EDITORIAL NOTES AND COMMENTS.

Oamaru Mail, Volume XXIV, Issue 7496, 20 April 1899, Page 1

EDITORIAL NOTES AND COMMENTS.

The announcement made by the Premier that the interest on loans granted under the Advances to Settlers Act is to be redueed by a half per cant, -which means 4J per cent if the 1 per cent contribution towards the extinguishment of the principal be excluded, will be received with satisfaction thoughout the colony. There could be no more emphatic proof of the wisdom and safety of the Government's money-lending policy. If onehalf of thedolefulpredictionsof theopponents of that policy had been realised, instead of reducing the interest by a half par cent it would have been necessary to similarly increase it. It stands to reason that, not only must the loss which occurred while the bulk of the loan was lying idle have been made good, but that there can have been no losses, and that the Department must have been economically administered. If a loan raised at such a minimum, and under peculiarly disadvantageous circumstances, because it was the first negotiated at 3 per cent)., can be admiuiatared, notwithstanding all the initial difficulties, with such results, what may not be expected in connection with future transactions of the same character. There is every prospect that it will be possible to further reduce the rate of interest charged by the Government and that, before long money will be lent by the Department at3J per ceat. This is what we have to aim at, and when we have achieved this additional success, it wili be our duty to strive to have New Zealand placed on the " most-favored-nation " basis regarding the negotiating of loans with the Mother Country. There is no reason why the Government of this colony should pay more than per cent, in the present condition of the money market, and lend at 3J. This cheapening of money through State intervention is as good to the producer as an enhanced price for grain and wool, and will enable New Zealand, notwithstanding the handicap of great distance from the markets of the world, to compete with all comers.