NEW ZEALAND'S FINANCE.

Hot Lakes Chronicle, Issue 115, 15 February 1895, Page 4

NEW ZEALAND'S FINANCE.

If the colony can borrow at 3A- per cent to lend to others, why is ii offering to pay 4 per cent for the money required for its own use ? This is one of the puzzles of the Financial Sfcatement. The Treasurer seems to anticipate no difficulty in raising a million and a half in London at 3} per cent to re-lend to farmers, yet a few weeks ago lie asked the colony to give its guarantee, plus the security of the Bank of New Zealand, to a loan of two millions at 4 per cent, and iu the Budget he proposes not only to raise a million or two for colonial uses at the highest rate of interest, by consols, etc., but he, actually offers to guarantee the in - 1 eurance companies 4 per cent for money in several other directions. Is ■* not this bad finance and an unnecessary waste of money? Why should the New Zealand taxpayers pay 4 per cent if their requirement:can be. met at 3£ per cent? What private individual would think of taking his paper to a private discounter to melt if his banker was prepared to discount at current rates ? If anyone did so what would the Official Assignee say when the inevitable goal of bankruptcy was reached ? Surely the Treasurer of the colony should, like a private individual, seek to obtain what money he wants through the ordinary commercial channel of a direct loan at the lowest rate of interest the credit of the/ - can /omraand, instead of Rinds of _ I T7"cessi\ e rate j J ct is o ne of _ j serves the conFarmeis. , intelligent aud oinumnity.—Welling-