NEW ZEALAND FINANCE.

New Zealand Herald, Volume XXIX, Issue 8881, 18 May 1892, Page 5

NEW ZEALAND FINANCE.

THE PREMIER AND LONDON FINANCIERS.

[BY telegraph.—OWN CORRESPONDENT.] Ellington, Tuesday. The Hon. Mr. Ballaiice favoured me with a second interview this morning, when I went to see him upon some mutters of general interest. In a further conversation with him I referred to the statement said to have been made by Mr. Brodie lioare during the discussion upon Mr. Perceval's address. Mr. Ballance, in reply, said : —" It seems to me peculiar that no reference was made in the Mr. Perceval's reply, for, as Mr. Perceval had opened the debate, he would reply to statements made during the discussion. It appears to me the substance of that reply should have been made known. It is strange that it should have been omitted. After everything is said the credit of the colony must be measured by the rates of its securities and not the opinions of gentlemen in London. The rates which our securities command prove beyond a doubt that those who are really interested have faith in our stability.''' " It is confidently affirmed that money withdrawn by companies must prejudicially affect industrial enterprise." " We have no reason to believe that any of the staple industries of the colonies have been injured by our finance. As to our taxation proposals the companies would have to consider how far they might interfere with legitimate industry ; that is a question for themselves. But if it can be shown that our staple industries have been injured our policy would be a mistake to that extent. The contrary is the case. Grain, wool, frozen meats, dairy produce, fruit, and timber depend upon consumption for their development, by which price and profit can only be determined. Wherever we throw open land it is taken up. It was arranged with the Midland Railway that 50,000 acres should bo set apart in alternate blocks along the line for the purpose of putting small settlers on the land. If Mr. Brodie Hoare understood the wants of the colony or possessed any foresight he would have preserved that condition. He appears to know very little on those subjects." " But it is said that New Zealand debentures have been depreciated through dis trust of the London money market. The question is not what London financiers may say, but what is the fact." " With regard to our securitifes the fact that three and a half per cent, debentures have advanced to 98 should be very gratifying, seeing that there are in the hands of our agents threo and a-half per cent, debentures not disposed of in connection with recent loan conversion. We do not propose to put this on the market until our credit shall have ri=en to high-water mark. There is, indeed, a general rise in securities, and it may be said that New Zealand's securities have not had a more rapid rise than others. No doubt the position of the finance of the colony during the past year had something to do with it, but the Agent-General was able on the very day after the half year's interest had been paid to redeem the whole of the guaranteed debentures in London £476,000. That fact alone is an indication of the strong financial position the colony of New Zealand maintains in London. The Agent-General has also been able to arrange with the Bank of' England that money may be on receipt there in payment of interest two days before it becomes due. It is, of course, impossible to convince those persons who shut their minds against conviction and whose interests are opposed to the real facts being made known. I have simply told you the real position of things. " As ninny eager persons were waiting to see the Premier I thanked him and withdrew.