THE PUBLIC DEBT.

Lyttelton Times, Volume CXX, Issue 15180, 18 December 1909, Page 5

THE PUBLIC DEBT.

* I TO THE EDITOR. 1 Sir, —Some people think that Parliament is doing nothing. This is a great mistake. The Government is borrowing just as much, money as it possibly can, and the Opposition is helping it. On November 16, speaking on the Budget, Mr Massey said:—"ln the short session wo authorised the Government to raise £1,300,000 for public works purposes. This year we have already authorised the raising of £1,000,000; for the Dreadnought we are expected to agree to the raising of £2,000,000; for advances to settlers during the current year, £1,500,000; for advances to workmen, £500,000; for land for settlement purposes, £500,000; for loans to local bodies, £500,000; for mining advances, £20,000; for Native land for settlement, £500,000; and that is not all, because there are several _ minor items which are not included." Mr Massey does not give the grand total, which amounts to £7,820,000, and "that is not :11," for we do not know how much more may be authorised in the next three months. I have just discovered, from the re- < port of the Bank of New Zealand last June 18, that local bodies loans to the extent of £1,410,600 have been raised in London since June, 1908. This amount was not included in tho £4,484,637 increase of the public debt for the year, as given by Sir Joseph Ward in Parliament 1-st June 15. bo it is quite possible that the real increase of tho public indebtedness of the dominion last year was over £6,000,000. And if the local bodies last year required £1,400,000 from London, besides £250,000 of post office savings bank money, it is not likely that the £500,000 authorised for this year will be sufficient. But while we are increasing the public debt at this rate, it ought to require no expert to say how we are getting the money. Where is the <rold? Or where are the. imports instead? There is an old caricature called "The Lawsuit," which represents the plaintiff and defendant, one at the head and one at the tail of a cow. engaged in a tug-of-war. Meanwhile a clever lawyer in his wig is milking the cow. This picture shows the Government and the Opposition: the leasehold and freehold parties. All the time the capitalist is getting the profits, especially the foreign or absentee capitalist. We arc borrowing no more sovereigns because we do not want them, and if wo did, England could not spare them. The Bank of England return for November 5 last shows that, deducting the amount of the notes in circulation from the gold in the bank, there was not £1,750,000 remaining. A London • telegram of November 11 says that " Mr F. H. Jackson, in his presidential address to tho Institute of Bankers, emphasised that the country s currency now consists of cheques. Ho was glad to think that bankers recognised that stronger reserves of gold were desirable to protect this currency. Ho added that those supplying tho currency should provide the gold reserves. I would add that the people of New Zealand who supply the securities, and who have according to the New Zealand bank returns, over five millions of gold, should supply themselves with a few blank cheque books, a State bank, cash credit books, bill of exchange forms a roal Treasury and State coffers for the safety of the gold reserve and securities. Why should we pay interest for tho credits, cheques, bank notes and bills of exchange of private banks, or exchanges on their cheques or charges for keeping accounte? Why? Why? Why P—l am, etc., J. MILES VEBRALL. Swannanoa, December 9. .