THE CHEAP MONEY SCHEME. (Post)

North Otago Times, Volume XXXVII, Issue 8085, 25 September 1894, Page 4

THE CHEAP MONEY SCHEME. (Post)

Writ large aoross the face of tho Advanoea to Bottlers Bill, In sympa« tbetio ink whioh time will develop, io the ajjlioefc word in the language of finance, That word Is Repudiation. We had hoped that it would never have to bo seriously uttered in this colony, bnt it will surely eobo through the land in the course of a very few yoara if tho Bill in question paoecu into law. Tho polioy of tho Bill la bmod on lines whiob, an tho Sydney Morning Herald has pointed out, would undoubtedly send into liquidation any private company which ao condaotod Ite business. Those lines will ub inovltably end in national bankruptcy when pureued by tho colony rb they would in liquidation if followed by a private firm, No country in the world, however so vent at tho outset, could bear up against tho reoklesa investmoute, the aoandaloua extravagance, a t)(l the facilities for corruption, embodied in this eohome for lending money to eottlore, Burthened as New Zealand to with an enormous debt, the Interest on which constitutes a terrible drain upon tho resources of tho people, 0 oobomo euoh as that now proposed xt\ll quickly weigh the country down into tho very abyss of ruin, and crush out all power of recovery. Tho colony will be made bankrupt not only of money bat of honor. Its bankruptcy will bo of tho class characterised in *eg«rd to private ovento of tho kind as fraudulent. The polioy now proposed by the Government is one of absolute nnd deliberate dishonesty. It far exceeds even tho olaabic boundarioß of reokloefl trading. It is a polioy at bor» rowing money without any roaaonable or possible expectation of being able ever , to repay it, Worse oven than this, it is a proposal, the adoption of whiofy will render it impossible for the colony to repay, or pay interest upon, tho debts it has already honoßtly incurred. If this Bill it) earriod into law, end English investors aro foolish enough fcj lond money for its purposes not only will they suffer the loss o' mofl& of what they lend, but they will involvo in equal loss those who have already lent New Zealand large Bums (or perfectly legitimate purqoses. If money at the r»to of a million and a half a year is raised and re-lent on the more than doubtful securities authorised by tho Bill, a very few years will suffice to bring New Zealand to absoluto and oomplote financial ruin, The colony will be beggared in pookot and reputation, and the foreign creditor will look in vain for oitbor prinoiplo or interest. At best bo will only bo able to effect a compromise by making a groat sacrifice. Now Zoabnd is able to bear Jfca present burthens, although at times tho strain may be severely felt. It could, perhaps, by a little further borrowing for judloiously gsleotod objeots, oaee the strain somewhat, and really inoreaee the value of the securities hold by its oroditors The completion to a reproductive point of public works whoh at present, being incnmplet 0 , yield no return on the large flurau wbicb have been spent on them, -would be a legitimate object to appeal io tho Eighth money market for, and would benefit all parties interested in tho wolfare of the colony. But tho proposal to borrow at the rato of a million •) nd a half a year to lend to an altogethor unsafe extent, and undor moet extravagant conditions, to settlors of all olftßßOQ— lroeholdoro, leaseholders, or Grown tenants — is a wild and absolutely orimm&l scheme for any Government to • propound. It might, if tho money o»n be raised, give bbo present MSn'Btors a gay tenure of offioe for a few yearo, " After us the deluge " is ovidently the Ministorlal motto, and undoubtedly a flood of diegrace and destruction must follow the adoption of euoh a polioy as that embodied in the Advances to Settlors 33i1 . It is little U6O appealing to cither the patriotism or honesty of the present Ministerial following in Parliament. The " dumb, driven cattle " will go whithersoever the Premier direo s. Tbo Bill will, wo fear pass. Tha only hope of oalvntion whioh will thus be loft to tho colony will bo the hope that Eoglioh capitalists will bo wise enough, in their own interests, and in the in. tsretit? of those who havo already loot money bo New Zealand, to refuse to make advances uuder the measure. If i£uftlish financiers rightly underi>t*ntt the faots, tho paselog of th'd 8 11 will damn boo orodit of the cjlony on 9 Gh*ngo, and render it impossible tor it to raiHo any more money at Home for any purpose wbatovor until houetby #nd prudence once more guide tbe counsels of JMew Zealand, Jf this £'11 putmec, tnoro is ltttlo need foi the Logitl turo to waste time in discussing ihequetton of railway management. Tbttt quObtion will bo sotted in an un ri xpecvcd manner. There will no longer be a ohoico between poliUoal and »an-pjlitio*l management — between a M'ol&ter of iU Ivsrays and OoramißDonbr . Tbo management' of tho railwny<j w 11 very quickly pewa into the hand» of a lloooiver, acting on bebal of tho publo oreditor, That will bo cue of ttie rOdulta of the operation of the Advanooa to Set lers Act. Otheta au eiriou', and still moro disagreeable, would quickly follow,

No 8 11 thia Besaion hau been 00 groitly ooudemuod' by members aa the Oboop Money Scheme. Mr Hog;; Btrongly objocts to bbc poll cation of the records of billa of sale and 1 one en 'wool and obook iamcrcuoH til? (•azottes »8 an InjußtisQ t) sot'lerw, He Gumacßfi coaoldo a f t) quite right to publish them, Mr it.'M'Koozie Uat eight' said Mr Buohannn no doubt opposed the Cltioap Moaoy Scheme on ; aoc6aot of bis connection with money-leaders, Mr Baolmian (iftidhe never loat money in his life.