REFORM FINANCE.

Manawatu Standard, Volume XLI, Issue 9855, 24 July 1914, Page 7

REFORM FINANCE.

A SATISFACTORY POSITION. COST OF LOANS REDUCED. WELLINGTON, July 21.* The Opposition made a somewhat feeble* and amusing attempt this afternoon to disparage the finance of the Reform Party. The Prime Minister was easily able to show that a great saving was being effected in connection with the Dominion's borrowing since the Reform Party came into power. Mr Massey added that their finance had been so satisfactory that jwithin the last few months the Government had been able to supply the local authorities without asking them to go. to London under a State guarantee. Mr Russell had made a charge that the Government had borrowed "privately and surreptitiously" recently in London £1,223,000. Mr Massey ridiculed the idea that there was anything surreptitious about raising money that had been authorised by Parliament. He challenged the hon. member to say there was. Mr Allen, referring, to the same borrowing, said the.present Government had on this amount of £1,223,000 saved 1 per cent, underwriting fee, and half per cen£. brokerage, and bank charges. Moreover, the money had been raised in the ordinary way on the advice of the Government's broker, and of the High Commissioner. As to the Government's last 4J million loan, the hon. member for Avon had only to look at any financial newspaper to see what a success that loan was. It was so successful that the public subscribed in an hour and a half or two hours no less a sum than £25,872,000. (Government "Hear, hears.") The Opposition going up and down the country had also suggested that some of the loans being raised were short dated loans.

Mr Russell: One for ten years. Mr Allen: Not even for ten years. They are all long-dated loans. An interjection by an Opposition member about the Post Office Savings Bank returns led Mr Allen to retort that the latest returns showed that the Post Office Savings Bank deposits were more satisfactory than they had ever been in the whole history of the Dominion. He proved his statement with the actual figures. He said he would take the opportunity of giving the member for Avon one more piece of information. In February last, the Governmont realised a loan of £30,000 in London, and they got it at 102J for sixteen years, the net price being £3 life 10d. '(Government "Hear, hears.") The position when he came into office was £5 Is Id which the Myers' loan cost. With his (Mr Allen's) first loan, he had reduced the cost to £4 5s 4d, and the cost of his last one to £3 19s lOd. (Government "Hear, hears.") Those figures were proof that absolute and complete confidence had been established in London.