THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY. MARCH 24, 1886.

New Zealand Herald, Volume XXIII, Issue 7593, 24 March 1886, Page 4

THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY. MARCH 24, 1886.

One must go from home to hear news. That old proverb has received another exemplification by the fact that the latest and most authentic intelligence of how much we are to borrow this year comes froLQ London. There is also this singular fact about tho news. It not only discloses what the Ministry have agreed to do, but it flatly contradicts the statements they have hitherto made on the subject. The London Times and the Agent-General have between them put the Ministry into a very awkward position. Ministers sat together in Wellington for some time, and Cabinet councils lasted from morn to dewy eve, and the result of it all, we were officially informed, was that no agreement had been come to in respect to the borrowing. On Saturday morning last, our correspondent said : " I am assured on the authority of the Premier that this announcement (that of the London Times) was made in error, inasmuch as no question in respect of the amount to be borrowed has yet coine before the Cabinet, and consequently no authority could have been given for the statement." But yesterday we have the whole thing thus clearly explained ; —" The Colonial Treasurer cabled to the Agent-General 1 If borrow this year not exceed million and a-half, including Trunk loan.' Doubtless it was this that the AgentGeneral communicated to the Times." No doubt it was. Some time since, we were told that disquieting rumours were afloat in London as to an intention on the part of the colony to go in for a big borrowing scheme, arising out of the known proclivities of Sir Julius Vogel, and the statements which had been made by him. The AgentGeneral wished to dispel the alarm, and communicated with the Treasurer, who, long before Ministers had assembled in Wellington, sent word home of exactly what the Government intended to borrow. But the first puzzle is, how was it, when the statement as to what the Times had said was first cabled, that it did not at once occur to Ministers that it had arisen from the message sent by the Colonial Treasurer 1 How was it that the Premier was put in the disagreeable position of saying that "no authority could have been given for the statement," when ample authority had been given, and when the Colonial Treasurer could have said, "Oh, I know all about that; I wired to Bell, llf borrow, will not exceed million and a-half, including Trunk loan.'" Above all, how was it that the Cabinet was summoned to determine what should be borrowed when Sir Julius Vogel had already made a solemn official engagement to the Stock Exchange that not more than a million and a half would be asked for this year 1

Leaving these queries, however, in the meantime to be settled between the Treasurer and his colleagues, we come to other points. It is quite obvious that people in London had been becoming uneasy about New Zealand borrowing, and the AgentGeneral, feeling this, had wired out for a quieting telegram, which was at once despatched by the Colonial Treasurer. "If borrow this year," says Sir Julius. We thought there was no doubt about the absolute necessity of borrowing this year. All Sir Julius's Auckland speeches was devoted to showing that the colony must borrow as soon as possible, or something like a collapse would take place. First, he stated it as an axiom of his policy that we should expend, in each year, at least a million and uhalf upon railways, and another half million upon other objects. That would make an expenditure of borrowed money of at least two millions per annum. He then went on:—

Just look at what will happen if Parliament meets now, and no provision is made for fresh loans. Wβ have provision made up to the erd of June. I do not think we should seriously trench on the funds of the North Island Trunk Railway loan up to that time. If Parliament meets, and in the usual way passes an Act for expenditure for various purposes, that expenditure can only come out of the ways and means of the North Island loan. . . . We are in this position : either when Parliament meets it haa to expend the North Island Trunk loan upon other purposes than that for which it is intended — and I suppose the Auckland members would never consent to that—or else have a cessation of public works, which would, in my opinion, cause a most serious disaster throughout the colony. Sir Julius then recalled the state of affairs in 1884, when the authorities for the new loan did not reach Eng-

land till close on the end of December, and continued :—

I say this, if we are going to adopt the same course this year, even supposing we expend the money— which Ido not think we ought to do—ot the North lslaud Trunk loan, 9v«n if we do that there will be serious disaster in the colony.

The Treasurer knows that the Auckland members will oppose the expenditure of the Auckland Trunk loan on other purposes than that for which Parliament intended, and he himself states that he does not think the money from the Trunk loan should be expended on other objects. He further frightened us all in Auckland by saying that unless Parliament borrowed at once, even if they took the Trunk loan, " there will be serious disaster to the colony." Now he has cabled to the Agent-General, and the AgentGeneral has officially informed the Stock Exchange that it is problematical whether New ZeaLud will borrow at all this year; but if it does, the sum required will not be more than a million and a-half, including the North Island Trunk loan. What are we to make out of all this contradictory muddle '( Clearly the pledge to the London Stock Exchange must be kept, and our borrowing, up to tub end of December next, must not exceed t» million and a-halt. *. million, of this is that loan authorised for t'ae NorU. Island Trunk Railway, <»nd for that purpose only, and Sir Julius tells us that iu must be spent on other purposes. Ministers said ioog ago that they would spend it on other purposes, and although they drew back from that, and at Auckland the Treasurer said he thought it would be very wrong to divert the money from the purpose sanctioned by Parliament, they »ro determined to squander it after all. The Trc» B urer is prepared to brave the upposition of the Auckland members wnich. ae naturally and to dt violence co his own convictions of wnac is ngnt. He is prepared to go on the London Stock Exchange, having as his authority to borrow an Act authorising & loan for the construction of a Trunk Railway through the North Islana, and yet with a declared intention that the money is to be spent for other purposes. But hfc said that even if all this were dont, and no further money raised, "most serious disasters would ensue." How does Sir Julius mean to avert these? Probably he will contrive to make the million and a-half do up to the end of December, spending it for all purposes except the North Island Trunk Railway, and then he will go on thti market at the verv beginning ot next year for money to begin his public works scheme. If we do not sanction tnat y nothing more can be done to the Trunk Railway. But, surely, Parliaments will have a word to say to this design