THE FINANCIAL POSITION.

Otago Witness, Issue 2883, 23 June 1909, Page 14

THE FIN ANCIAL POSITION.

DRIVING AWAY CAPITAL. PUBLIC DEBT NEABING £71,000,000 CRITICISM, AND A REPLY. (Fkoic Oub Own Coseespondent.; WELLINGTON, June 15. Every day brings forth -fresh evidence to show the urgent necessity for the non interruption of the present session oi Parliament. .The fact that an important Finance Bill has to be hurried through practically at one sitting of the House is one fact that cannot be ignored. It w has to be agreed to, moreover, in the absence of important returns and statements that cannot possibly be placed in the hands of members. The provisions of the Finance Bill itself are such as to make it apparent that" a dangerous precedent is being established, or, at all events perpetuated. . ' Mr Massey to-day- said there were some proposals in the bill in "regard to which he would' sooner walk out of the House than assent to. He made pointed reference to the proposal to vote £200,000 for unauthorised expenditure-j-an increase of £50,000. Clause Bof the bill he regarded as positively dangerous, because it gave the Government power to start new works without the sanction of Parliament. He maintained that the Estimates should have been brought down if the Government was going to start new works. From his point of view it might perhaps be better not to make these objections, because, judging from the utterances they had already had from the Ministerial benches this, session, it was evident that they had only to give the Ministry rope enough and they would hang themselves. A striking instance of the' attitude of the Government supporters in regard to finance was to be found in the appearance of the House while the Leader of the Opposition was making an important speech. Apart from the members of the Ministry, there were only 10 membersof the Government party in the Chamber lhe Leader of the Opposition blamed the present Government a good deal for the present depression, because, though often warned on the subject during recent years, it had macle no provision fov a rainy day. On the contrary, it had gone on spending and squandering. The subject of borrowing on short-dated debentures also occupied the attention of the Leader of the Opposition, who- pointed aut that it must necessarily be very embarrassing to the Prime Minister's finance. It was true that some of these shortlated debentures were being converted into inscribed stock, but at what a cost £. *£"; <*>untry 1 Last year the sum of bl,«sO2.000 was converted at a cost ot £36,958. In addition, there was an unount of £8454 for stamp duty, so that he cost to the country of this. conversion .vaa between £40,000 and £50,000. It .vas no wonder that the debt of the Dominion was mounting up when they found added to it such large sums as -hese, for # which mo value was received. tn regard to the present financial strinjency, Mr Massey gave instances in which :apital had left the country. One instance had been brought under his notice a which 20 of our best settlers went o Australia with £150,000. These men lad from £3000 to £15,000 each. It vaa no wonder, added Mr Massey, that nen had difficulty in securing employnent. The attitude of the Government n regard to the freehold, he pointed out, vas largely responsible tor this state ot ,ffairs. Mr Jennings (a Government supK)rter) : You are righJ there. Mr Massey : I hope the hon. gentleman /ill support me when the time comes. Mr Jennings : I will; I will. Mr Buchanan, who spoke later, said it ras fao wonder that capital was leaving he country when those who had their loney invested in land were called enmials from the Ministerial benches. — " Hear, hear.") The fact of the matter 'as that capital had lost confidence beause it was not getting fair treatment rora the present Administration. Mr Herdman stated that he knew of case in Otago in whirh £250,000 was ithdrawn and sent to the Argentine. During the course of the morning projedings the Pijme Minister, in reply to demand made earlier in the session, lid the public debt of the Dominion ad now reached £70,938,534. The in•ease for the year was £4,484 ; 637. Of lis sum, the Prime Minister maintained lat £2,800,000 is directly interestsaring. In. the course of a. speech to-night the rime Minister referred to the" alleged codus of settlers to Queensland. He ad be had received a from party in Queensland desiring to Invest stock in New Zealand. He charged tose who objected to the limit of £500 ■anted to settlers with having killed a ■opo*al to fix the limit at £5000. The

I talk of capital being driven out of th< country was nonsense. Companies wer< j leaving the country and taking million; i with them, but other companies wen ' coming in and investing money in th< country. During the last 12 months ovei four millions had been borrowed by fch< Government without a hitch, proving thai our credit was high, notwithstanding tht attempts to damage it. We should dc as the Canadians did, and exact a penalty from people endeavouring to damage th« credit of the country. ■ In Teply to a question by Mr Herdmanj Sir J. G. Wa*d stated that the increase ih public debt for the year wre made up as follows : — Aid to public works (1907), £191,800 r aid to public works (1908), £1,200.000 ; Hott railway and road improvements (1805-07), £69,500 ; Government Railwflv* Ait (1908)7 £145,000; , Wellington and Jlanawatu Railway Act, I £1,000,000; past aiid telegraph (1908), £20,000; Land for Settlement Act, £211,495 ; local bodies* loans (1908), £250,000 ; Government advances to settlers (1908), £1.048,800 ; Government advances for workers, £123,500 ; New Zealand Consols Act (1894)', £124 ; increased by conversion, JG6928; for redemptions, £7520. The statement was ordered to be printed and laid upon the table.