GOVERNMENT BORROWING

Sun (Auckland), Volume IV, Issue 982, 27 May 1930, Page 8

GOVERNMENT BORROWING

QUESTION OF INTERNA! LOANS POLICY OUTLINED Special to THE SCX WELLINGTON, Today An important statement ou the “i,. eminent s borrowing policy was nT today by a high financial author.t?* There has been some criticism the Government tor its internal bG rowing programme, not alone h tca “l oC the fact that securities have beT* marketed at a higher rate o- laten? than previously, but also because* the fact that these Government buiT have beeu sold over the counter an indefinite period and for an stated amount. Certain financiS quarters have thought it advisab’ that the amount of the money tu £ raised internally should be known the purpose of allowing the tinancfai ■world to know where it stands in lation to Government absorption * available funds. 01 “The amount which the Government will raise internally will be the differ enee between the unexpended loan moneys in hand and expenditure which is to be made this year." said the fin ancial authority. This amount mabe arrived at by adding to the annual expenidture, which is fixed bv statute the various voles which will "be tnafil in the House of Representatives. ’ ‘At various times it has been urged that the Government should go upon the local market for a fixed sum, bnt that is not a wise proceeding, for j* does not want the whole of the miner in one lump: it needs it as the monev is being spent. In marketing seeurities a saving in interest is effected and the amount of the money raised is proportionate to the State’s need--As soon as a sufficient sum is raised the securities will be withdrawn from sale.”