FIVE MILLION LOAN.

Dominion, Volume 4, Issue 1028, 18 January 1911, Page 5

FIVE MILLION LOAN.

WAS IT A SATISFACTORY TRANSACTION? THE PREMIER AND HIS CRITICS. (By Telegraph—Press Association.) Christchurch, January 17. Speaking at St. Kilda last night, Sir Joseph Ward said he desired to say a lit<lo on a financial matter. Two years ago there was a lime of depression in the Dominion, but happily it had been followed by a revival of trade and by a general prosperity I hat had permeated the country from end to end. An increase of >£703,000 in the ordinary revenue in nine months was something they had a right to be proud of. An increase of ,£BIO,OOO in tho revenuo for the twelve months, as compared with the preceding twelve months, was a wonderful evidence of the revival of trade. Yet there were tome people who said that the accumulations of money in the country were indicative of stagnation and of a want-of-contidence in the Dominion. Of course tho country could not go on year after year adding to its industries by leaps and bbunds, as it had been doing for the laft fifteen years. 'If New Zealand were to double its factories to-morrow what would they find? Tho proprietors would be the first to declaim against over production. It would be impossible to sell the goods, and consequently they .would not bo able to pay the recognised scale of wages to their employees, and becauso thero was an increase in the jaccumulation of money- in the country some people held it'was a sign of. weaknes-i. Ho alluded to that matter because he wished to direct attention.to..' .what was " being said by a section of the press opposed to the Government concerning, tne five million loan. Tho critics were ,rio doubt entitled to their opinions, but for good old croakers commend him to the ones who saw evil in everything the 'Government did. , The five million loan was . now forming the subject of almost agreed to concerted condemnation in certain places, but what were the facts? ■Nearly, every financial journal of consequence in England had referred to. it as a satisfactory transaction. The loan had been floated at 3J per cent, at ,£9B 10s. when the bank rate ruling in England was five per cent., and yet he had read lately in a paper published in the north an article that would lead many people to think tho bottom had dropped out ofthe country. There was a section of the press—the Dunedin press did riot come within tho category—that decried the country all it knew how, and a portion of the people who supported that sec-tion-of the press were sending their money out of New Zealand for investment, and calling public attention to That was the attitude of people who wanted to do New Zealand a good turn! That was tho way in which they were attempting to restore confidence, and to maintain the credit of the Dominion! These were the people who 'now criticised him in connection with the five million loan. In whose interests, he would ask, was the loan floated ? AVas it in the interests of the Government? In eight months the State Guaranteed Advances branch had lent out to workers, to settlers, and to local bodies, J1,500,000. The local bodies paid 31 per cent, for the money. Was there any person or firm in tho country who would give them money at that rate? It was the local, bodies, tlie' settlers, and the workers who got the benefit of the money. Only a few days ago he was speaking to' a man who was at one time paying l'i per cent. He had since borrowed from the Government at four per cent., and to-day lie was a prosperous man. It was those who years ago did' not want cheap money to be obtained for the people_ who were., now criticising the five million loan. Until this country had finished its railways, until it had made some provision for the acquirements of the lands_ necessary for tne people, and. until it had reached a point when one could say the public varies policy was about, completed, it would be necessary to obtain tho requisite moneys to carry on public works. It had to be . remembered that much of the money borrowed was being expended on reproductive wcrks such as roads, railways, and the acquirement of land for settlements. Therefore,, when they saw it stated that the Government was pursuing a wi'd course and did .not recognise what the people could stand in the way of financial obligations, he hoped they would remember his reply—that the Government knew the position, that it recognised its responsibilities, and that it was more'anxious than many of its critics to curtail tho total amount required for, public., expenditure, , but that at the same time it recognised to the fullest extent that without) borrowing money it could not carry on a vigorous settlement of people on. tho land, or give to those who went into the interior the necessary'public works already possessed by, nianj", of those who lived in settled parts. The Government would commit an act of retrogression-if it did not recognise that every pound of money borrowed had a magnificent, asset behind it, and that being so it was bound to show manly courage and unflinching determination .to borrow what 'was within reason-requisite in the general interests of the community. ' .(Applause.) The taxpayers were not, paying i'<or the rnonev borrowed by the local bodies, by the settlers, and by tho workers. The' peo-' pic who borrowed tho .money paid .the interest, and when the people desired the Government to pursue that excellent line of policy, what was the use of members of Parliament who' 1 voted for the loans speaking against '.the policv? What .was the use of a section of the press opposing what the Government wris' doing, and then finding fault with everybody but their friends? : (Applause)