PRUDENT FINANCE.

New Zealand Herald, Volume LII, Issue 15824, 22 January 1915, Page 5

PRUDENT FINANCE.

GOVERNMENT'S ACTION.

NO SURPRISE CAUSED.

Times and Sydney Sun Services.

(Received January 21, 5.40 p.m.)

London, January 21. The Times, in a leader, says: " When £600,000,000 is spent on the war alone in a year it is only the merest prudence for the Government to lay down restrictions on its outflow through other channels. Its action at this moment has consequently caused no particular surprise in financial circles, and has been very calmly received in the city and on the Stock Exchange."

The cablegram refers to an official announcement that owing to the necessity for husbanding the financial resources of the country with the view of a successful prosecution of the war, the Treasury has decided, in connection with the reopening of the stock exchanges, that fresh issues of capital must first be submitted to the Treasury for approval. The order added tliat issues in the United Kingdom would only be granted if advisable in the national interest. Issues of shares in concerns in the Overseas Dominions would be allowed where they were proved to be of urgency or where special circumstances existed. The Treasury would not insist on restrictions where issues were required for the renewal of Treasury bills and other short-dated instruments of foreign or colonial Governments, municipalities, or railway companies.