LOANS AND DEVELOPMENT.

New Zealand Herald, 29 June 1914, Page 6

LOANS AND DEVELOPMENT.

Lord Ranfubly was one of tlie most popular of New Zealand governors, who will long bo remembered among us as a tactful and kindly gentleman. His affection for New Zealand was displayed in his wonder, expressed at the New Zealand dinner, that in view of the savings of our people we should still be coming to London for ' loans. This will remind many of the tender recollections of Mr. Reeves, who assured Britain once that " a New Zealand winter was like an English spring." Mr. Reeves remembered only the bright winter days of Auckland and Lord Ranfurly only the development that transformed so much country during the terms lie spent with us. If Lord Ranfurly returned for the long-promised visit ho would realise very promptly that we are still only on the fringe of the full development of the North Island. II there is one thing for which a state may fairly borrow it is the development of wild land into productive farms. The cost of this development |s so very great, involving not only the arduous work of clearing and breaking-up the land, but the stupendously costly work of roading, railway-making and bridging, and the economic result is bo advantageous that wo may fairly spread tho cost over a full generation. There is nothing behind this development upon which a new country can draw for expenses. The bush must be cleared, the roads formed, tho railways made, before the land can be profitably worked. As long as the interest paid on loans is reasonable and the use made of loans is advantageous, it is sound business policy to borrow and develop. Of course, borrowing for political railways is another matter. If the Continuous Government had not borrowed for the Midland, the Central Otago, and other worthless projects, but had spent the money on the East Coast and North Auckland lines, the Dominion would have been far richer to-day than it is.