DOMINION LOANS.

Hawke's Bay Tribune, Volume III, Issue 73, 10 March 1913, Page 4

DOMINION LOANS.

IMPERIAL DEVELOPMENT EXPENDITURE. JOINT IMPERIAL GUARANTEE. PROPOSED BY MR. HAROLD BEAUCHAMP. Wellington, March 10. An interesting proposal was made to the Empire Trade Commission today by Air. Harold Beanchamp, act-ing-chairman of the Bank of New Zealand. In furtherance of a scheme of Imperial co-operation, he suggested the development of the principle of a joint imperial guarantee in connection with loans for defensive purposes and for improved communications (shipping, harbours and cables) between different parts of the Empire and other matters of Imperial importance. Funds for such enterprises as he mentioned could in his opinion be procured more cheaply under a joint Imperial guarantee than under the sole guarantee of individual partners in Imperial concerns. From the point of view of the British Government it could hardly be questioned that a guarantee, with little or no .fear of recourse, was in al] ways preferable to direct and immediate payment in aid. Interest now payable c;> the Dominion’s loans was roughly four and a quarter to four and a half per cent., thus New I Zealand's n: w four per cent, loan i had been placed at about four and 1 1 hree-eighlhs percent., a rate more I advantageous to the Dominion than i that at which foreign nat ions in a i Mage < f development could obtain I funds, ow ing io the Imperial feeling li t t'lo Leede!) money market, but it ! was much more costly than the rate I which a joint Imperial guarantee | would ensure. If loans could be i raised at a cheaper rate under, the ■joint, guarantee of Imperial and Doj minions Governments, the result would, he said, be immediate economy and obvious servier to Imperial organisation. With this object in view he considered it desirable that, an Empire Development Board should be created, the whole functions of which would be the < xaminafl’on of schemes brought forward for such purposes as he had stated,, such purposes being recognised as of Imperial value, and if npproxed, the service of loans issued for the special works duly specilied and duly limited would lie guaranteed by the Mother Country and the Dominion Governments.