward," is due the credit of the inception and carrying through of this excellent measure. The other questions dealt with by your correspondents—as to whether the * country shouid or should not- cease borrowing—are too important to be dealt with hurriedly. With your permission I will discuss them in another letter. Thanking you,—Yours, &c, (..-. \V. iIUSWELL. September 17t_i, 1898. [The deposits during last financial year were £s_,7_ij, and the total amount outstanding on 31sb March last was £356,1-5. The interest paid is 3_ per cent.—Ed. Pbess.] TO THE EDITOR OF THE PRESS. Sir, —The question of local loans, reopened in your columns by Mr G. G. Stead, is worthy of far more thought than the financial experts have hitherto bestowed upon it. The suggested issue of non-ear-marked bank notes was thrown aside when invitations to supply colonial cash, in return for debentures, were made by the then Colonial Treasurer, the Hon. J. G. Ward. It is problematical if the general public would respond more freely were the Government to call anew for tenders for debentures. By the way, cannot any small capitalist at the present time apply to the Treasuj ~ for a debenture, according to the formerly published conditions? We must bear in mind, that an unsuccessful attempt to raise a' large loan locally would materially injure us at Home. The scheme I ,enclose has never been fully put before your readers before, and if you can publish it I have no doubt that Mr Stead and other gentlemen of monetary moment will give it a fair criticism in the public interest.—Yours, &c, J. H. NEWLYN. September 17th, 1898. (The. enclosure appeared .ome time, ago in the columns of a contemporary. We regret that we hftve not space to republish it.—Ed. Press.)