The Evening Star THURSDAY, MARCH 20, 1913.

Evening Star, Issue 15138, 20 March 1913, Page 6

The Evening Star THURSDAY, MARCH 20, 1913.

The Prime Minister’s recent comparison of tho last throe loans Three Loans, floated by the New Zealand Government has provoked Air Arthur Myers into a reply, which was communicated to the representative of an Auckland newspaper. During his brief career as Minister of Finance Mr Myers had a most unenviable task. Xo sooner did lie assume office than lie was faced with a most harassing absence of ready money. Tho temporary arrangements for carrying on made by Sir Joseph Ward were of such- a tentative nature that Mr Myers had the alternative of renewing them or of floating a fresh loan. Tho money market was not favorable to borrowers at that time, but Mr Myers considered it preferable to adventure upon it rather than extend the temporary arrangements existing when he took over the Treasury reins. He, however, did not really seek more than temporary accommodation when ho did borrow-, the chief difference being that he secured the money on the open market instead of by private arrangement. Mr Mydrs claims that he did tho right thing—first, in going on the open market instead’ of continuing an evidently expensive hand-to-mouth arrangement ; and second, in preferring a short-dated to a long-dated’ loan. About his first contention there can probably he no dispute whatever; as to his second, opinions may differ, but lie adduces in support the counsel given by the Government’s financial advisers in London and the opinion of the London ‘Times’ that “tho course adopted was “probably the best way out of a difficult position.” Air Alyers does not advocate the short-dated debenture as against the long-dated loan, but he argues that appearances at the time were all against the success of an issue of the latter sort; and as to the cost of his 4J— million flotation, he points out that, if it does exceed the rate at which Mr Allen secured his money, the slightly higher interest payments only extend over a currency of two roars, at the end of which a more favorable market may facilitate its renewal or conversion on terms more favorable to the Dominion. Further, contends Air Myers, the easing of the situation which followed the securing of 4-i- millions to tide over imperative wants placed Air Allen in a much more favorable position to negotiate for the future; Air Alyers was hard pressed, his hands virtually tied; Air Allen was comfortably situated by comparison, and was more able to pick and choose. Probably there is a good deal of truth in this, 'faking Air Myers’s own version of the case, it amounts very much to this: That’for the leaky makeshift to which Sir Joseph Ward had ultimately resorted he (Mr Alyers) substituted an efficient tcmpoian shelter in a time of stress, pending the erection of a permanent structure, which it has fallen to Air Allen’s fortune to supervise. Evidently the designation of Mr Mackenzie’s Government as the “Stop-gap” Ministry was as applicable in the internal as in tho external aspect.