IN THE EARLY DAYS

Evening Post, Volume XCII, Issue 55, 2 September 1916, Page 6

IN THE EARLY DAYS

THE HARD-UP NEW ZEALAND

GOVERNMENT.

(BI TELEGRAPH.—SPECIAL TO THE POST.)

AUCKLAND, This Day. People have been so accustomed to New^ Zealand raising loans outside the Dominion that it is probable few are aware that the present war loan is not the first that was raised in the local market. The Star points out that old newspapers furnish some interesting facts of what happened in the early days. In 1845 the Government was compelled to raise money by issuing debentures, which carried interest at the rate of 8 per cent. At a time like the present, when people are subscribing freely to a war loan.for which they will receive debentures and certificates, it is ; of interest to note that in 1815 debentures were forged, which resulted in a loss to the Government of £250. One man was caught and sentenced to ten years' penal servitude for having forged a debenture for. 20s. In those days people's ideas were modest; in the matter of loans. The Government, had.issued debentures for £6000. The Government had to face a financial panic shortly afterwards, owing to the fact that the Horns autho rities_ notified that it had no authority to raise that £6000 by the issue of debentures. The seriousness of the financial position may be estimated from the fact that the colony was staggering under the enormous indebtedness of £14,000, and that the cash in tho Treasury amounted to £19 10s 3d. It was, however, true that the Government had a credit standing in the bank at that time of £3 Is 3d. Fortunately South Australia had a surplus of £6000 that year, which was lent to the New Zealand Government to enable it to tide over the crisis.