The Daily Telegraph. WEDNESDAY, SEPTEMBER 27, 1882

Daily Telegraph (Napier), Issue 3502, 27 September 1882, Page 2

The Daily Telegraph. WEDNESDAY, SEPTEMBER 27, 1882

London Tkuth is rather severe on the loan policy of this colony. He says : — " Unfortunately a loan in New Zealand caa never be a small one, because when money is to be expended in one part of the colony, every other part insists upon its share in the plunder. Thus it comes to pass that railroads and other public works are made by the Government, which are certainly not likely to pay during the lifetime of the present generation. What amuses me, however, is that tbe New Zealand newspapers discuss the question of loans as though we ought to have nothing to say in the matter, but simply pnt our hands in our pockets, whenever we are requested by our colonial friends to do so. New Zealand bas borrowed too much and too fast. In tbe form of loans and in mortgage advances on estates, Rhe owes us quite as much as we can safely lend her. She bas exhausted her security. If she can find persons to make railroads, &c, for her, and to take the chance of these works payin? a dividend, this is the affair of those persons. But no further Government guarantee ought to tempi investors to subscribe to a new loan. The only result of such a new loan being placed will be that tbe bonds of previous loans will be rendered less valuable. My own im-

presaion is—and I was roundly abused in New Zealand newspapers for stating it— that New Zealand caunot make two ends meet and provide for her current expenditure, inclusive of the interest on existing loans, without fresh borrowing. She is pledged already to pay to us an annual sum which either she cannot or which she will not provide out of her own resources. As long as Bhe can every two or three years borrow ot her creditors, she will pay them interest on her loans."