DEAR MONEY.

Press, Volume XLVIII, Issue 14513, 20 December 1912, Page 6

DEAR MONEY.

How difficult Mr Allen's task in arranging for loans in London is likely to prove, unless the financial situation materially changes, is shown by the fact, reported in our cable news this morning, that tho underwriters are saddled with eighty-five per cent, of tho New South Wales loan. Money is dear, and from all appearances, it is going to be still dearer. Tho special correspondent in London of the Sydney "Sun" has been interviewing Sir Edgar Speyer, one of the leading English financiers, on the subject, and what ho was told was decidedly not encouraging to tho many colonial Treasurers who are faced with the task of raising money. Sir Edgar said it was quito impossible for any country to got money at a moderate cost, and pointed out that all tho new nations, and some of tho old, were seeking loans. The correspondent enumerates tho factors that aro making money dear —"Continental "crises, a wild' scare amongst tho "'thrifty, the universal application for " money, the depreciation in tho valuo "of tho sovereign, and an insistence "by tho investor for a higher rate of "compensation to him for this depre- *' ciation, and the increased cost of liv- "■ ing -which is being experienced "throughout the world." Tho outlook ho describes as "very grave, very grey, J "and very gloomy,", and his comments should bo carefully considered in New Zealand, especially by those people who aro continually urging the Government to undertake fresh expenditure of a more or lo&s unreproductiro character.