Nelson Evening Mail. SATURDAY, APRIL 28, 1894.

Nelson Evening Mail, Volume XXVIII, Issue 98, 28 April 1894, Page 2

Nelson Evening Mail. SATURDAY, APRIL 28, 1894.

It is to be supposed that Mr Seddon etiP sticks to his tchoine of borrowing money iv Londou iv order to loud ib oub at low rates of iuterest iv Now Zealaud. YVhen a Miuistor in a publio speech puts forward a schemo of tho sort ho is supposed to moau what ho cay?, aud ho may bo expected to take tho Arab opportunity to givo ib effeot. According to a telegram published to-day tho members of bho Gisborne Harbour Board complain of a fiuancial busiuoss in rfhich bho Government is concerned, and whioh bo far resombles Mr Soddon's schemo that it involves a double prooess of borrowing. Tho Gisborne Harbour Board raised a loan, as a good many Harbour Boards have also done, but, unlike mosb others, it has nob spout all bho money. The nnspoub part is in charge of bho Public Trustee, who has lout it to tho Govern, raenb ab the easy rato of four and a half per cent of interest. Ib is abated bhab if bho money woro invested in tho Poverty Bay disbriob ib oould without risk earn six por cent, aud thab tho Harbour Board loses £1000 a yoar by tho modo of investment adoptod. Possibly tho excuso of the Goverumout and Public Trustee will ba thafe the money is leub at a low rato of interest because ib musb bo ab short call, bub tho faob remains thab a considerable sum for which a looal body is payiug comparatively high iutoresb iB boing used by tho Governmonb at a lower rato. Tho proposal has boen mado biino aftor timo that bhe Governmonb should guarantee all bho loans of local bodies iv the colony, so as to reduce tho rate of interesb. In bhe presenb case ib oanuot bo said that bho Goverumout is giving muoh nssisbauce to bho looal body. Tho question has beeu raised sevoral timos of the propriety or impropriety of the praotioe ou the part ol the Government of helping itself when ib ploases to trusb money in the hands of tho Publio Trustee. No doubt ib is very couvenicub for bhe Government to have such a source to draw from, bub tbo praotioe might load to gi avo abuse.