Mataura Ensign GORE : FRIDAY, MAY 17, 1895. SUCCESSFUL BORROWING.

Mataura Ensign, Volume 17, 17 May 1895, Page 4

Mataura Ensign GORE : FRIDAY, MAY 17, 1895. SUCCESSFUL BORROWING.

The success which has attended the floating of tbe one and a-half million loan, bas drawn forth many congratulations, which have gladdened the Government. No doubt, the country generally has reason to be pleased that the money has been got so cheaply. So far as this loan is concerned, we should rejoice as heartily as. any, if it were the last of our borrow* ing measures, We have reason to fear, however, that the present success trill only encourage more borrowing, and hasten the crisis which the Government policy tends to bring about. The Colonial Treasurer has been talking of a general conversion scheme, by means of which the total amount of yearly interest may he lessened, bat necessarily the total amount of the Colony's indebtedness will be increased. Evidently the Treasurer has little regard to the interests of posterity, who will have to pay this increased debt. We cannot see how suoh conversion cau take place without leaving the bondholders iv a position to receive as much interest as tbey are receiving at the present time. If they hold bonds current for a number of years at 5 per cent., then if they are converted into bonds at 3 per cent., eaoh LIOO would require to be converted into L 166, to enable them to receive their yearly interest of L 5. If, on the other hand, the time during which suoh 5 per cent, bonds are current is now about to expire, the Government will gain by borrowing the money at 3 per oent. and paying them off. For bonds which have many years to run, we cannot see any advantage from conversion sufficient to justify the increase of indebtedness which the country must how incur, and in due time pay. Instead of resorting to every possible sohsme for increasing the debt of the country— which appears ta be the Government's policy— it would be much more satisfactory if the yearly surpluses of which the Government boast so much beforehand, were used — so far as they have any existence in reality — in lessening the publio debt. People would then believe that there was reality, that is to say, hard cash in the surpluses. It is, of course, an easy thing to manufacture a surplus on paper. When money is borrowed and counted as ordinary revenue, and liabilities outstanding are left unnoticed, it does not require great expertness in figures to show a good surplus. In whatever way this regular surplus is accomplished, the fact stands forth in all its hideous aspect that every year the country's debt is increasing. This additional loan, effected ou terms easier than were expected, will, we fear, only afford encouragement for further loans, unbss the country wakes up in time to see its danger, and set its tace against it. Our members who went to Parliament pledged to vote against increased borrowing, but, like the Government, cast all such pledges to the wind, should havo discovered before this that the country does not regard such conduct with favor, j By following the tactics of last sossi&i/,, ! and voting just as the Government orders \ them, they may secure their seats till the statutory time for dissolution arrives, but the oountry will theD gi*e effect to its opinion of their actions. It will be found, we expect, that the silly attempts made to hoodwink the country into ( believing that borrowing is not borrowing, will not succed with men who use their own judgment, instead bf obeying the imperious dictates ot their masters* CHINA AND JAPAN. The termination of the war waged during the last eight months between these two Powers will be viewed with satisfaction for many reasons. _ On humanitarian ground b all should rejoice at tho cessation of the carnage and destruction of property affecting the belligerents. But the possible wide-spread results to which it might have led, affecting the nations of Europe, which are now averted, afford a closer and more selfish reason for satisfaction. While the war continued, even the shrewdest observers could not foresee that it would terminate in peace without the forcible intervention of some of the great Powers of Europe. In regard to the terms of peace, there has been a protest by Russia, Germany and France against part of the continent of China being given up to Japan, although China had given its consent. Happily, Japan has yielded to this remonstrance without venturing to contest the point by resort to war. How near an approach was made to it is not known, but without doubt these Powers were ready to make a determined stand had Japan not yielded. As it is, the vast country of China is still under the dominion of the Chinese Emperor, while his yielding up ( <?f Formosa and the Pescadores Islands to /apan will not greatly affect him. The inqLen^ity which China has to pay, will no£ greatly disturb i» The fact that the European Powers we have named are left in the same state as before this war, without annexing territory, which might threaten JJritish interests, is of special moment to all jthe Australasian Colonies. Had Russia engaged jin hostilities, then there is little doubt that it wonjild have secured territory, where it could have maintained a fleet mi &JI the munitions of war mjjoh nearear to Australia and IjTew Zealand than Siberia, its ooljf outlet at present into the Southern Ocean, fhe opening l up of China to a much greater e^ent than before for traffio with foreigners, which Japan has secured both for itself and other nations, will confer much beae£t froth pn China and the nations who wijj trade vfrh % By this war, .jFapan wjs established itself as a naval Power rtcfc jbjjp world can no longer disregard. It is #u#e, possible, too, that the dear-bought experience of China may rouse it to prepare for fot#.rs contingencies, by following the example ojf £apan in training its army and navy ip European methods of war. If it throws aside jts ifppli^h allusivepes* &nd fancied superiority to all, •" Barb&ria«V' an£ *> hke avails itself to the fullest extent of the instruction and guidance ,of J^ropean officers, it maybeconaeone of tbe most formidable | Powers. Ehis is a resu.lt which the, world need nofc bo eager to see. $Tith j tbe elements of unrest which the world ! now presents, and the mighty £eets anijl ; armies waiting ready for the fray, we are pleased that China, and we may hope Japan also, will not be participators—-

both having had enough of fighting for some time to come.