The Hastings Standard Published Daily. WEDNESDAY, AUGUST 26, 1896. THE LOAN MONEY.

Hastings Standard, Issue 104, 26 August 1896, Page 2

The Hastings Standard Published Daily.

WEDNESDAY, AUGUST 26, 1896. THE LOAN MONEY.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

On financial matters Mr John Duthie is rightly accepted as an authority. With his native shrewdness added to natural ability and an excellent commercial training, he is fitted to speak on money matters in a manner that few can hope to rival. In his speech on the Loan Bill of the Government, Mr Duthie expressed the opinion that if the money was to be borrowed it would be better to appeal direct to the London financiers. We believe that this would be the best course for the Government to pursue ; at the same time we can see no harm in giving the Colonial Treasurer authority to raise the money locally, provided the rate of interest does not exceed the rate at which the money could be obtained in London. Even with this latitude the Treasurer will find it more profitable to seek the assistance of the British investor. The money could easily be obtained in London at 3 per cent., and we have but to remind our readers of the excellent prices obtained for the 3 per cent loans offered by the neighboring colonies of New South Wales, South Australia, and Westralia, in confirmation of our statement. Although the loan could be better floated at Home, it by no means follows that it is advisable or necessary to issue it in London. We have the experience of South Australia to guide as as to the probable results of local flotation. In the sister colony, the Government has been able to obtain money on satisfactory terms &nd at a satisfactory price within its borders, and there is no reason why New Zealand should not be as successful. It vtrald save a vast amount of cotozjiis.

sion and charges, and afford to our people an investment of the gilt-edged class. We must not, however, overlook the fact that this eolony is on the eve of a great mining development, while there are not wanting signs of considerable industrial activity, and it is doubtful whether local investors would look at a 3 per cent, security. The flatness of Consols helps to emphasise the fact that New Zealanders look for a better return than even per cent. But against these points we must set off the inflow of foreign money seeking safe investment, and much of this no doubt would be availfor the purposes of the Government. Weighing up the whole matter it would seem that London is the best place in which to raise the loan, and we have no hesitation in saying that the Government will raise the money on the best terms in the best market, and there can be no danger in giving the Government a free hand to issue the loan locally if they should think proper,