Nelson Evening Mail THURSDAY, DECEMBER 13, 1893.

Nelson Evening Mail, Volume XXVII, Issue 294, 14 December 1893, Page 2

Nelson Evening Mail THURSDAY, DECEMBER 13, 1893.

A telegram from Wellington published to-day states that the Government has instructed tbe Agent-General to make inquiries as to whether capitalists in London would be likely to lend money to be invested through the New Zealand Public Trust Office ia mortgages on property in the colony. It thus appears that Mr Seddon really desires to oarry oat tbe scheme, tbe sketch of wbicb waß found in Mr Ballance's pigeon boles, and which appears to have impressed the imagination of bis successor. It is always unsafe to prophecy, but it doe 9 not appear likely that tho Agout-General will re. ceive much encouragement. Little is known in London respecting the New Zealand Trust Offioe. and the proposal is likely to excite distrust in London, Ab we pointed out somo time ago a main feature of the original policy of the Government that there '.should not be any more borrowing oa the part of the New Zealand Government in London. Mr Ballance deolared time aftet time tbat there waß plenty of money lying loose in the colony, and that tho Government could easily obtain as much aa might bd necessary for publio works at easy rateß of interest. Ihis declaration, no doubt, had a considerable effect among those in London who take an interest in New Zealand finanoe. There will be a considerable bewilderment if they are told that though the Government can get what it wants, private landowners with the best of security cannot, and there will be disbelief iv the statement that there are not to be future loans. In every respect the scheme seems fraught with great danger. If the money were invested through the Trust Office under the Aot of 1891 the colony would be liable for any loss through over-estimate of -securities. As is well knewn, the value of property has varied exceedingly in New Zealand. In Nelson for a long series ol years the movement was downward! and no doubt many mortgagees who thought themselves amply secured have found themselves heavy losers. In some parts of the colony property is high at present, and even the greafc margin of yalue insisted on by Jthe Public Trustee might easily prove insufficient in many oases. If there were such deficits to be made up out of the general purse thoy would be pretty sure to come at the most inconvenient times, with falling revenue and decreased prices. Again, if the scheme were to succeed the Public Trust Office would grow beyond ali bounds, and would become the most important department of State, with its finger in everyone's pie. Tho danger of such power is plainly seen, even it as at present there were not the least suspicion of corruption or manipulation of the office for political purposes ; but it ie easily conceivable that if if such a great machinery were set up the temptation would bo strong, and poseibly the opportunity not wanting to an unscrupulous and strongwilled minister to use it for purposes which might bo ruinous to Now Zealand,