RAISING LONDON LOAN.

New Zealand Herald, Volume LVIII, Issue 17782, 16 May 1921, Page 6

RAISING LONDON LOAN.

mr. massey's first task. urgent need for funds, many Projects hampered[BY XELEGKAPH. —PRESS ASSOCIATION.] WELLINGTON, Sunday. The Prime Minister, the Et. Hon. "W. F. Massey, will reach the end of next week and will proceed at once to inquire regarding tho possibility of raising a loan for public works, soldier settlement and other purposes. The sum he mentioned during the recent session Parliament was £5,000,000, and his colleagues in New Zealand would be very much relieved to learn that he had been able to obtain it. The present position is that authorisations for hydro-electric development, railway construction and other public works as well as for soldier settlement, are much in" excess N of the funds'available. The Consolidated Fund has already made heavy transfers to the Public Works Fund, and very little more can be done at present in this direction. The raising of a substantial loan in London during the next month or two would have several very important effects. It would strengthen the Consolidated Fund by making possible the repayment-of money transferred to the Public Works 'Fund, it would make easier the handling of the unemployment problem, since the Government would be able to proceed confidently with some- of the large works that axe already hi handy or have been planned; it would also enable the Lands Department to give increased support to the soldier settlement scheme. New Zealand's credit, in London undoubtedly is good. The proved ability of the Dominion to. raise very Jargie sums of money within its own borders has drawn favourable comment from London Though the money market will probably not look unfavourably on a New Zealand loan, the huge funding operation that has been taken in hand by tfhe British Government may be an obstacle in tho way. A recent London cablegram stated that the Imperial authorities were delaying the issue of. colonial loans, pending tho > jjihis Operation, which involves the funding Jaf about £600,000,000 of floating debt/