THE COLONY'S FINANCES.

Otago Daily Times, Issue 11795, 26 July 1900, Page 6

THE COLONY'S FINANCES.

WHERE DID THE LAST LOAN COME FROM?

(Fbou Ouu O»:i Correspondent.)

WELLINGTON, July 25

For some time past hou. members who go into the question of finance have had their eye on n new item in this year's balance sheet of the Bank of New Zealand. The item in question is " Money at call and short notice, bills receivable, Government securities, and other securities in London. £2,667,636." The presumption of lion, members is that the Government had to raise their last loan through the Bank of New Zealand in London. The matter was referred to in the House this after-

After all the questions had been disposed of, the House proceeded to deal with the iictices of motion, and the first on the lift happened to be in the name of Mr Oames Allen, who moved for a return showing all the moneys raised by loan or debentures since the 31st March, 1899, setting forth the purposes for which the moneys were borrowed, and the terms on which they were raised.

The motion apparently was an embarrassing otic for the Premier, who moved the adjournment of the debate, remarking that it might injure the finances of the colony if the Government wero to disclose what they were

doing. Captain Russell protested against this refusal on the part of the Premier to grant this return. He could not understand how it would prejudice the financial position of the colony, seeing that the information asked for was in reference to loans raised over a year ago. He wont on to refer to the above quoted item in the balance sheet of the Bank of New Zealand, and said ho imagined that it was from the Bank of New Zealand that a great portion of this money, had been got. There was this year a huge sum mentioned in excess of anything that had appeared under such a- heading in previous balance sheets, and this would seem to point to the conclusion that debentures and loans had been raised from the Bank of .New Zealand.

Mr Seddon interjected: If it is already clone the House cannot help it. Captain Russell: No, but it is the first duty of the Treasurer to. inform the House of such a transaction as that.

Mr Thomson (Clutha) said such remarks a? had been made by the Premier only incited the curiosity of members. It "appeared to him that .things were not altogether right. Mr Morrison did not think the time was opportune for giving the information. _ Assuming that the transaction was as stated, it was no doubt done by'the bank with the idea of trying to make money, and no doubt the financial-advisers of tlio Government would recommend them that the arrangement was advantageous. If there had been any financial juggling between the Government and the Bank of New. Zealand, there was reason for inquiry, and that was a good reason for the adjournment of the debate. Eventually the motion was talked out by Mr Wilford. Not, however, before the latter was somewhat severely rebuked by the Premier. '