Manawatu Evening Standard. TUESDAY, NOV. 6, 1934. THE LOAN AUTHORITY.

Manawatu Standard, Volume LIV, Issue 291, 6 November 1934, Page 6

Manawatu Evening Standard. TUESDAY, NOV. 6, 1934. THE LOAN AUTHORITY.

The Finance Bill before Parliament gives the Government authority to borrow £6,000,000 for public works. This is a maximum sum, but Mr Coates has stated very little may be needed in the current financial year- The purposes of the loan are the construction of railways and additions to open lines and to rolling stock, the extension of the telegraph system, highways improvement, electric power and irrigation works. Apart from authority to raise money on Treasury Bills this is the first loan proposal submitted for Parliament’s consideration in three years. Authority to borrow £3,060,000 was granted the Government in 1931 and this money, expended on various public works, has sufficed since then for its requirements. Only a very modest programme of public works is being undertaken these days, and the Government does not expect to exhaust the authority contained in the Finance Bill for at least two or three years. Considerable interest will be shown in the raising of the money. There is an abundance of funds in the Dominion awaiting- sound investment. The banking returns reflect this position, and lawyers and financial corporations have money for which they seek a safe return. In the past we have been rather prone to go to London for our funds instead of relying in some measure at least ■upon our own resources financially. Australia has raised money internally with marked success, and this policy lias the special advantage that interest payments made regularly add considerably to the money available for trading requirements, very often giving business a decided fillip. Moreover, there is not the premium for exchange to be met as in the case of payments to British 'investors, and this is a distinct saving. These advantages apply in New Zealand also, and though the Finance Minister has given no intimation of the Government's plans in borrowing for. its requirements, every penny that is required should be obtained locally. Mr Coates should satisfy public opinion that the Government will not seek a loan in London, for all the money required is in the Dominion.