THE GOVERNMENT CHEAP MONEY SCHEME.

New Zealand Herald, Volume XXXI, Issue 9403, 9 January 1894, Page 5

THE GOVERNMENT CHEAP MONEY SCHEME.

. [by TELEGRAPH,—OWN CORRESPONDENT.] Wellington, Monday. Under the heading " Money Market," the Ministerial journal this morning refers to the recent telegram from London, condemning the cheap money scheme of the Government : "The moral of the depressed market is perfectly clear. It is that private enterprise has made 'ducks and drakes' of the money of a great many people who could not afford losses, from which we may conclude with reasonable certainty. that in the days that are coming the j value of Government guarantees , will be increased considerably by the determination of the lenders not to take any other security for their money. ' Wei read In a recent cable message that certain; bankers in the city of London have thought proper to denounce the plan, announced during the election, for getting cheaper money for the agricultural interest of the colony, bub ib is precisely the bankers of Great Britain and Australia who are among the number of those ; whose private enterprise has ruined a great • many people of late. Their words may be used against the new policy, but if that policy ever has any success, It will be due entirely to their actions." ' I ' . . ~ : The Post denounces the project as certain bo be followed, by the same disasters as 1 have overtaken the Argentine Government, and concludes as follows :t~" There , is little probability that any Government - will be; able to borrow money ab Home for such a; purpose, but any attempt to do so would] • seriously damage the' credit of the colony,'; and endanger its power to borrow for more ' legitimate, »n4 necessary t objects. The; ' London market will have to be appealed to ore long to provide means for the completion of. public works already in progress, bub unproductive while> incomplete, ? is, wo think, absolutely certain. It is much to be regretted, therefore, that the confidence of • the money market' should be - shaken, and the credit of the colony prejudiced by. such an indefensible «*nd reprehensible proposal ;as that to borrow "money to re-lend to private persons. The consequence of even putting forward, with apparent: seriousness, such a rash and ill-advised 'scheme may. prove : very serious,■ We may expect that the Agent-General will very ; quickly advise Ministers of the Unfavourable reception which such a' proposal is sure to meet with ins the "London money market, arid of the injurious effects which may resuit from putting it forth." < JsiV