A MINISTER TO VISIT LONDON.

New Zealand Herald, Volume XLIX, Issue 15131, 23 October 1912, Page 7

A MINISTER TO VISIT LONDON.

HON. JAMES ALLEN.

DEFENCE AND EDUCATION.

THE COUNTRY'S LOANS.

[BY TELEGRAPH— CORRESPONDENT.]

Wellington, Tuesday. The Hon. James Allen (Minister for Finance) will, at the request of the Government, pay a visit to London early in the year, in connection with Dominion finance. While Mr. Allen is in London he will have to deal not only with the new loan of £1,750.000 for public works, but also with the renewal of loans falling due, and the raising of other loans for the State-guaranteed Advances Department, the State coal mines, etc. In addition to til© £1,750,000 for public works, there is a balance of £74,000 of last year's public works loan still unraiscd, and £100,000 is wanted for the State coal mines. There will also be an indefinite amount in connection with renewals of loans falling due, and an amount for lands for settlement, and for advances to settlers and workers. Mr. Allen will also avail himself of the opportunity afforded by his visit to learn something of the probable finanacial position next year, when a large amount of loan money (including the £4,500,000 borrowed by the Mackenzie Government early Ibis year), is falling due. The following table shows the loans fall ing due within the next three years —

Tear. , „j£ , _ ■. 19 1, -13 . 3,299.666 1913-14 "... .". 1-77T.700 1914-15 . - 9,830,835 Total £14.907.221 Of the eight million odd pounds falling due in London in 1914-15, £3,142,600 is of the £5,000,000 loan not yet converted, but subject to further conversion. Of the New Zealand amounts, totalling for the three years between four and five millions, the larger proportion is moneys borrowed from the Post Office, and will no doubt be renewed. It is not certain that other New Zealand amounts or Australian amounts will be renewed, and it is quite likely that New Zealand will have to raise money in London to pay off these items.

An End to Short-dated Loans. It is Mr. Allen's intention to see whether New Zealand can arrange something with a view of getting rid of the short-dated debenture system. This matter was referred to in the Budget, in which the Minister for Finance stated that the consolidation of our short-dated debentures had given him grave concern. He added that during the next seven years a very large portion of our public debt would require either to be renewed or be paid off by fresh loans, and that arrangements would need to be made accordingly. The Budget went on to say : " The Government does not approve ofr.be issue of shortdated debentures for tins country's loans, and is of opinion that a comprehensive scheme for converting them into stock is very necessary." The Cabinet has come to the conclusion that it is very necessary that the country should not have the short-dated debentures system hanging over its head any longer than is absolutely necessary, and it is desirous of making provision for longer loans. The. Government wish to get rid of the: hand-to-mouth system, and to put our- public finances upon a more secure basis. ■

Imperial Defence. When Mr. Allen is in England he hopes also to learn something regarding the ideas of the Committee of Imperial Defence especially in connection with New Zealand and Pacific trade routes. This, of course, relates to the question of naval defence. In so far as land defence is concerned, our ideas have now fully matured. Our policy in regard to naval defence is still being considered by the Government. Mr. Allen is also anxious to hear what the Defence Committee, has to say about our harbour defences in regard to fixed armanent, and more especially in regard to torpedoes and submarines as ,a means of defence, and in regard to the naval base.

Educational Methods. Mr. Allen, as everyone knows, has for many years taken a very keen interest in education, and if time permits he will, during his visit, devote some study to educational systems in the Old World. He is very anxious to see- something of the technical school work in Great Britain, France, and Germany. If time permits he will also endeavour to get an insight at. first hand - into the Swedish system of physical training. The system is being taken up in two or three places in England, and New Zealand is reorganising in this direction in the primary schools, in which the whole system is to be changed. Altogether it would seem as if New Zealand is likely to benefit to a very considerable degree, through the determination of the Cabinet to ask Mr. Allen to pay a visit to the Old World at the present juncture.