The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, SEPTEMBER 12, 1894. CHEAP MONEY.

Pahiatua Herald, Volume II, Issue 201, 12 September 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, SEPTEMBER 12, 1894. CHEAP MONEY.

The main features of the Bill which is to afford lin&noial aid to settlers an before us and we confess to a feeling of disappointment, but those may disappear perhaps when the real intentions of the Oavoonment are made clear in debate. There are three distinct epochs in the short distory of this cheap money scheme. The first intimation the public received was shortly after the death of the late Premier, when a pigeon-holed document was brought to light and publish d in the press of the colony. This document gave the outlines of a scheme for aiding those requiring money by reducing the rate of interest much below that charged by private money lenders. In this scheme, how ever, the Government merely guaranteed the lender against the loss of principal and interest. The prepounder of this scheme was Mr J. K. W&rhurton, the present Public Trustee, to whom - very credit is due for bringing tin' mu tier before tho Government in a practical manner. The next step was that the scheme received the hall mark of ministerial approval and was embodied in the Financial Statement., hut modified to suit the timos ; and now as a third step we have the precis of the Bill, with whioh we are dis appointed. The Bill is distinctly a new proposal and totally different from the details previously given. In tho Budget the amount to be raised was put down at £1,600,000, and, quoting from tho Budget, “It may not follow that in the course of a year the whole amount named will he raised for the purpose of advances. If, for i" s', nlo, appro'ed loans amounted to IoOUIOO. then inscribed stock for in Id b raised.” The ■ I - : ‘ Hl||( Sidy, for it pro I e had v> ii.it not required in any on, yar is to b earned forward t > ibe next, This does not appear to he commendable, and we would much prefer ims eng just what was required Him in tiie year, whether it be one millions, tn the Bill he Tri mror ha ly altered the rat of infcen it b paid for the inscribed stork. I’ll** Bud;;' ! gave it u Bill I I r e hi - Urn slocks have depreciated in tho

London market, and it would be rather diffioult, we imagine, to get the money required at anything under 4 per cent., notwithstanding that money is a drug in London. Having to pay a higher rate to the London lender, the margin left for the Government to work upon is one per cent., much too small to cover expenses and build up a sinking fund. The Bill provides that the Colonial Treasurer may raise money in New Zealand or elsewhere from time to time by land bonds, also for advances on mortgage. Every land bond for an advance out of the land bond fund shall be for not less than £lO, with interest at 84 per cent, payable half yearly. A land bond shall have the same currency as the mortgage for which it was issued, shall be payable to bearer, and shall pass by delivery without assignment or endorsement. We are at a loss to know what is meant by these land bonds. Their appearance is the same as that of an ordinary bank note, and they perform similar services, but are unlike bank notes in the fact that per cent, interest per annum is attached to them. They have the same currency as mortgages, but nothing is said about redeeming these bonds in gold. We are suspicious of inconvertible notes, and these land bonds look very much like the thin, end of the wedge. It is impossible to fairly criticise the measure from the meagre details now before us ; we must therefore wait till a copy of the Bill reaches ua, but judging from what has already been made public we think the Bill will have many objectionable features sufficient at any rate to prevent its securing a place in the Statute Books of the Colony; and the attitude of the Government tempts us to say that its rejection is desired.