THE FINANCIAL PROBLEM OF NEW ZEALAND.

Dominion, Volume 2, Issue 544, 26 June 1909, Page 3

THE FINANCIAL PROBLEM OF NEW ZEALAND.

Sir,—The public' debt ,of New Zealand is £62,000,000 at,: say,. ; 3i per ..cent:, which means that we'have to pay.£2,170,000 every year until the ;debt is'paid off. Experience has taught-us, that," instead of the public: debt decreasing it is-absolutely increasing. Now,; I would like to;-draw the, attention of, tho public to • the fact that in 50 years time-wo will have, paid and we :will still owe the .£62,000,000,, I have now, I think,; shown;* every right-thinking man and .'woman that; this everlasting borrowing policy isa ivery.Vbad one'i for.'.New Zealand ,and a very goodlohe for thejmoneylendors' m;;the,,old Land,.,-1/ now wish to set before you "a scheme that' would eventually clear the National, Debt,and build up a surplus in our' Treasury, if worked by honest men,.';-.".' ;;'/ •"■."■. ;

(1) The first thing,:"to do. is to establish a' mint and ; corh our'own ■ gold, silver, and copper. .-': : -V.. _f.'■':;: ' ;' :; :- ;..-/■■-. (2) Establish , exchanges ..'-at the chief centre in New "Zealand.'

•V (3) The gold coined in the' mint' to.be dfcposited in tho.'Treapry, pajpgr .notes to be made equal to .the;amount of/gold in the Treasury* these; notes to go' into' circulation in New Zealand, and anyone,wishing.to: send, : money, to the Old'lliand,'or' any i,other oountry, only, needs to go to the' exchange*, where ho can; got gold for tho notes or a postal ordor,-and ;any gold.coming into [the country for mutton, wool, or, other products goes through',the;exchange* where they issue noted; for the amount,'.and these notes are made- good -for circulation in New Zealand only.' .-.. V; •..'.' '"'%■■ V- ..:;■; •-•'•'.vVV;--.- ;, By this-method say ,'£2,ooo*ooo-came: into the oountry in gold. i; The "Government could issue : £2,000,000 in, japer'i money.-" This would'.' practically.' mea'h' ! '"that, ' £4,000,000 would be available','for circulation. We send ,out of this country about-40,0000zl of gold a month.-Now, ifweibought the 40,0000z.. it would ; cost : u'5~,£175,000, ! and; we could manufacture* £240,000, or a profit of- £65,000 a month -a year, : tainus : about £10,000 working expenses.T'Thiswould'leayo a'clear' profit- of £770,000, a•;'year,.- without counting .silver - and • obpper oomage, on which there' is a; .yerj*; much greater..profit than on gold. If we;weret6;:uso th6'£770,000 to' pay the public debt in 60-yeare,-we would' have paid over £42,000,0d0; leaving' a balance'of only -£20,000,000"; - :' : ':/';': ;": , I do not say we shbuld'.do;this.;'• It\wonld bo bost to;; expend this '"money,'on roadirig tho backblbcks and ppenirigVup the land for close Settlement, -•'-;' instead ;•;of 'V borrowing money f rom • money-len3ers .on- which ,we have ,to pay interest, commissions," 'etc.—l am, etc., .-., -, ::■.:£ NEW; iZEALANDER. ; " June 18. .'..,'.■.-...-■ .-•..'; ,■.■:-..'. ,-■:,;' ;,-'■ '■'■r*-<'