DOMESTIC BORROWING

Taranaki Daily News, 6 June 1930, Page 14

DOMESTIC BORROWING

GOVERNMENT’S INTENTIONS. “SUFFICIENT SUM” REQUIRED. An important statement on the Government’s borrowing policy was made this week by a high financial authority in Wellington. There has been some criticism of the Government for its internal borrow-ing programme, not alone because of the fact that securities have been marketed at a higher rate of interest than previously, but because these Government bonds have been sold, over the counter for an" indefinite period, and for an unstated amount. Certain financial quarters have thought it advisable that the amount of money to be raised internally should be known for the purpose of allowing the financial world to know where it stands in relation to Government absorption of available funds. “The amount which the Government will raise internally will be tho difference between the unexpended loan moneys in hand and expenditure which is to be made this year,” said tho financial authority. “This amount may be arrived nt by adding to the annual expenditure, which is fixed by statute, the various votes which will be made in the House of Representatives. “At various times it has been urged that tho Government should go upon tho local market for a fixed sum, but that is not a wise proceeding, for it does not want the whole of the money in one lump; it needs it as the money is being spent. In marketing securities a saving in interest is effected, and the amount of the money raised is proportionate to tho State’s needs. As soon as a sufficient sum is raised the securities will be withdrawn from sale.”