THE FOUR MILLION LOAN.

Manawatu Standard, Volume XLI, Issue 9228, 29 June 1912, Page 7

THE FOUR MILLION LOAN.

HhVtiio/Hdw^ laoyiycer/wliotltfi^ •Mr :iVljwsi;'v^duld''|ive.. ; .aJi'y : , inf&mptipn/in : c'c»hf)ectidii'Vitlv : ? the liiillioik: ;i9^ri.; ;., s^r-iMyersy';;reply^nigs : sufpMsti-at':Mr. M'assey&niquesti, especially as ; die. '■'haci;liocii:/ the co ut n.t ry' endc ix vo i n<f - to' ft dut catc- the; pco p]« into:,tl'ib.• idea" thatv tlio : ,-Govt('i'niiiont; ', \vit's. ■l)ractisingUseorecy : ::abdtft ; ' ; fin'dnci[tl!;;niat'orH.. The-Government'had 'nothing;.to':,hide, : :arid, jid-asked 4hc Reform: ;,Parfy to.remove-idl: |i(irt-v. feoling', frnni rTitu\n<;ial. ;iiuilta]'.s r . .and treat/ thorn'/: iii '-tlio' snfiio;.way: ; clcfonca indVlbrß ha(l been trentod. 1 !(,> iiiforaidd JJr MaSsoy,; thati a' prospectus was' nevtn''/issued .attiiis e;id, ; :aitd-120 cahleii /had; ; pas3qd fe. ;(;woen ! :hero/ iiii'd London since.': November 1 , hfet ■nni-tlw inattpr. 0IHI10;lo-iiif,/ Wp.aiwnibbV;of, the.Cabinet, would illlow'icharge tit secrecy :td:bi) niucle against to take. •'tlii! /House; iiito ,'their confidence; lv.it it. \y;u; impossiblo : ;t;o 'givo/idctails of loans • •before 1 they;vwero vuted. Joaiv-'was /iMOsiiaryijto/moct loans maturing •and'.bx; pondi.'.ures'arithorised: bv Parliainenb front November dttst■till April.; : Sonie' £2,285,500 ji loans had oiio/and a-lialf -millions "was due-on.lst/April.'■ '.-.The-;balance of the'loadadvances to workers, ' naval, defence;' public works;anddM Tiand /Settlement■■; Act;'/Th'o loan was raised at 99 ppr:Cen!y,'nnderwritiiig costing one jier.cent. The -market' at the time: the loan was' raised. was ;not'favour-. able : for issuing a 'stock, loan for: -any long rrioriod', aiid/ahy Finance Minister:would have 1 done:jtist. what: he. had done.-: The ■loan '■would ■•cost, £3 12s for interest, hide-, pendent, of, discount. ,''.'■.•. Mr Massey.Wid the. Minister for Finance liii'd •saitl" (he Government had no .iii/crm.-i----tion, and he (Mr Masscy);resonfed the in■i:oi once that he' was actuated by.party: spirit when asking for: information.. : lie would always endeavour! to get all the information 'lio'aiid the people of the country were entitled to,/ In his opinion f;per eeni. for a long-dated loan was more economical than atbort one. !/.Mr Myers, must be in possession' of a prospectus; it had been published in all the 'English' papers, andjiit'ormalipn supplied to'the people of England,and. should be/ayailnblo'for the 'people of.this country who had. to find the■ money';. He asked if any concessions would be given investors for conversion, ~ .i , 'Mr Myers: "No." .." ■ ■'' Mr Masse'y; "Well that makes it, worse." In his opinion the- loap would have, cost only four per cent,.if the .Minister had gone on the'market, three months ago with a long-dated loan, which could then, have been raised. •■'••' Tlio-Prime Minister said the best that could be done had been done, One Would suppose ;they had'done something carelessly, ov- stupidly. Surely their advice from London was reliable.. They.bad no'hing to hide, and would give all information when they had it. There was no secrecy. Mr Allen said thero was too much secrecy after loans had been floated. Ho asked under what authority any money had been raised for,naval defence? This money was provided for in the five-million loan of last year.' ' Sir Joseph Ward said tlio ■Government i could not raise a 4 per cent loan in London j without underwriting. Ho did not bolie\\o ! the Finance Minister could have got a < long-dated 4 por eeni loan if ho had tried. .\ Tt would have cost more in the long run if I ho had,been successful. . I Mr Eraser Mid short-dated debentures j wore ruinous to- the .country, and if cave « was not taken investors would' demand j • them in all cases. i Mr Herdman said the financial methods i of the Government were desperate. The j last loan was probably imperative* and it f should not have been so with this'one.' i Mr Wilford held withpievious \ that the question of loan-raising should not i hs dealt with from a party .standpoint. Ii the Government had been advised that a j "hod-dated loan was best under (he circum- I stances, the Government was quite right in I following that course. .The"Minister should \ have the loyal support of the House.. \ .When the House resumed'at 7.30, Sir j Joseph Ward, in continuing his 'debate- on ;i the Imprest Supply Bill, referred, members i to a Parliamentary pupar in.,'connection ; with loan renewals, which he said .gave ab- ; scluto facts. He averred that members ' either were misleading -themselves, or had not a thorough grasp of the situation when . they, ijavo utterance to some of the state-. iiionts recertly expressed.'. He said/tliaMad ,:\ his party had a decent majority behind it I it prdbably would have authorised the loan j of four millions which he had arranged by \ temporary advances for his. successor in ( office; one 'million in England and one \ million from the Bank of Now Zealand; .; this, with the surplus,.left,£2,Boo,ooo to carry on the work of the country. Mr Massoy said if his party had chosen to stick up tlio Imprest Supply Bill I hoy ■] could have done so,.and in his opinion the i majority of the Hou?o would have support- j ,ed them; but they did not do so. He bad r.ever once discussed financial matters for the purpose of gaining any financial and | party advantage. The Opposition had sav- \ od the country thousands and thousands ot pounds bv their criticism and keeping the Government up to the mark. Financial people at Homo were'reaping a rich bar-' , vest out of mistakes made here. Ho quite; understood the country could not go on without borrowing. . \