THE IMPERIAL IDEA.

Evening Star, Issue 15129, 10 March 1913, Page 4

THE IMPERIAL IDEA.

CO-OPERATION IN REGARD TO LOANS. [Per Uxited Phess Association.] . WELLINGTON, March 10. An interesting proposal was made to the Lmp.re Trade Commission to-day by Mr Harold Beauchamp,, acting chairman or the Bank of New Zealand, in furtherance of a scheme of Imperial cooperation. He suggested the development or the principle of a joint Imperial guarantee between different parts of the Empire in connection with loans for defensive purposes, and for improved commimications, stepping, harbors, cables, and other matters of Imperial importance. The funds for such enterprises as he mentioned could, in his opinion, no procured more cheaply under a joint imperial guarantee than under the solo guarantee of the individual partners in an Imperial concern. From the point of mew of the British Government it could ■li i- , questioned that a guarantee, with, httle or no fear of recourse, was in all ways preferable to direct and immediate payment. The interest now payable on the Dominion’s loans was roughly Ji to 4.} per cent. Thus New Zealand’s new 4 per cent, loan had been placed at about 4| per cent. The rate _ was more advantageous to the Dominion than that at which foreign nations in stage of development could obtain funds, owing to the Imperial tceUng oi the London money market, out was much more costly than the i ate which a joint Imperial guarantee would ensure. If loans could be raised at a cheaper rate under the joint guarantee of the Imperial and Dominions Governments, the result would, no said, be immediate, economy and of w> e - t0 V 1 Ini Perial organisation. V itli tins object in view, lie considered it desirable that an Empire Development Board should he created whoso functions would bo. the examination ot schemes brought forward for the purposes stated, such purposes being recognised as of Imperial value.