The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. FRIDAY, SEPTEMBER 14, 1894. THE CHEAP MONEY SCHEME.

Pahiatua Herald, Volume II, Issue 202, 14 September 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. FRIDAY, SEPTEMBER 14, 1894. THE CHEAP MONEY SCHEME.

| l'i comments of the leading Sydney j jo rials, the Sydney Morning Herald | and oe Daily Ti legrapk, as cabled to j tie ■■ ilony a few days ago are caustic indt d, but it does not follow that lie, i ca , leading journals choose to ad\ I'soly criticise the scheme it : i mi reforo had and unsound. Tlie • mi oiMery provided by the Governlin ut for the working of the scheme is uumislakeably faulty, but the scheme itself is a sound one as it appears to us. The fundamental principle upon which the scheme is built up rests on a sound logical basis. To illustrate clearly what the cheap money scheme is, lot us imagine there are two banks of unequal size; the larger one in England is full to over-flowing and the sinallerone in New Zealand empty. A safe conduit pipe Is all that is necessary to cause a flow from the larger to the smaller tank. The London money market is overweighted with gold, while there is so little of it in New Zealand that it is only by pledging first-class securities at high rates of interest that it can be obtained. The Government acts the part of the conduit pipe, and the safety afforded by this pipe is unimpeachable. There are other ehun j nels for turning the goldon stream to New Zealand, such as banks and other financial institutions, and even private firms and individuals, but can any of { these compare to Government guar-| nnLie? Any doubts on this score will I so,m hi' dispelled if there is any reeolh el on of I bo I f .wper affair of Ghrist ; ciiur> ii with tie ir No. I Department, I which was to all intents and purposes j a in tncia I department for lendin mom y of English clients principally to the settlers of Now Zealand, and;' how well these private individuals per formed their task the records of the j * bankruptcy court will show. As re- ‘ gards financial institutions the episode j f of the flunk of Now Zealand must bu j , still fresh in the memory of the people )

of this colony. A grave crisis was averted by the colony coming to the aid of the Bank with State guarantee. It will be seen that if a safe channel is to be furnished, and safety is the principal consideration, for the yellow stream to find its way to New Zealand State guarantee is indispensable. Whether the machinery provided by the Government Advances to Settlers Bill for irrigating the colony after the inflow begins is adequate is another matter altogether. We believe the machinery to be faulty, but this can he repaired when the Bill gets into Committee. But what we desire to make elear is that the principle is sound and can be applied to New Zealand with absolute safety. That tho Bill will be strenuously opposed at every step there is not a shadow of doubt, for it outs at tho roots of many vested interests.