THE FINANCIAL POSITION.

Press, Volume LI, Issue 15453, 4 December 1915, Page 11

THE FINANCIAL POSITION.

NO SHORTAGE OF MONEY. SIR JOSEPH WARD INTERVIEWED. On Sir Joseph Ward';- arrival from the South l.i.v. night a representative of "The Press" interviewed him regarding the Dominion's financial positicn. In bis remarks the Minister of Finance made a statement as to tho unlikelihood of the Government raising further loans in the Dominion. S : r .Joseph that as tar as the Government is eoncerued there is no shortage of money. There is ample fo r all ordinary requirements, and in the circumstances it. was not the business of the Government to attempt to hold out an advanced rate oj interest to secure further n:one\s. The Go vein men; has the full 11 *).'>')'> of loan money to carry it on to 1917, and bad .-utlieient money for set tier.-., ior worker.-, and /or l'>cal bod..'.-, within the limits fixed in reepec: t > cae'i. He had already gaid publiejy more than oiic-e that, there was a very large Mtpniy of money in the 'Dominion at present. Ho did not believe that there was ai: v chance of the Government raising a loan in the Dominion for ord'iijry requirements, as he thought it likely that, the war would be over before the loan money ava'lablc for public works is expended. As a matter of public policy he held that it was a good tiling to alloiv the money in the Dominion to he free for use in the ordinary way for financing the individual in connexion w.th trade, settlement. and the development of the country, and that, in respect to money in large sums for Government requirements. it was Letter to obtain it from bevo'nd the Dominion. fylie Minister said that he did not agree with ihu.e who advocated that the Government should raise a war loan in New Zealand. The arrangement with the Imperial Government respecting money for war purposes was a fixed one, and under it £000,000 monthly was available. He did not think that New Zealand, by relieving the Imperial authorities of the necessity to providing this amount would have much effect in easing Great Britain financially. On the other hand, if the New Zealand Governjsept absorbed £6,000.000 of the money in tho Dominion, and diverted it from the ordinary channels, the New Zealand aoney market would be seriously affected, as would be also tradespeople and aettlers. Tho supposed advantage from keeping the interest, on loan moneys in the country would be more than counterbalanced by a high and tight money market. He was strongly of the opinion that in abnormal conditions such as war conditions are it was the duty of . tijo Government to do all in its power to keep the rate of interest, down and not to encourage it to rise beyond the reasonablo increase which has already taken place. .Referring generally to the financial outlook, Sir Joseph said that the chief thing was tho uncertainty caused by the war. Though largo profits are being made by producers, and though a largo cxcess of money was being brought into the country as ft result, it did not alter the fact that tho condition of things.was uncertain, and that there was hound to b.-> a great alteration after the war. The question was whether that. alteration would make things bettor or worse, for the people of tho Domirion. A decline in the price of tho Dominion's products would be inevitable—it was impossible to imagine war rates continuing after the cnd'df the' War. The purchasing power of tho people of the Old Country, as the outcome of the war, would be greatly curtailed. • But, as far as New Zealand was concerned at present, trade is remarkably buoyant, both within and "beyond the countrv. The necessity for keeping down ordinary consolidated expenditure was /recognised, and every effort was being mado in that direction.