DOMINION'S FINANCES.

New Zealand Herald, Volume LI, Issue 15749, 26 October 1914, Page 7

DOMINION'S FINANCES.

SATISFACTORY POSITION.

MR. ALLEN CONFIDENT. '

IMPERIAL LOAN NEXT YEAR.

PROVISION FOR NEW ZEALAND.

Complete confidence in the condition of the Dominion's public finances was expressed by the Minister for Finance on Saturday.

Considering the times we are in the financial position of New Zealand is especially good," Mr. Allen stated. " There can be no question about it. I have no hesitation in saying that so far as the finances of the country are concerned there can be no comparison between the conditions to-day and the conditions we found when the Government took office. The position is insuperably better especially the condition of the State Advances Funds and the Public Works Fund."

Mr. Allen said a Loan Bill will be introduced in the House of Representatives to-morrow, and he will then make an important statement regarding financial matters. Recent criticisms of the Government's borrowing policy will be answered by a complete review of its loan operations, in comparison with the transactions of its predecessors. A statement of the present condition of the public: funds will be fMven, and the Minister will also discuss the prospects of the future. Mr. Allen explained that the expenditure for military purposes is being met by funds raised from the Bank of England on Treasury bills on very favourable terms. Sufficient funds remain from the last loan to continue the public works, and since the latter are of essential importance the reduction in the advances to local authorities and others has been made so that the balances in these funda may be temporarily used for public worKs.

The position in regard to the unconverted portion of the Ward five million loan, amounting to £3,200.000, which matures in December, is not satisfactory, as the attitude adopted by the subscribers of the loan makes it necessary to raise a new loan to repay the money. The holders of the debentures refuse to renew them to convert them into stock, or even to sell them, so that the loan must be repaid. Mr. Allen said he expects it will be necessary to obtain the money to repay the loan by issuing Treasury bills.

The Mother Country is going to raise a loan next year to pay off the Treasury bills which she is now issuing at the rate of £15,000,000 a month," Mr. Allen stated. " We have every reason to believe that the Imperial authorities will make provision in that loan for the requirements of New Zealand, securing for us a sufficient amount to enable us to pay off our Treasury bills in addition to the loan for which the Government is seeking authorisation. That loan will probably be for a long term, but in any case we can be quite certain that it will be raised by the Mother Country on more favourable terms than anyone else will be able to secure."