THE COLONIAL BANKS' ASSISTANCE.

Otago Witness, Issue 1905, 25 May 1888, Page 11

THE COLONIAL BANKS' ASSISTANCE.

With reference to the Treasurer's statement to the House on Thursday that it was through the assistance of the Colonial Bank that he was enabled to carry on under the awkward situation that arose from the error in the wording of the Loan Act of last session, we find upon inquiry that the facts are as follows : — On the error coming to light the Treasurer applied to the Colonial Bank for the whole of the sum of £100,000 authorised to be raised for three years under the Public Revenues Act to meet the accumulation of deficiencies until the Colony could better afford to provide for these back debts out of revenue. The money was required by the Government at the time in London, and the whole sum was advanced by the Bank at once in London at 5 per cent, net — i.e., without any charges foi agency or exchange, such as have been customary in previous transactions of the kind. It is a matter for congratulation that a purely colonial institution like the Colonial Bank should have been able to come forward in an emergency like this and render the assistance necessary to prevent a special meeting of Parliament or the going upon the London market under conditions which would have seriously affected our credit. It is also worth noticing that the time thus gained by the Government is likely to be doubly valuable iD that the two million loan about to be placed on the market will now enjoy the full benefit of the rise in the value of colonial securities consequent upon Mr Goschen's scheme for converting the 3 per cent, consols into 2$ and 2| per cent.