Manawatu Daily Times United Party Finance

Manawatu Times, Volume LIV, Issue 6810, 14 January 1929, Page 6

Manawatu Daily Times United Party Finance

’J’HE Reform organs , are making “ heavy weather ” of their

unaccustomed role of critic. Most of them prophesied that Sir Joseph Ward would not be able to raise his loans on the terms proposed by him. Then, when the matter was not fixed up in a few days, they criticised him for not raising the money. And now that he has raised it they are labouriously endeavouring to prove that the interest rate is not what it should be. The “ Dominion ” is a case in point, although it must be admitted that its efforts to cast suspicion upon the candour and integrity of the new Ministry lack conviction. “ Another seven millions has to all intents and purposes been added to the public debt of the Dominion,” it tells its readers. “It is obvious that the golden dream of money borrowed at 4£ per cent, to be advanced to farmers and workers at 4f per cent, cannot materialise unless the Government is prepared to embark on the dangerous course of saddling the country with an annual loss. Though the election promises of Sir Joseph Ward are not likely to be fulfilled so far as the rate at w r hich the money will be advanced is concerned the Prime Minister has lost no time in his loan raising.” Much more to the same effect need not be quoted. The Opposition organ takes it for granted that with loan money costing nearly 5 per cent. Sir Joseph Ward will be unable to make advances to farmers and workers at 4£ per cent. It is quite a good rate of interest from the borrowers’ point of view, it admits, but it will prevent Sir Joseph fulfilling his promises from the hustings. This implies that Sir Joseph was definitely committed to securing the money the country required at 41 per cent., and makes no allusion, to the fact that he was unaware of the conditions which were not communicated to him until after the recent election and his own assumption of office. In the circumstances it is scarcely fair to suggest that he is going to hand money to workers and farmers at a rate of interest that would place an additional burden upon the taxpayers, or, that he is going to abandon his scheme of assistance. If the money can be invested upon undoubted security at 5 per cent, it will be acceptable to the people concerned and the assistance will involve the State in no loss. The Dominion s Credit It is evident from the statement made by Sir Thomas Mackensie in the course of an interview in Auckland that financial authorities in London were not carefully informed of the character of Sir Joseph Ward’s proposals when they were first submitted to the public. “ I was in England when the general election was in progress,” Sir Thomas explained to his interviewer, “and financial circles were rather shocked when they read that Sir Joseph Ward proposed to go on the market for £70,000,000. The explanation that I have since seen of the proposals puts a very different complexion on the matter, but, at that time, the scheme stood without explanation of the method of spreading the borrowing over a number of years. If the full announcement had been cabled at the time there would have been no unfavourable comment.” It was not the fault of Sir Joseph Ward that imaginary stories got abroad, but now that he is at the head of the Government it is his business to see the Mother Country is kept better informed. All’s Well In the course of an informal chat on Saturday the Prime Minister said he had been too busy during the last few weeks to read all the newspapers had said about himself, his colleagues and his policy. He judged from what he had heard, however, that the public generally was disposed to give the United Party a fair trial. The writers of many letters he had received were much more emphatic than that and he hoped he and his colleagues would be able to live up to all the good things his correspondents had expressed. Personally, he felt confident that the Government would make good, but he realised that all the results he desired could not be obtained to-morrow or even at the end of next week. The public was giving him lots of encouragement; his colleagues were fulfilling his highest anticipations; his former opponents, for the most part, were proving themselves chivalrous and helpful. There were big problems to be solved—as big as any that yet had been attacked—but they .would be tackled, and with stout hearts they would be solved.