New Zealand's Credit,

Evening Post, Volume LXIV, Issue 119, 15 November 1902, Page 1 (Supplement)

New Zealand's Credit,

A PESSIMISTIC VIEW. (FROII OUR OWN COMIESPONDEiN'T.) LONDON, 26th September. On Tuesday last, in the City, I met a gentleman who has considerable experience of New Zealand, London, and European financial .matters. The views he expressed with regard to New Zealand finance were pessimistic, and, as some may think, extreme, though they are those held by not a few- .people in financial circles here. " How stands New Zealand credit?" he said. " Why, down. The Government have been interfering it> so many diiections. There is the Manawa^u Railway — they have been interfering with that ; then there is the New Zealand Midland Railway. To my personal knowledge, New Zealand business has been refused because of the latter." " But the shareholders have lost i&ll through the Courts," I argued ; " that shows the colony was legally right, and now all the bondholders can expect is what is given them as an act of grace." " I know that," was the reply ; " but they do not get the act of grace. Look how the amount offered was got at. It is nothing new for New Zealand to say that the line could never be expected to pay and it was unwise to- build it. That has been part of their case as reported here. But when the thing came before the Colonial Parliamentary Committee, all sorts of evidence was given to show that the Government had lost in the way of tourist and other traffic, and that sort of thing, because the line wasn't gone on with. This was estimated in figures which ran from anything like £100,000 to £1,000,000, notwithstanding that a High Government personage had expressed his astonishment that it had ever been exploited, as he could see no use for it, either for tourist or general traffic. Then, also, the New Plymouth Harbour Board bondholders had grievances which they had to place in the hands of the Corporation oi Foreign Boadholders — a most influential body, of which Lord Avebury is President. Then there was Sir J. G. Wai d's loan of 1895 ; that was ' earmarked ' for railway purposes. But is was diverted — other Departments borrowed it." " Are there any more grievances?" I asked. " Look at New Zealand's mining legislation," came the reply. "While the foreign companies lasted out there was a new Mining Act every year — all designed against the foreign capitalist. In, fact, -Mr. Cadman, who is here now seeking foreign capiial, is stated to have held and expressed the view that New Zealand didn't want the foreign capitalist. Whether that be so or not, it is certain that that was the impression conveyed to London, by the everlasting mining legislation of the New Zealand Government. No sooner was the foreign capjtal landed on a New Zealand wharf than half a dozen different Government and municipal departments were dipping into it. There was a license for this, and a license for that, and a license for something else. What is the result of all this? Last year New Zealand wanted to raise a loan"; the underwrite™ got landed with 46 per cent, of it! That shows you that the ciedit of New Zealand has gone to Sheol. These are the things you meet at- every hand's turn when you want to do anything for New Zealand." '• Hold a little ! You have been talking of New Zealand mining. Surely you don't put the whole blame for the tosses that have been made on the shoulders of tlis colony?" " No," was the reply. " But you must remember, too, that a great deal of money sent to the colony went there on the strength of Government reports and official Blue-books. Don't forgei, mat. The colony and its Government should leain that if they want English capita l they won't get it unless they altci their ■nays with regard to the investor." Latei on, I came across the Hon. A. J. Cadman, who, as all New Zealanders know, is now in London, negotiating for British capital to develop the ironsand and other mineral resources of the colony. He expressed himself still (sanguine of bringing the negotiations to a successful issue. I a*ked him if he had heard anything of the New Zealand Midland Railway matter, for instance. "Haven't I?" he replied. "Why, it was for that, partly, last year that 1 refused to let a company be brought out to deal with the property 1 have in my hands. And I heard, too, of the underwriting of the New Zealand loan. But, as a matter of fact. New Zealand bonds stand as high in the maiket as ever. The. underwriters have sold out at a premium and made a pot of money over it." "Then with regard to New Zealand Mining legislation?" " Oh, yes. That has been made a 'scapegoat of. But who knows better thar I do how money was frittered away and wasted. Then, in " order to shield themselves, people came back here and blamed everything and everybody but themselves."' " Then, have you heard anything of Labour troubles?" " Yes ; I have heard plenty about them. But, as I have pointed out here, we have far less Labour trouble and strife in the colony than they have even here." After this, I need hardly add that Mr. Cadman does not sliaie the pessimism as to New Zealand credit in London manifested by my first informant.

Jasper — "What are you looking so annoyed about?" Mrs. Jasper — "I expected a day's rest, and didn't get it. This is the cook's day out, but she insisted in staying at home."'