COST OF LOANS.

Poverty Bay Herald, Volume XXXX, Issue 13102, 16 June 1913, Page 9

COST OF LOANS.

Commenting upon the Hon. W. Eraser's references at Waiau to the cost of loans, tho Lyttelton Times. says; '.'The Minister, if we may be permitted to say so without being suspected of 'abuse,' was scarcely fair 'to I the Liberal Government wlien comparing the cost of recent loans. Everyone can understand that when the cost' of raising a loan has to be charged to' two or three years instead of being distributed over 30 or 40 the sum looks large. But the real cost of last year's loan cannot be determined till ii< has to be renewed •16 or 17 months hence. Mr Myers, no douibt with the best advice available, 'in London, speculated on money being cheaper m 1914 than it: was m 1912, -while Mr Allen, with the same advice, speculated on money remaining dear till 1943. Of course, it saves a lot of worry to Ministers, as Mr Fraser said,' to borrow on long terms, but at 4^ per. cent, it does not necessarily save money* or even worry to the taxpayers. ' tVe sHall have to wait till the end. Of next 'year to see whether Mr Myers or Mr Allen followed the wiser course; and m the meantime we must obtain what comfort wo can from tho reflection that the cost of this year's loan can go no higher." What will our contemporary think about the. Allen "coup"— at £4' 5s 6d for a minimum term of 30 years — when it hears that the Minister of Finance told the New Zealand' Club ' that we may soon be able to borrow at 3£ per cent. ? And what' will the people of New Zealand think?— N.Z. Times.