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New Zealand Herald, Volume XXV, Issue 9163, 19 September 1888, Page 4

It would seem that New Zealand is at present in a more than usually humble frame of mind, from the deference with | which we listen to the opinions of all j who have anything to propose for our I benefit. We are willing to sit at the j feet of any person who professes to be : able to teach us how to extract valu-: able minerals from our ores, or how to prepare our butter and cheese for the market, or how to deal with our frozen ' meat. All this is very becoming on the j part of a colony which of late years has j made many mistakes in policy, which has listened to bad advisers, and has entrusted itself to very bad guidance. The latest giver of good counsel is Mr. Westgarth, the head of the well-known stockbroking firm, who is now making a tour of the colonies. Mr. Westgarth has a definite object in visiting Australasia at present, and this is to make proposals for a general consolidation of the loans of all the colonies in 3 per cent, stocks on the joint and several responsibility of the different Governments, instead of the varying rates on debentures now issued. We doubt very much whether such an arrangement would be at all possible. Most of the Australian Governments would in all probability object to forming a partnership witn New Zealand. For our own part, although we have strained our credit, and although we

stand at present just about at the bottom of the list, we really do not think that it would be regarded here as a blessing to be allowed to go into a pool with all the other colonies. Apparently Mr. Westgarth sees many practical difficulties himself in the realisation of his plan, for he has another proposal, that each colony should agree to issue only 3 per cent, loans. New Zealand cannot issue any more loans for three years to come at any price, and when that period expires it will be as well for us to take the pledge of abstinence for another three years at all events. We must " swear of!" for that space of time; At present, with our different loans, and the system of conversion which has been in progress for some time, the practical carrying out of any such proposal as that made by Mr. Westgarth would be exceedingly difficult. Mr. Westgarth has, however, another suggestion, which is practicable, as we have it all in our own hands. No municipal or harbour loans should be allowed to be placed upon the market. There can be little question that New Zealand has suffered more from the multiplicity of little loans already authorised than from any other cause. Several of these are in an unsafe posit ion. If any of those bodies do make default, of which there seems considerable danger, then it will be pointed out that the loan was duly authorised by both branches of the Legislature. The credit of the colony will certainly suffer. Our task at the present time ought to be to improve our credit by every means in our power by absolutely refusing to sanction borrowing by local bodies, and by seeing to it that our expenditure is so much reduced that the Colonial Treasurer shall have a balance in hand. Then we may consider the feasibility of so modifying the colonial debt that the payment for interest shall be reduced. Mr. Wcsitgarth's proposals cannot but have a good effect on the' London market. He forth that the two great for the investment of surplus English capital are British consols and colonial loans. If the colonics are reasonably prudent within the next few years, they may materially raise their credit. But a consolidation scheme, with a joint responsibility, could hardly be gone into unless some joint action could be taken to check extravagance.