DOMINION FINANCE.

Stratford Evening Post, Volume XXXX, Issue 59, 26 October 1914, Page 8

DOMINION FINANCE.

STATEMENT BY THE MINISTER.

£Phh Pueee Ahbooiation.l Auckland, October 24

Complete confidence in the condition of the Dominion’s public finances was expressed by the Minister tor Finance on Saturday. “Considering the times wc are in, the financial position ot New Zealand is especially good,’’ Mr Allen stated. “There can be no question about it. I have no hesitation in saying that so tar as the finances ot the country are concerned, there can be no comparison between the conditions to-day and the conditions we found when the Government took office. The position is insuperably better, especially the condition of the State Advances Funds and the Public Works Fund.” Mr Allen said a Loan Bill will be introduced in the House of Representatives on Tuesday, and he will then make an important statement regarding financial matters. Recent criticisms of the Government’s borrowing policy will be answered by a complete review.of its loan operations, in comparison with the transactions of its predecessors. A statement of the present condition of the public funds'will be given, and the Minister will also discuss prosepets of the future. Mr Allen explained that the expenditure for military purposes is being met by funds raised through the Bank of England on Treasury bills on very favorable terms. Sufficient funds remain from the last loan to continue public works, and since the latter are of essential importance, the reduction in the advances to local authorities and others has been made so that the balances in these funds may be temporal’-, ily used for public works The position in regard to the uriconverted portion of the five million loan, amounting to £3,200,000, which .matured in December, is not satisfactory, as the attitude adopted by the subscribers of the loan makes it necessary to raise a new loan to repay the money. The holders of debentures refuse to renew them, to convert them into stock, or even to sell them, so that the loan must be repaid. Mr Allen said he ex-, pects it will be necessary to obtain the moneys to repay the loan by issuing Treasury bills.

The Mother Country is going to raise a loan next year to pay off the Treasury hills, which she is now issuing at the rate of £15,000,000 a month. Mr Allen stated: “We have every reason to believe that the Imperial authorities will make provision in that Ipan for the requirements of New Zealand, securing for us a sufficient amount to enable us to pay off our Treasury bills, in addition to the loan for which the Government is seeking authorisation. That loan‘will probably be for a long term, but in any case we can be quite certain that it will be raised by the Mother Country on more favorable terms than anyone else will be able to secure.”