GOVERNMENT FINANCE.

Press, Volume LVI, Issue 16850, 2 June 1920, Page 6

GOVERNMENT FINANCE.

LOCAL LOAN POBESHADOWED.

(SPECIAL TO "THE PRESS.")

WELLINGTON, Juno 1

It is understood in financial circles that the" Government will be borrowing shortly on the local market. The last banking returns disclosed a large amount of money available in the Dominion. During- tho war tho rate of interest on loans to the Government was per cont., free of income tax. Possibly, if future loans are not to be free of income tax, some slightly increased advantages will be offered to make up for that. Speaking to a deputation here to-day, the Prime Minister admitted that there was no question of the country's prosperity during the war.

A member of the deputation remarked that there was evidence of that in the largo subscriptions to tho war loans

Mr Massey: They wgre compulsory. The member of the deputation: Wo have had the banking returns more than doublod since tho war. All this shows evidences of prosperity.

Mr Massav: Money is plentifhl, but it is paper, not gold. Tho member of the deputation: Wo want some of that paper handed Over to us.

Mr Massey: There -will be no more paper issued "while lam here. Tliero has been too much issnod. People sav: does not Mr Massey withdraw the paper? If I withdrew the pnner we would have a crisis here. We have to wait until it is wi thrown in England. It must be done gradually.