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Poverty Bay Herald, Volume XXXX, Issue 13093, 5 June 1913, Page 7

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HON. J. ALLEN'S STORY OF

SUCCESS

HOW THE LOAN WAS RAISED

NAVAL POLICY NOT DISCLOSED

(Per Press Association.)

AUCKLAND, last night. [ A large gathering assembled in the Town Hall to-night at the welcome tendered to the Hon. James Allen on his return from England. The function was held under the auspices of the Auckland Women's Political Reform League, and was a great success. Mr J. P. Campbell (President of the Reform Club) presided, and was supported by the Prime Minister and the Hon. James Allen. Other members of the Ministry present were : Hons. W. H. Herries, R. Heaton Rhodes, and Dr. Pomare. Amongst others present were : Messrs J. H. Bradney, F. W. Lang, F. Manner, J. S. Dickson, A. Harris, J. A. Young, R. F. Bollard, and H. M. Campbell, M.P.'s.

Mr Allen, who was very heartily received, expressed hearty thanks for the welcome extended to him.

Referring to the Public Service Commission, Mr Allen said that by the Commission the Reform Party had taken out of its hands an opportunity to reward its supporters. He asked his hearers to support the party in its endeavor to clear the atmosphere of political support and political patronage. Possibly some people who had been expecting rewards from their Mends who had come into office might be disappointed, but he asked honest men and women to support those who had deliberately given up an opportunity to give such rewards.

Mr Allen said that his chief business was to tell his audience something of what he had gone to England to do. His report would be in th© Prime Minister's hands that night. New Zealand stood higher to-day, he said, in the estimation of England and Canada (than it ever had done before, and this, he claimed, was the result of the success of the Reform Party and of the opinion in England and Canada as to what it would do in the future. The change of Government was the reason why New Zealand had. such a high standing now in England.

It cost a great deal to float an inscribed stock loan^ — 1 per cent to the underwriter, i per cent to the Bank of England, \ per cent to the broker for finding the underwriters, and 12s 6d per cent, as stamp duty to the British Government. All these costs were repeated every time a loan was floated. Two loans lately raised by the late Government had cost all those charges, and next year would cost every penny of them again. NO EXTRAVAGANCE. The loon, he had himself raised had been obtained at a most unfavorable time, and he claimed no credit for having raised it, except that he had been able to convince those at Homo that New Zealand was sound at heart and was not going to be extravagant. The cost of this loan was £4 5s 6d, and no such loan had been floated in New Zealand for many years. It' had been stated that the Dominion had to pay £4 5s 6d for 50 years. This was not correct, as the Government had the option of paying off the whole amount at the expiration of 30 years if it was to the country's advantage to do so. It had been charged against the Government that it had neglected to make I provision for the wants of the Dominion. In reply to this, all . he could say was that the Government had made provision for meeting responsibilities which had been left . them by their predecessors. Having absolved themselves from responsibility, they were in a better position than before. During his visit an additional £350,000 had been raised, and on better terms than the £3,000,000 had been obtained. In a few weeks after the £3,000,000 loan had been issued nearly every penny of the amount had been taken up by genuine solid investors. He did not believe that such a thing had ever occurred before in connection with anv New Zealand loan. The additional amount of £350,000 loan money had not yet been allocated, and he wn.s going to consult his colleagues regarding the allocation of it. He hoped that £350,000 would not be the. last of the new money. THE NAVAL POLICY. Referring to the question of the Dominion's naval policy, Mr Allen said the Prime Minister had not yet had time to peruse the proposals brought back by the speaker, and neither could he explain just yet what those proposals were. "I do say this much, however, I believe 1 know the country well enough to have the assurance in my own mind that it is patriotic and believes in the Empire. People realise, though, that New Zealand cannot stand alone — that it would not be wise to .attempt to do so, anu that it is sound policy for each of the parts of the Empire to do its part in keeping open the sea pathways upon which to a great extent the safety of the Empire depends. Definite proposals concerning the New Zealand naval policy will be put before tho country by the Prime Minister before long.' In conclusion, Mr Allen explained his proposals in regard to the expeditionary force, and resumed his seat amid loud applause. THE PP-BJMIER. The Prime Minister thanked the audience for the honor done to Mr Allen, the Reform Party, the Government, and himself. After referring to the success achieved by Mr Allen in respect to the raising of loans, Mr Massey said that when he had gone Home the country could take no risks. The finances of the Dominion had got into a much more unsatisfactory state than any member knew, and Mr Allen, said the Prime Minister, had been unfortunate in having to go Home when the money market was very bad, and yet had managed to raise a loan at a lower rate of interest than the country had been able to do during the last three . years. This fact spoke not only for the financial ability of the Minister for Finance, but for the esteem in which the credit of the country was held in the London money market.

He referred to the fact that the Reform Government had brought down a genuine surplus of £700,000, but added that not a single sixpence of this would be expended without the authority of Parliament. When this was secured sums would be available for advances to settlers and workers for acquiring land for settlement and for the development of the country generally. Mr Massey referred to various planks of the Government's platform on the lines of previous speeches. In regard to the Waihi strike, he said the Government ' had been attacked for the policy that it had followed on that occasion, but if there was a similar strike the Government would again do the same thing. (Loud applause). Although the Government would not be afraid to face an election to-morrow he did not think they would have a dissolution this session. Ho believed that a large majority of the people of the Dominion were in favor of the policy of the Government. Speeches were made by Mr Herries and Dr. Pomare. '