MR DUTHIE INTERVIEWED.

Press, Volume LVI, Issue 10264, 6 February 1899, Page 5

MR DUTHIE INTERVIEWED.

(PRESS ASSOCIATION' TELEGRAM.) WELLINGTON, February 5. Iv explanation of the floating of a million loan, the Ministerial organ on Saturday morning had the following:—"The million loan, which has, of course, been authorised by the New Zealand Cabinet, is projected under the provisions of certain Acts of the Legislature. The principal of these are the Government Advances to Settlers Act and the Aid to Public Works and Land Settlement Act. A measure amending the lastnamed statute was passed last session, giving additional autltority to raise half a million sterling, of which £175,000 is to be devoted to railway construction, £200,000 to rolling stock for the railways, and £125,000 to the construction of 'roads, tracks and bridges, and any such other works and purposes as may be authorised.' The Government has also power under the Government Advances to Settlers Act to raise a sum not exceeding £150.000 in any year, the operation of this Act having last year been extended till the year 1901. Money raising powers are also conferred by the Land for Settlements Act, Dairy Industry Act, and others; so that in proposing to raise a million, the Cabinet is well within the mark. The minimum fixed indicates that the loan, when placed on the market, is assured of a better reception than tho South Australian loan of a million and a half, floated the other day." Thinking this statement "in explanation" a singular one, to say the least—in the face of known circumstances—l waited on Mr Duthie on Saturday evening, and asked his opinion. He replied that the New Zealand loan of one million announced, could only be under the Advances to Settlers Act of last session. Mixed loans, as suggested by the "Times," were never issued. The lastnamed Act was passed in September, and before the end of the month the Government liad borrowed £25,000 from the Bank of England against it, and another sum of £100,000 liad since beeu similarly obtained. This urgent need to obtain money from the Bank ot England is, in Mr Dutine's opinion, evidence that tiie Government lending department have no spare funds, and he thinks it could not well be otherwise. He draws attention to the fact that various short-dated debentures of colonial issue, amounting in round figures to £2,300,000, fell due in May last, 'lhese were held by the departments, principally by the Post Office Savings Bank. Application was made to get a Stock Exchange quotation for £2,700,000 to cover the re-issue, and enable it to be sold in London. Objection was taken by the Committee of the Exchange to what a London review described as a surreptitious mode of getting such loans on the London market, with the result that the Bank of England withdrew the application. On attention being drawn to this in the House by Mr Duthie, Mr Beddon, as will be remembered, made a lengthy confused denial. Up to the date of the most recent mail advices, the application seems never to have been renewed, and the October quarterly returns show that three per cent, inscribed stock has been issued as against these overdue debentures without an exchange quotation. As the member for Wellington points out, the stock could only be sold in London at a loss, and this re-issue is accordingly probably still held by the departments, so tying up their available funds. But for some such course. Mr Duthie thinks it is incredible that the Government would again seek to raise so large an amount as a million for advances to settlers. The delay, difficulty and loss over investing the forme r loan ought, he considers, to have proved a warning, but the excessive amount now posed to be raised may for a time enable the Colonial Treasurer to avoid the exchange difficulty, although the departments must suffer through so large a share of their fund? being held invested at 3 per cent.