New Zealand Finance— Serious Reports.

Evening Post, Volume LXIV, Issue 119, 15 November 1902, Page 3 (Supplement)

New Zealand Finance— Serious Reports.

LONDON PRESS COMMENTS: (FEOM OTJK OWN COKRESI'OXDENT.) LONDON, 4th October. Under the heading, " New Zealand Finance — Serious Reports," the Financial News, on Wednesday, referred to what At termed " questionable expedients employed by the Government in the colony's acqounts." The writer remarked : — " The other day there was a tejegram in The Times stating that the AclingTieasurer of New Zealand had refused to infoim Parliament how the Government ii as raising the new loan. He added,- however, that the Government could afford to ' snap its fingers ' at the London money maiket. Can it be that the 'boot is on the other leg'? Is the London money market inclined to snap its fingers a I New Zealand? At any rate, a position of some gravity is gradually timing in the finances of the colony. It appears that in April last requisitions for the expenditure of £29,000 were passed by the Audit Office of the color.}- ; but there was some difficulty in finding hinds to meet the payments. Section 10 of the Public Revenues Act of 1900, however, enabled the Government to get over the difficulty. Under that sertion the public revenues received by the Post Office are at the disposal of the Government without check, and -recourse was had to that law to 1 get the money and avoid the audit. Ihis might have succeeded but for one important facS? — viz., that the unauthorised expenditure" was already up to the limit. The payments were mnde, but not included in the public accounts for the quarter. The amount should .have been included in the unauthorised expenditure ; but that was impossible, owing to the fact that the unauthorised expenditure was already up to the limit. " The disclosure, as the New Zealand Herald says, has a somewhat serious aspect ; for it now becomes apparent that at the end of the financial year this clause of the Act could be utilised to manipulate the accounts in such a manner as to ' manufacture ' a surplus out of an actual deficit. 'This could easily be managed by the simple expedient of making large payments in the month of March, and not bringing them to account in their proper year.' The New Zealand Government has now announced its intention of bringing down a Bill which, it is understood, will further curtail the powers of the Audiror-Gene-rnl. Such. a plan would, no doubt, be of great assistance to Ihe Treasury in any temporary difficulty, though it might eventually land the colony in serious consequences. It is not easy to see how an Auditor-General could retain his position in such circumstances. It is unreasonable to expect an effective audit from an auditor who is bound and gagged. If the creditors of New Zealand expect it, then they are likely to be disappointed." . r "Writing on tha same subject, the Wobe, in its city article, says:— "lt will be recollected that some short time ago a- Times telegram announced that the Acting-Treasurer of New Zealand had refused to inform Parliament how the proposed new loan was to be issued. Ihis may have been at the time an act of discretion, since it is not usual that legoliations of such a delicate character fhould be made public, but when, as has bean announced, he was prepared to snap his fingers at the London money market, there may be grave reasons' for believing that his position is not so strong as he imagines. We rather think that the return of Mr. Seddon may dispel this illusion, and that ' honest Dick ' will be able to show that the English investor has many substantial grievances in niatters relating to New Zealand financial operations, notably her banks and hsr harbours. Some serious disclosures have been made in the New Zealand Herald Avith reference to the position of the Government accounts, which may well cause would-be investors to pause."

It is stated by the Government Botanist of New .South Wales that the spread of mistletoe is likely, ere long, to be regarded as a national question in Australia. The parasite is reported 'to be destroying trees and other plants-