SIR JULIUS VOGEL AND MR. BRYCE.

New Zealand Herald, Volume XXII, Issue 7343, 2 June 1885, Page 5

SIR JULIUS VOGEL AND MR. BRYCE.

We are requested by Sir Julius Vagel to state that, if Mr. Bryce is correctly reported at Waverley, his statements are calculated to create seriously wrong impressions concern* ing the nature of the finance measure of last session. Sir Julius wishes to add that he is sure that it has not been through intention, but through misapprehension, that Mr. Bryce is so much in error as the statement appears. It would seem that Mr. Bryce alleges that the Assembly authorised borrowing to the extent of nearly one and a-half millions without distinctly.saying so. The natural inference would be that this amount was . authorised to be borrowed on behalf of the colony, the colony being liable for repayment. The statement is, however, not correct, either as to the colony or other bodies being authorised by the measures of last session to increase their debit by the aggregate amount stated. Mr. Bryce's statement is that the following authority was taken for borrowing : —'• For the North Island Trunk Railway, £1,000,000; loan of ISS4, £1,500,000 ; loan to the extent of the accrued Sinking Fund, £2,792,808 ; and loan to the extent of the Sinking Fund of this year, £244,000. In addition to this direct loan, there was authority for indirect borrowing power for the Westport Colliery £500,000, guarantee on debenture, £150,000 ; Otago Harbour Board, £750,000 —bringingthe total amount of borrowing authorised in one session to £7,436,808. All except the million for the North Island Railway was authorised last session. The Philosopher's Stone, which was to save the colony £244,000 a year turned out to be seizing the Sinking Fund." As regards the North Island Trunk Railway loan it was authorised in 1882. All that was done last session was to give authority for its being raised ; it having been stipulated that it should not be raised until'the line was approved by Parliament. The loan of 1884 —one million and a-half—was a new loan authorised last session, mainly to discharge and meet liabilities inherited from the Government of which Mr. Bryce was a member. The loan, to the extent of the accrued sinking fund, may almost be said to be imaginary. The only ground for stating there was authority for such a loan is that the power to convert loans outstanding, without deducting the sinking fund accumulated, was re-enacted. If that is what Mr. Bryce meant, it was no new power, for the same was already existent by the 4th clause of the New Zealand Consolidated Stock Act, 1877. The Westport and Greymouth harbour loans are presumably meant by the next reference. The Government was only empowered to guarantee part of these loans. Mr. Bryce seems still to quite misunderstand the nature of the measure concerning the sinking fund. It is satisfactory to know that it was searchingly examined and approved at home. As to the borrowing of last session, it may be said that it nearly all consisted of authority to take up engagements already contracted, except the £240,000 to provide an equivalent for the increases of the Sinking Fund after the 31st March, 1884, but not to take up any Sinking already accrued. [The above was transmitted to us by telegraph last night from Wellington, per Press Association.]