LOCAL DEBENTURES.

New Zealander, Volume 1, Issue 25, 22 November 1845, Page 3

LOCAL DEBENTURES.

We understand that some proceedings ha^je taken place during the last week respecting the small local debentures current in the town, with a view to create a more wholesome circulation. We have long deprecated this system of issue of small paper money, by persons of questionable stability ; and any change that will occasion their withdrawal from circulation, we shall consider a public benefit. But in truth we think, that one of the first acts of the Legislative Council should be to prohibit altogether private debentures. In England, we believe, it is illegal for any individual or bank to issue promissory notes under the value of twenty shillings. — Why not enforce similar restriction and law in this colony ? The go-

vernment debentures are not compatible with sound financial principles ; but necessity and poverty of the Local Government, in some degree excuse their issue : and the very first financial step of the new Governor should be — their total withdrawal, by payment of the smaller debentures, in specie, and making the larger debentures, of £50 and upwards, by his endorsement, payable in London. This would at once place the circulating medium of the colony in a wholesome, healthy state, while, ] at the same time, the large debentures, with such guarantee of their payment in England, • would render them available for remittance, to all quarters of the globe, and prevent the specie from being abstracted from the colony. With regard to these local private debentures'—now that there has arrived recently so much silver, and the troops are paid in small coin — there can no longer be plea or necessity for the circulation of the dirty valueless scraps of paper, hitherto so abundant. On Monday the 9th June, our townsman Mr. Brown had an interview with Lord Stanley at the Colonial Office.