GUARANTEES FOR PUBLIC WORKS.

Lyttelton Times, Volume XXV, Issue 1694, 22 May 1866, Page 2

GUARANTEES FOR PUBLIC WORKS.

TO TUB EDITOR Or TUB I/TTTELTON TIMES. Sir,—You a«k me to explain "How.it is that English capitalists are to embark their money—as he says himself,on a losing speculation—trusting to the faith and solvency of the Government, when they will hot exert that directly." I think you have unintentionally mistaken my view. I endeavoured to. explain that no railway 1 ought to be constructed unless it will pay; but if it is worth the while of the Government, aB it may possibly be, to conatruot a railway for purposes of colonisation a fow years before it will pay, the Government may undertake to cover any deficiency by its guarantee. But I hold that money raised upon a specific work calculated to produce a specific income is a different thing from money raised upon the credit of the Government, whose solvency is affected, not by the success or failure of , the'wbrk in question, but by a multitude of , collateral causes. t Yours, &c,, J. D. LANCE. Christchurch, May 21.