THE COUNTRY'S CREDIT.

Dominion, Volume 2, Issue 422, 3 February 1909, Page 6

THE COUNTRY'S CREDIT.

;; Oub correspondent "Economics}", in returning to-day to the question of the country's credit, insists upon the- ; fact that 'what is concerned about is the ■fact'that the credit of New; JHoalanclt though it is still quite 'good, is far from what it was when "Liberalism" was in 'its 1 youth. That' is the fact of which the ■ country; must be constantly reminded so long -as Sir Joseph Ward is in office; and, as our correspondent suggests in effect, harm rather, than,good must' result from the anxiety I 'of,' the. Government's friends to represent as traitors thoso who call'attention:to the facts relating to the country's finances. It is very.much bet: tertomake the public; aware of the,'drift of ,the situation while there isiyet time to :stop on the side- of 'safety than; ; by .'silence;.' to encourage .the Idrift until the point of safety, is past.' We can best illustrate the changed state of affairs by setting off against the fact that the new seven-year 4 per cent, bonds; only; realised lOOjt to 101 some observations by,.Sm Joseph Wabd in his: Budget for 1895. In that Budget a great .'deal of space' is' to the success which attended the flotation; of a.'3 per cent.; loan, the price of whioh was £94'8s. 9d. ; , and the Treasurer ;rejoiced also over the decrease in : the net indebtedness of the people; 'per head. There was therefore a little excuse for,the Treasurer's roference to the "pessimists." '"It would seem;"'he said, "almost a hopeless task to attempt to convince these detractors, of New Zealand of their folly?' Can it be said that Sir JbBErH-has,the same excuse for his attacks on the ''pessimists," as he insists on calling .them, when the public ihdebtedness.'per head has increased by nearly 25 per cent., and when new 3 per cent, loans are unthinkable at any, price, and 1 out 4 per cent, bonds bring in less than the Queensland and West Australian 34 per. cents, that were mildly jeered at in tho Budget of 1885 1 Can it be said that Sir Joseph has taken the best course to "con-: vince the detractors of New Zealand of their folly"? --In the Budget from we are quoting he seoms to have had, in mind a scheme for effecting this interesting operation, for he boldly stated that the time was approaching "when it would add to the stability of the country . /. if we would resolve to make a moderate sacrifice in providing with; our annual interest a small payment.to enable.the loan to bo extinguished within a reason r able; period. ;... . If wo realise to tho full tho advantages that would follow a general conversion of our stock 'into! 3-por-cents;; and utilise the large saving to repay our indebtedness, the ability .of the taxpayers to provide tho redemption fund would not be taxed beyond present limits. -■'. '.;"■'. Whilo' posterity . . . should bear & full! share of tho burdens created,.to make the country, still, as prudent men' we should, while recognising -the necessities of ' the times.in. which we livoi endeavour to make our legacy as light as ppssiblo for those who will fol-

low-us." The public debt stood then at £40,386,964: it has sinco been increased by just over £26,000,000. Sir Joseph Ward should prove interesting if ho would, explain what has changed his ideas sinco 1895, or, ,if they are unchanged, how ho accounts for his' satisfaction with a position which \a 1895 he would obviously■" have -regarded as bad beyond belief.-, .■.'...-■'.