The Poverty Bay Herald AND East Ooast News Letter. PUBLISHED EVERY EVENING. Wednesday, November 12, 1879.

Poverty Bay Herald, Volume VI, Issue 948, 12 November 1879, Page 2

The Poverty Bay Herald AND East Ooast News Letter. PUBLISHED EVERY EVENING. Wednesday, November 12, 1879.

Some few nights back, the Hon. Mr. "Waterhouse, from his seat m the Legislative Council, raised a most important question. This was the enormous charges incurred m the present day m floating public loans as compared with former years. Mr. WaterHOUSE said he believed he was right m stating that the large loan negotiated through Sir William Fitzherbert cost something under \ per cent. ; but, if honorable members ■would look at the return lately placed upon the table giving particulars as to the cost of the last loan, they ■would see that the cost had been \\ per cent. ; so that the amount had tripled m the course of a very few years. He saw that at the present time the Colony was paying an entirely new charge of \ per cent, to the Bank of England. That was done m connection with the Inscription of Stock Act — an Act that seemed to have been carried into effect so fas as this payment was concerned, but no further. He was quite satisfied that no appreciable advantage had been derived from this Act m this way, nor was likely tc be. Further, he observed that, whereas three or four years ago a commission of Is. 6d. m the .£IOO was paid to the Crown Agents, these gentlemen now received a commission of 5 per cent., or more than threefold the amount which had been deemed sufficient only three or four years ago. There was the usual payment of 5 per cent., to brokers, who were the medium of forwarding

applications for bonds ; and there was another item, the most peculiar item that he had ever Been m connection with these loans, —

Sept. 4, 1878. — F. A. Scritngeour.comsion at 5 per cent, for services na brokers up to time of obtaining official quotation of the 10-40 £3,500,000 loan ... £8.750 0 0 A 'ditional brokerage, at J per cent, on £2011.000 applied Tor, ns ngreed £5,000 0 0 Lesscommi.sion paid hy the Bank of New Zeelaud on £960,100 £2,40^ 5 0 £2,699 15 0 £11,349 15 0

For the life of him he could not understand what the amount had been paid for. He did not speak m ignorance on the point, because he knew the arrangement under which similar transactions were entered into by the Agents-General of other colonies. There had been no loans more successfully negotiated than the loans of South Australia, and he was m a position to state m what manner those loans were negotiated. They availed themselves, as the New Zealand Government did. of the services of a consulting broker. These brokers were regularly consulted by the Agent-General of South Australia before he brought any loan whatever into the market, and it would no doubt rather astonish honorable members to hear that for thfse services the South Australian Government paid only £50 to £100. When the Agent-General of Australia was telling him (the Hon Mr. Waterhouse) of the circumstances, he remarked that be could not rmdei'stand brokers of so high a position devoting their attention to such work for so small a remuneration. The reply was, that consideration did not I influence such brokers for a single moment. The application was regarded as a tribute to their respectability and standing ; but the Government got as much attention as if a large sum had been paid. On the same ground, merchants occupying the highest position would trouble themselves to become direcr tors of banks, and devote every energy to the performance of their duty as such for the small remuneration, of a guinea or two a sitting, as the case might be. It was not a question of remuneration, but of the tribute to their respectability and worth which was paid by electing them to such positons. Whether the amount paid was too small or not might not be a question for consideration ; but what he wished to call attention to was that, for the same work which was performed by brokers for an insignificant remuneration, the N«w Zealand Government paid a sum of £11,300. It seemed to him that when persons were dealing with millions they were apt to become lavish. Mr. Waterhouse's motion for a enquiry into the cost of raising loans was carried, and a committee appointed to take evidence. It has been stated, wedonotknow with what exaggeration, if indeed there be exaggeration, that Sir Julius Vogel's share for the part he has taken m negotiating public loans has reached the handsome, sum of £60,000. So then the sonner this gross extravagance is dispensed with the better for every one, the loan agents alone excepted. Mr. Waterhouse did not single anyone out for condemnation, but the tenor of his remarks evidently pointed to Sir Julius Yogel as the one who is responsible for this waste of public money. If South Australia can get for £100 the same services for which we last year paid £1 1,300, there is evidently something wrong m connection with the raising of our loans. The re*ponsible party should be called upon for an explanation of the anomaly, and m future care should be taken not to leave these matters m the hands of men who can throw thousands away, where tens would do just as well.