WITHIN THE LIMIT

Southland Times, Issue 19347, 12 September 1924, Page 6

WITHIN THE LIMIT

CHECK ON BORROWING PREMIER ON STATE FINANCE (Our Parliamentary Reporter.) WELLINGTON. September 11. “1 am in the most difficult position in this, in that I have to find the money,” said the Prime Minister to-day, after listening to the claims of a very large deputation that urged the speedy prosecution of the Napier-Gisborne section of the East Coast Hallway. “In sp.te of the regard in which New Zealand is held by Home financiers,” continued Mr Massey, “it is not desirable to rush the London money market. I have a good idea as to the limits to which borrowing should go, and I intend to keep within them. Just at present the country is borrowing for other things, and it has to be admitted that electrical development, while perhaps not being so important as the railway, is an extremely important phase of our progress. Lately, money has had to be borrowed for re-lending purposes, although I do not think it will be necessary to keep on borrowing in that direction.

“I am asking our financial agents and the financial people in London,” added Mr Massey, “to provide the Dominion with more money—more than has been asked for for a long time—and I am glad to see that no objection has been raised.” Mr Massey told another deputation during the day that it was a good thing he was holding the key of the Dominion’s cash box, as there would be very little left if he were to accede to the demands for money that were coming before him.

During last year Mr Massey placed a loan of £5,000,000 in London, £3,000,000 of which was for public works, £1,000,000 for advances to settlers, and £1,000,000 for ad vances to workers. The issue was 44 per cent, at 95. The loan was subscribed four-fold, and moreover, went to a small premium. It was the most satisfactory rate secured for any of the Dominions, and led to flattering notices in the English financial press.