CAREFUL FINANCE.

Otago Daily Times, Issue 19107, 28 February 1924, Page 2

CAREFUL FINANCE.

government discourages BOOM. (Fbou Onn Own Borbmpondbnt) WELLINGTON, February 26. In the (fflirse of an interview the Prime Minister said : “ There is a tendency at present to encourage unnecessarily heavy expenditure. The Government is not out to encourage a looni, and wdl not do so. The policy of the Government, is to keep on with the development of the country, and especially in those directions where the objects upon which the money expended ■will return a rate of interest equal to Tat which we have to pay for our loans. At present the tendency of interest for loan moneys is upwards. The Federal Government of Australia, is offering 6 per cent, at par, free of State income tax. for approximately £20,000.000. New South Wales, Victoria, and South Australia are all issuing loans at (Tie same rale, and on the same terms, whilst, it is understood that Queensland, Western Australia, and Tasmania are also going on the market later on. It should He remembered also that Japan has on the market, a 6 per cent, loan of £25,000.000 at 87i, equivalent to 7.10 per cent. The credit of New Zealand remains good, and when it becomes necessary for us to go to England for a loan I am confident, that we shall he_ able to get- it below the rate being offered by other British countries. All the same, care and economy, both publicly and privately, require to be exercised. We have had during the last few years an experience of depression. and we must avoid a rpeillion of anything of the sort by twery means in our power.”