WAR AND FINANCE.

Hawera & Normanby Star, Volume LXVIII, Issue LXVIII, 23 October 1914, Page 5

WAR AND FINANCE.

BANK OP ENGLAND LENDS £400,000. •

[JBr Telegraph—Speoiai, to StXtvl WELLINGTON, Oct. 22: V

The Minister of Finance "(the Hon. Jas Allen) iriade a statement this afternoon regarding local borrowing and the country's" recent financial transactions in London. The maximum amount which be borrowed under the Advances to Workers' ; branch will, ho stated, be increased at once from £350 to £400. This was done to meet the complaints that, owing ±o lack of building; a mtmoer of carpenters were out of work.

Sir J. Ward: What about the settlers' limit?

The Minister replied that this was £500 ; The local authorities, branch was not in the same position as the other lending branches, which made a profit ; but as it had been repressnted to him by the Minister, of Public Works that local authorities \vould not be able to expend their £ for £ s *jsidies on the public works estimates unless they were a,ble to raise a loan, they would be allowed loans up to £1000. Possibly this limit might be raised when the Government knew the outcome of the loan due in December and when it knew what were its own requirements. Public works must-be kept going. •

Mr Allen . said he was in close touch with the High Commissioner over the raising of loans, and he was advised that they would not be able to rais& money by stocks or debentures under existing conditions. Ml that could be done would be to provide ,for immediate requirements by the issue of Treasury bills in London a procedure which was authorised by an Act of this session. In this way the loan coming due in December and the requirements for, the coming year could be provided for.

Sir Joseph Ward remarked that unless the Minister mentioned how many-local bodies received assistance Ins statement carried no weight To advance £1000 to one body would not do much good to the rest. He did not believe there would be much difficulty m getting money in London so long as adequate interest was paid,, and only short-term loans were attempted The Minister of Finance replied that £136 ; 280 was paid put in loans to settlers <for the month ended September 30th, and notwithstanding the £500 restriction, the loans to settlers authorised totalled £38,165. During the month, In the workers' branch, £30 135 was paid over and £14.740 authorised. Local bodies received . £41,280, and fresh loans authorised during the ;month amounted to £1500. ' '

The Minister went onto state,that fhe Government had received £400,000 from London for the loan - account. That money had not secured from speculators, but had been advanced by thrßank of England at a r^-fcg of [r^ terest which he was not at ."liberty tb disclose. - 1 .

.Mr Myers:' The -New: South Wal-s Oroyernment mentioned that it had paid 5J per cent. s

The Minister rgplied that New Zealand did better/and he would be glad to show the former Treasurer confidentially the terms on which the Treasury bills for six months were*'obtained. These wojild be met by a loan which the Imperial 'authorities were going to raise, which would include sufficient to pay back the advance by -ho Bank of- England.. It was highlygratifying to be able to" make such "a report to the House; and- he ■ could safely say that no Dominion was -.in a. more satisfactory position.