Poverty Bay Herald.

Poverty Bay Herald, Volume XVI, Issue 5576, 23 September 1889, Page 2

Poverty Bay Herald.

PUB LI SHED E VER V E YEN ING

GISnOUNE, MONDAY, SEP TEMBSR 23, ISjO. CHEAP MONEY. Tiikhe is no country in the world so much interested as New Zealand in the rates uf interest. The reason of this is existing indebtedness. At one time the only financial question that troubled the colony was the prospects of the next loan, but the lo:m was not required to reduce the burden of the interest or to pay off an old score. It was simply a piling on of the debt. Although the countries of the Old World could obtain money at three per cent. , New Zealand cheerfully gave five, and would most probably have given more if the loans could not have been raised at a cheaper rate. The colony has now paid in the shape of interest a sum nearly equal to the amount borrowed, and the debt still remains. The indebtedness is enormous, and the rate of interest is altogether too high, considering the nature of tiie security. There is no hope of reducing the debt for a long time, and, therefore, the only hope of relief centres in the lowering of the annual charge of the interest. There is excellent prospect that in this direction the burden will be materially lessened. The conversion of the debt is the great question of the immediate future. All othei matters are of little moment in comparison, Throughout the country there has been great dissatisfaction expressed .at the proceedings of the session just closed. Parliai jnent certainly displayed inefficiency in conducting the business of the country, but, all things considered, the session should be regarded as eminently satisfactory. Our legislators are capable of accomplishing a great deal more harm | than good. Necessary legislation may have Wen neglected, but Parliament Ins

been very pronounced in expressing »v upiitiuiiHyMijt.it inoruaaiilfjf the buivlon of tins debt, nd that font ur@ of the session I more than counterbalances all other deficiencies. The opposition to loanraising must have a highly beneficial effect on tho credit of the "colony, and should more than anything else contribute to the successful floating of conversion loans, the only loans that well-wishers of the colony should desire to see placed on the i market for a generation at least. There are two five per cent, loans, amounting to L1.C00.000, falling due shortly, nnd the Government intend to convert them into 3h per cent, stock. The r.ink of England has undertaken to float the loan at 97, but a private letter from London states that it is believed that it will go off fit more than par. If the hitter expectation be realised there will be a saving to tho colony of L 24.000 per annum. Other loans will mature in the course of the next two or three years, find will be similarly operated upon. By that time the credit of New Zealand may have so enhanced that something approaching parmay be obtainable for a three per cent, loan. Last year Canada placed in the market a three per cent, loan at a minimum of 92, and the price realised was 95. Money has become cheaper since then, and colonial securities have come more into favor. Probably the Dominion could at the present dtiy obtain a three per cent, loan at par. The city of Now York can raise money at that figure, and one Avould imagine that tho broad territory of British North America afforded better security than a municipality. t The same remark applies with equal force to any of the Australian colonies. ■ Whether the colonies become federated or not, the time is not far dis- , taut when each will be able to obtain money on as favorable terms as the leading countries of the Old World. The annual charge on the public debt of ' XowZoalandaniounts to about £1,800.000. Tf all the loans were converted into three per cents, there would be a saving, in round numbers, of L 600,000 per annum, which would practically be equivalent to a reduction of the public debt by one-third. In addition to the public indebtedness, the I sum of L 29,000,000 has been advanced by i way of mortgage on real property. Other 1 debts are calculated to amount to L 29,000, nearly the whole of which must be bearing interest. Public and private indebtedness of various kinds is not far short of one hundred million sterling. Apart from any idea of increasing the indebtedness, the question of interest must bo regarded as of supreme importance. ! The financial position of the Government is general in effect, If the colony is able to obtain money at 3 or 3^ per cent, to pay ; off old debts, the rates of interest will be lowered on all other kinds of securities.

Mr Booth, R.M., left for Wairoa this morning. Captain Chrisp advertises that he has several properties in town and country for s;\le. We learn that it is in contemplation to apply to the Native Land Court to have ihe long-standing Makauri case decided under the provisions of the Poututu Jurisdiction Act, as it claimed that Makauri comes within the scope of that enactment. A copy of the Native Lund Court liill, as finally passed the Legislature, has been received from Wellington by Mr Harris, to whom we arc indebted for a perusal of the measure. Jt is practically the same as published by us on Monday last, the alterations made being of no importance. The Union Literary Society close their present session on Thursday next, with a conversazione! in tho new schoolroom. The Committee are anxious to make this final meeting a success, and invite contributions from all members of tho Church Union, whether members of the Society or not. These may take the form of objects of interest, curiosities of literature, or original writings on any subject, grave or gay. There is every promise of a very enjoyable evening to form a fitting close to a most successful session. Invitations have been sent to tho kindred societies, and the Committee hope that their members will be present in strong force. At a meeting of the Committee of the Wuerenga-a-hika Jockey Club held on Saturday at the Masonic Hotel, the following programme was arranged for Boxing Day :— Maiden Plate 20 soys, Boxing Day Handicap 100 soys, Hurdles 60 soys, Hack Hurdles 10 soys, Flying 40 soys, Hack Flat 10 soys, Forced Handicap 20 soys, totalling 2GO soys. Mr Nasmith, who has for some years acted as Secretary, tendered his resignation of the position. In accepting it the President and other members of the Club paid a high compliment to the retiring Secretary, who explained thab he keenly felt separating himself from tho Club, having been connected with it since its formation. It was decided to record upon the minutes the value of Mr Nasmith's services and to further make a more substantial recognition. An accident occurred at the Kaiteratahi river on Saturday which should induce the County Council to take some immediate steps to improve qhe entrance into tne river. A trap, containing Mrs Simmons and two children, and driven by one of Mr Devery's drivers, capsized on this side of the crossing through one of the wheels going over a bank. The descent is too sudden from the bank into tho water. A considerable quantity cf wool got wet crossing the same river last year, and unless something ia done simitar damage may be expected during tho present season. A short time ago it was found necessary to make an approich a few chains higher up than the old crossing. This, owing to tho river cutting into the bank, and the traffic being confined to the approach, has caused a steep drop into the river. Union Literary Society— Last meeting of the session, Thursday, Sept. 20th. Conversazione in new Schoolroom. Curiosities, Waste Paper Basket. Contributions invifed from members and others. All will be welcomed. — Advt Ireland's national characteristics — Praties and poteen. Tho "Ballyhooly" Blucher at Henncssy's, Os 6d per pair, slashing value. — Advt.