SCARCITY OF MONEY.

New Zealand Herald, Volume L, Issue 15262, 28 March 1913, Page 5

SCARCITY OF MONEY.

THE GOVERNMENT'S BURDEN.

ROADS BEFORE RAILWAYS...

[BY TELEGRAPH.—SPECIAL BEPOBTEB.} Daegavtlle, Thursday. " The four and a-half million loan which was raised last year by the previous Government has got to be found by the present Government next year," said the Hon. W. Fraser, in the course of a reply to a deputation at Dargaville. "Therefore, I cannot see my way clear to give authorities for new moneys. In fact I dare not do it."

Mr. Fraser went on to say that indications pointed to the fact that the London money-lenders would not renew the loan, and the Government was faced with the difficulty of having to find the money by borrowing it again.

" When I took office," continued Mr. Fraser, "I found that the previous Government had pledged itself to a large number of grants, for which there was no money." He himself, he added, had been left with no money for any new works that were wanted. Out of common honesty, he continued, he had given instructions for the grants pledged previous to his assuming office to be. carried out first. They would understand then the present difficulty, which was no light burden on the shoulders of the new. Go? vernment.

Replying to a deputation later in the evening, which urged upon him the pushing on of the work of extending the Kaihu Railway, Mr. Fraser said that he could make no promise whatever in the matter. He might as well be /frank about the matter, and repeat that. if there was going to be a pinch in the supply of necessary money he was going to pinch the railways in preference to roads. The settlers wanted roads before railways, and that was the policy to which he intended to adhere. (Applause.)