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DOMINION FINANCE

"POSTHON SOUND,"' SAYS THE MINISTER. Complete confidence in the connections of the Dominion's public finances was expressed by the Minister of Finance to an Auckland interviewer on Saturday. " Considering the times we are in, the financial position of New Zealand is especially good," Mr Allen stated. "There can be no question about it, and I have no hesitation in saying that eo far as the finances ot the country are concerned there can lie no comparison, between the conditions today and the conditions we found when the Government took office. The position is unquestionably better, especially the condition of the State Advances and the Public Works Fund." Continuing, Mr Allen said the Loan Bill would be introduced iu the House of Representatives on Tuesday, and he would tlieu make an important statement regarding financial matters. Recent criticisms of the Government's borrowing policy would he answered by a, complete review of their loan operations in comparison with the transactions of their predecossois. A statement of the present condition of public funds would be given, and 1.3 would also discuss the prospects for the future. Mr Allen explained that the expenditure for military purposes was met by funds raised through tho Bank of England on Treasury bills on very favorable terms. Sufficient funds remained from last loan to continue public works, and since the latter were of essential importance the reduction in the advances to local authorities and others had been made so that the balances in these funds might be temporarily used for public works. The position in regard to the unconverted portion of the Ward four-million loan, amounting to £3,200,000, which matured in December, was not satisfactory, as the attitude adopted by the subscribers of the loan made it* necessary to raise a new Joan to repay the money. The holders of debentures refused to renew them, to convert them into stock, or even to sell them, so that the loan would have to bo repaid. Mr Allen said he expected it would be necessary to obtain the money to repay the loan by issuing Treasury bills. The Mother Country was £oing to raise a loan next year to "pay off the Treasury bills which she was now issuing at the rate "f £15,000.000 a month. Mr Allen stated : "We have every reason to believe that the Imperial authorities will make provision in that Joan for the requirements ot New Zealand, securing for us a sufficient amount to enable us to pay off our Treasury bills, in addition to the loan for which the Government are securing authorisation. That loan will probably be for a long term, but in any ease we can be quite certain that it will be raised by th? Mother Country on more favorable terms than anyone else will bo able to secure."

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/ESD19141026.2.61

Bibliographic details

DOMINION FINANCE, Evening Star, Issue 15633, 26 October 1914

Word Count
469

DOMINION FINANCE Evening Star, Issue 15633, 26 October 1914

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