VOGELIAN FINANCE.

New Zealand Herald, Volume XXIV, Issue 8065, 5 October 1887, Page 5

VOGELIAN FINANCE.

THE SEIZURE OF THE SINKING FUND. A DISGRACEFUL TRANSACTION. HOW THE COLONY'S CREDIT WAS INJURED. - [by telegraph.—own corrksponLent.] Wellington, Tuesday. The Press this evening has an article describing tho steps in the descent of New Zealand credit in London, shortly after tho 3tout-\ogel Government obtained power. This article is specially aimed at Sir J. Vogel's financial operations in 1834-5, and contains the following statement:—" There was a deficiency in the revenue of about £150,000, and he persuaded Parliament in an evil hour to take the easy but dishonest course of suspending cash payment of the sinking fund on the public debt in London, and applying the money instead to current purposes in the colony. This disgraceful transaction was cunningly devised so as to puzzle the public as to its real nature. It was arranged that payment of the sinking fund should nominally be continued as before, but that* in pUce of cash inscribed stock for the amount required each year should be placed in the hands T of the commissioners. It was as if a man who had borrowed £100, and agreed to maintain a liquidation fund of £1 a week, had ceased to pay cash, and had given his own promissory note for £1 evary week. Parliament was led to believe that this would make no difference to the bondholders, and in the long run of course it will not make any difference to them if tho colony remains solvent. But it was a distinct breach of faith with them ail the same, and it damned the good name of the' colony for financial probity Jor many a long day."