NEW ZEALAND'S CREDIT.

Dominion, Volume 2, Issue 420, 1 February 1909, Page 6

NEW ZEALAND'S CREDIT.

: OfrE of our Ministerialist friends in the south has been a good doal' disturbed by the letter in which our correspondent "Economics," whoso communication we printed OmTfiursday last with some Supplementary ; 'observations of .our own, showed how the financial credit of New Zealand abroad has steadily receded under the "Liberal" administration. Wo have no doubt that our correspondent will have somothing to say by way of rejoinder, but in the meantimo we may briefly notice the kind of argument which the Government's fi'ietids have to employ in their difficult task of defending the Government whenever it is made the subject of criticism. It. will be remembered that our correspondent compared the facts that Sib Joseph Waki> easily floated a-3 per cent, loan in 1895 at £94 Bs. 9d., and that Mb. Seddon got £96 11s. for a 3 per; cent, million in 1899 with the fact :that the Governmonf could only get 100| to, 101 for the new .seven-year bonds at 4 per cent. ■ The southern journal replies by quoting Ms. 'Massey. as. having do-; clared in 1896 that £94 for our 3 pof cents, was nothing to boast of. • Wo are not responsible for; what .Mr. Massey said in. 1895; of for. What Mit. Massw or Sitt Joseph Ward oi 1 -anybody else may. say to-day. ■ We are only.concerned with facts. as they stand before tie, Our con.temporary goes on to say. that "the supply of money was.so abundant in 1896 that there: was nothing very extraordinary ,in Sir JOSEPH floating his million and.a half loan:at so good a price as £94 Be'. M." .' The high '. rate. ;of .• consols -is quoted; and: Wβ afe. presented with the fact that consols stood at lllj in 1899 and stand, at 83 : .t0-day.' 1 , Wo are then asjked to believe that , "it is iittloi wonder that colonial securities have/fallen' in: sympathy." Everybody ■oughtto know that in normal there are no-special caiises "for \ fluctuation—the pride of consols does not necessarily fitf. tho 'pricos of other stocks. Ooneols; are a special kind of investment,, resorted to chiefly .for 1 their gafe'ty , , ■ ahd 'they. ;ar"e-: ;'as. wo may- .say, a,.different commodity .altogether; from.othor stocks. And the do/tualfigiires show that NoW>Zealand.stock has , not kept timo with the , price of ; con , -, sols. In 1899 the lowest prico of consols ;Was.9B 5-lGths,' and of New Zealand -4per conta. IOoJ. '----in -1901, when consols touched '93' 7ri6fchs,;- New Zealand, stock rose : [ temporarily, so that ib, did not go. lowor than 110|. While: the lower figure for .consols rose .from 8S .to. sol between 1904 and. 1900, ,th 6 lower, figure .for' .New Zealand 4 per cents only increased by "- : \: : But, of. course, .consols have .nothing to do with the steady, if not qiiitp .regular, fall of our stocks since the ■ day wheri: Sift Joseph Waed exulted over thb Australian States .who' could not get money profit-ablyj-'as ■ ho was dding,, at '3 .per cent.; To-day he seeks for shorWatcd loans, at 4 per cent., and at. a figure that twelve years ago he would have regarded in the case.of an. Australian colony as.oyidenco ofriho'precarious state -of its .fihandial credit.'/ Tho country's, credit is .still good enough, but we'cannot believe'that it is as high as ever until we .find Sir Joseph Ward securing a , long-term 3'. per;, cent, loan'by advertisement for £96., ~; i i M.i. .- - .- • ■~. ~ . . ; ~-:::■..-■■