THE Temuka Leader. TUESDAY JUNE 1.1909 HOW TO GET MONEY.

Temuka Leader, Issue 5824, 1 June 1909, Page 2

THE Temuka Leader. TUESDAY JUNE 1.1909 HOW TO GET MONEY.

W’e have receded a eirenlar letter (ontaining a sugges-tion regarding the t'i-1 ief of the present hnanelal depression from which the country suiters. The suggestion comes Irom Mr 1!. Dawson, of Wellington, and it is contained in the following - The Public Trustee to lie directed 11 to advertise in the Dinted Kingdom, " and also, sav. in Am-t ralia, that lie “is empowered bv bis t lo\ eminent to “net as agent for capitalists who "mav be desirous of lending money “on mortgage of real estate within ■■ Hie Dominion, Interest at tin- ra I - "of four I 'IT cent . net, to be paid

" ipiarterK' or half-vearlv in l.ondon. or -neh other p I - u - e or places a- " lein !rr- mav direct, Indi’. idual sum. ■- of a minimum of Colin lo in- accept- " .-il for minimum periods oi live ,\ ears. ■ ‘ Seeiiri 1 of all nume\ o ent ruste,! ( o the a - n-i ii - V oi the I b i bl ir I ru -1. - - ■■ |o I e ,a b-olu I el v as-ur-d by 1 T; " live enactment bv (bn Parliament of " \ew /n.al and. Snl oe, pie,, t K I pro • • I .O ed t ba t . at (be on t ;-e( , Dll- selieine " in i- - b I be eon (i ip •• I I o lon n - on ag ri - “ eiilmral .and pa-Tnal propel lie , ) e; i \ II," other ■ nine, S to -llpplv ad vane - re.pliivil on land of other dc. '' -erii it ions. Dll ima I "I v . t be selieine " in 1 c w i- li-ne, | to eml irai-e. a s fir -t ■ ■ | ,r, ipo-ed, all classes ot real elate “ 11 n n a ■' b a 1 1 1 v on beeonoirg -ucee . - fnll v 1 ‘ ,1 abb -he. I in its re-! riet.-d f. inn ” This selieine has been subiniiled 111 Hie Dr.anjer, bill of Course he condemn ~ | j I Sir .1 . (I, Ward al wn v "on li'inns anything Hint does not origin-

ato in bis own brain, and as nothing 1 originates there, the result is nothing . (so far as constructive politics are con- I cerued, There are some objections _to J , JUr Dawson’s scheme, but the objection | aised by Sir J, C!. Ward is simply I nonsense. Sir J. U. Ward condemned J the proposal on the ground that the ! London Stock Exchange mmht object and injure our credit. Sir d. G. Ward lias noe the courage of the lute Mr Seddon. The London Stock Exchange in, we believe, 11)03, made an attempt to destroy our credit by refusing to subscribe to our loans. ’The result was that the loan had to Ire underwritten by, it is saiti, the Bank of New Zealand. What did Mr Seddon do next session ? Ho simply put a clause iii the Loan Act, enabling him to raise money “elsewhere.” That meant that ho could go to New Work, or Paris, or anywhere else he liked, and this brought the Stock Exchange to its senses. The Stock Exchange has not attempted to boycott our loans since. Hero is the dill'erence between the late Mr Seddon and Sir ,1. (1. Ward, Here is exhibited the lionhearted courage of the one, and the trembling timidity of the other. Sir •I. (L Ward shakes like an aspen leaf at the possibility of giving offence to the English money-lender, and to al-

lay his nervousness Mr Dawson addressed to him a very long letter, in which lie proved most elaborately that Sir J. G. Ward is labouring under a delusion. Mr Dawson’s elaborate explanation is very clever, but he, need : not have gone to half the trouble. The following extracts from his circular answered the Premier's objection with a logical force that onld not be (urinsuid : “ It lias also been mentioned to the -l Prime Minister,'ns a. reason why the ’ ‘ Stock Exchange should . yot oppose ( “ the proposal, that the money sought “is not intended for purposes for , “ which Colonial Governments (as a whole) borrow), i.e.. for public pur- “ poses, but is to be solely ‘applied to “ meet private needs. Tt would, plain- “ Iv. be beneficial to the entire body politic to hasten conversion of our “ largo areas of unproductive land in“to a condition of productiveness. “ With hi'di interest charges that do- “ sirable consummation must lie long “ delayed, but if capital be provided “ for that purpose, at rales not ex- “ (‘ceding 5 per cent., the change will “bo rapid, and industrial aetivil, “ also will be widely stimulated, Tt , “ would scorn beyond the region of “ doubt, divat if the Stock Exchange “ really did manifest a disposition to

‘‘ oppose us in this unit tor, wo oouhl “ advance arguments in support of “ (In 1 schema that would dispel (he opposition.” The money involve'! in Mr Dawson s schema wouhl no( clash with Stock ■ Fxclmnee transactions in (he slightest decree. and although wo are siirnriscd i at ~ how little Sir d. C. Ward knows, ’ we are unite certain he knows that. Mr Dawson may rest assured of (Ids; I Ills scheme is sound, pradi'a!, am. i practicable, and absolutely the best thine' that could bo don* at present, 1 but we do not mind saviny that Sir ,1. C. Ward will deslrov it. Some years ayo Sir d. (1. Ward, in a public speech, said that he found it impossible to formulate a scheme to meet the .Millers’ Trusb case. The writer of this ■article sujorcsled to Sir <l. (1. Ward, personally, to hand the matter o\ei to the Arbitration Court, with power to j\x the price of Hour and bread at such as would bear a fair ratio to the average price of wheat. I hat was as simple, as practical, and as sound as Mr Dawson’s proposal, and a Dill was introduced into Parliament deal'mc with it. U was a most awful thiny. It proposed to create a Spocial Court, with a whole army of police- inspectors. factory inspectors, policemen, and so on : Factory Ads. Labour Laws, d hoe oinne wer* incorporated with it, and thus the greatest legislative monstrosity (hat could be conceived was introduced, and of course Parliament did not pass it. The ipiestlon remained dormant for a while, and then was passed that miserable fiasco called Ihe Flour and other Commodities Act, The original suc'yestiou of placing Dm matter in the hands of the Anhlration Court wtis adopted in this Ad. but c\crythino else was omitted. We merely mention this to warn Mr Dawson of what he may expect. Mr Dawson’s scheme will, we think, have to be taken up, lull it will be trea'ed as e-ypsics use, stolen children. The Lfypsies break the bones of the children they steal, and otherwise deform them so that their parents shall not know them. That is exactly Sir •). C. Ward s method of dealing with schemes sucyested to him, and Mr Dawson will find it out. lie will Hud that when it is formulated into law, it will be as useless as the flour and other Commodities Act, which remains a dead letter.

As an immediate palliative, we arc perfectly satisfied that Mr Dawson's suggestion is absolutely sound, ami that it ought to lie given elVeel to, but at the same time we must point out that it contains the worst clem nt in our public policy ; it is simply nothing more nor less than fun her foreign borrowing. We want money immediately to relieve the present pressure. and .Mr Dawson's scheme is well calculated to do that, but. if persisted in for il great number of years. it would bring' on ruin. .Mr Dawsm, in his circular, says that avhal is wrong with this country is that it has not capita! enough to enable il (o transact its business. That is probably correct. but w-lmt is the cause of (his; We oriiduec far more than we consume, therefore we ought to be making money ; why is It that w ■ an- not doing it '! Simply been us,. j| goes to pay for the goods W' import, and tin- > interest, on the inonev wc have bor-1 rowed abroad. The ipiestion of imI'orts n not being invohed at pre-mat. We -hell inen-K point out dial Mr Diw-on's scheme o 11 1 d increa-c our foreign I ia! ul i (i-s. and therefore increase the sum w hleli we would haw I-1 pay a nnna Ily (o the h u rig n e;-e Ii - tors. Il is this annual drain on our

risotines that prevents the .aeeiiinubn t'on of local capital, and Mr Daw--on .-. -ehcinc would i man-a-e the drain. Hi- se|||.|||e i - a|l e\ee| I, II I "lils I aid, lull a -neon who will -( a murn I lie wound HiroUgh v, 11 ie 1, ,>ll r life blood i ebbing fa t . inns' be eaHe. i in. Tips i- a "111 e I e, >1 f- T M r I law >n. I. him eel I a I. eel , ee on hi -pi e - ( I Topo ai, and in "'.p' ing Ibe 11-n:;d tael i,-.- We hope -A e b;I 'i • 11-| I leg el 111 111 111. I. ( e|-| a I i (.lie-. We -hall 'to i! 1 1 -a render bun a ! tll if, ■ a 1 ’ i- i 11 . ;di n; ■ nll llie wonin I i u-i'in.a lea 111 -g, bn l one Hiin" a! a I mu- \ I am rale 'I- I no, II- t Cl- d 'bat o b,n - neba ' I o pa ( o f. ae| ■net e•■ ■ ; V we bailie bard up.