NEW ZEALAND FINANCES

Evening Post, Volume XLI, Issue 83, 9 April 1891, Page 4

NEW ZEALAND FINANCES

HOW WE ARE MISREPRESENTED AT HOME. Tho Lyttelton Times London correspondent, treating of the above subject, gays :— Every city newspaper stall on the morning of 17th February had on one of its placards the following startling line as part of the oontents of one of the financial organs :— " New Zealand's bad faith." On getting a oopy of tho paper, I find a couple of colnmns of sevoro denunciation of the advertised conversion of loan balanoes The writer contends that, according to the prospeotnsoa, on tho representations of whioh the money was lent, an arrangemont by way of a 2 per cont sinking fund was promised, whioh would praolioally pay them off as thay foil duo. Now, says tun writer, wo see tho worth of these promises ! Hero is an anblashing nppoal for new loans to pay off tho old ones, and not oven an apology for the broken faith. "We ask Sir Francis D. Bell and Sir Penrose Goodohild Julyan," oontinnea the writer, " the Government agents here, to explain why it is now necessary to oonvert these kinking fttnd loans, and ta say what has become of the sinking fnnd moneys?" The artiole winds up by offering New Zealand oreditors two pieces of advice. " The first is this : By forwarding their debentures for conversion they will sot a distinot premium on oolonial bad faith and vioiona finance ; and, seoondly, by demanding payment on maturity they will be enabled to suit themselves with far safer investments, bearing the same, or a higher, rate of interest." »ÜBTHKR COMMINT. However much we may despise these financial organs — and it is impossible to despise them too much, as a £25 advertisement will change their curse into a blessing at any time— it is nevertheless a pity that the British publio are not taken into fuller confidenoo by the New Zealand Government in money matters. For inBtanco, when, a<i was tho case a short time ago, it was deemed desirable to discontinue the annual sum set apart for the sinking fund, the bondholders should have been advised of it, and an offer should have been made to pay them oft' if they objeoted to the arrangement. It would eeem to be the npeoial vice of Colonial Governments to ignore the inviolable sacrednees of a business compact. Hence the power of an English paper to flaunt such a statement as this before the publio — "Here is acolony whioh in 1863 came borrowing on the assurance that a provision has boon made by an Act of the Colonial Legislature, for the payment annually to publio ■ trustees appointed in this oountry (England) of a sum equal to two per cent, on the I total amount borrowed, for the formation of an accumulating fund for the final liquidation of the debt; and yet in 1891 the publio are asked to contribute towards » million pound* loan due this year, pretty veil a' third, in order to its disoharge; that is to say, the assurance of & final

liquidation b. V a sinking fund turns out a delusion and a enare." I have no doubt that Sir F D B«H treata thcae constantlyreourring char* es against our good faith with a justifiable neo. m; but all the same, it is not nice reading for New Zealanders to be told that our defaul ting is only a question of time "That s.he will default, says this oity organ, "in time almost everyone now believes ; but cert ainly few people could have been prepaied for the BnrprHea now allowed to escape from P»i d ° r & B casket.