THE CREDIT OF THE COLONY AT HOME. INTERVIEW WITH A LONDON FINANCIER.

Taranaki Herald, Volume XXXVII, Issue 8272, 19 September 1888, Page 2

THE CREDIT OF THE COLONY AT HOME. INTERVIEW WITH A LONDON FINANCIER.

Mr. William Westgarth, head of the celebrated financial firm of W. Westgnrth & Co., of 8, Finch Lane, London, E.C., who are amongst the reoognißed leading authorities in tho metropolis in matters relating to Australasian stocks, is at present making the tour of the principal parts of the colony, in company with Mrs. and Misß Westgarth, and at Wellinetou was interviewed by a reporter of the Post. GENERAL IMPRESSIONS OF NRW ZEALAND. Speaking as a tourist, Mr. Westgarth declared, with some enthusiasm, that he was charmed with what he hud seen of this colony up to the present time. Auckland, New Plymouth, Nelson, and Wellington had struck him and his family as being each beautiful in its own way, and each having variety enough to delight tbe traveller independent of the others, and the climate appeared to be most delicious. " Our impressions, so far, are of tbo most favourable kind," he observed, "everything, in faot, far bu -passes my expectations. You seem to want nothing but population, and that you certainly do need. Though matters are said to be .lull, I don't see any notable evidences of baa times ; the labouring classes have high wages and comfort on every side. Of course you have a heavy colonial debt and a good deal of private obligation, bnt, on the whole, I think that everything appears to be getting on very well indeed." THE CREDIT OF THE COLONY. In answer to a question as to the feeling towards the colony in Uorae financial ciroleß, Mr Westgarth said:—" The general idea is that you are rather overwhelmed with obligations for borrowed money and that sort of thing, but along with that thero is aUo the feeling that you must como through it all right. Your securities, qb you are aware, me lower than those of any other colony of the Australasian group, and there is a good deal of distrust amongst the quiet old women, who prefer British consols to anything else. But there in a very good feeling indeed en the Stock Exchange. It has, of course, been considered that your colony brin°B out rather too many loans; but since you have undertaken not to raise another for three years, the attitude it now one of confidence." THOSE HARBOUR LOANS. Any repudiation on the part of the Harbour Boards who have borrowed on the London market would, in Mr Weßt- j garth's opinion, affect tho general credit of the colony very seriously, though, fro?» the result of his enquiries, he does not antioipate that any such difficulty will arise. , " The weak Harbour Boards have been provided with extra security. In the case of New Plymouth, which has totally failed as n harbour, the extra security must be adequate to cover th« whole loan. There is a difficulty at the moment, perbapv, in providing for the interest, but the money can be raisod by rating the local population, who are bound up in the bargain. Failure of Harbour Boards is much more.Bdrious than that of municipalities. The municipality has a Government of its own pro tan'o ; but the harbor indebtedness is a matter arranged by. the Government, you may Bay. The Government make arrangements which they consider adequate for tha security of the investors, and if the security breaks down, the investors naturally expeot that they will not be allowed to suffer from the mistake." IMPORTANT FINANCIAL SGHBMRS. One of the subjects of Mr Westgarth 's visit is to make proposals to tbe colonial Governments for the placing of their loans on a more satisfactory basis than at present exists, and he has submitted written proposals on tho subject to the Treasurer of each colony, as he has gone along. His main idea is one for the general consolidation of the loanß of all coloniep in 3 per cent, stocks, on the joint and Bevernl responsibilities of the different Governments, instead of varying rated on debentures now issued, but in default of such a complete arrangement as this he suggests that all the colonies should agree to issue only 3 per cent, loans, eaoh remaining separately onswerable for on!}' its own debt. The adoption of the latter idea would, he tliinkp, tend to make the publio at Home feel that complete union is not far off. Another advantage would be that th<i conversion of our outstanding debts to 3 per cents, would brine in an enormous profit if it were gono about in the moßt favorable way. Mr Westgarth has nlso mudo a sppmale proposal to Sir Harry Atkinson, that this colony should follow the exnmplo of Queensland in not allowing any municipal or harbor loons to he raised directly upon the mirket, but that it should make thop.o bodies negotiate Burh matters with tho Govern ment alone. The effect of that would, he consllerp, ho wonderfully advantageous to the credit oC the colony and reduco tho cost of Ihe loans. Aa regards tho reception of Ihb proposals by tho Auntralian Governments, ho thinks that the irritation ariaing from Protective tariffs presents ihe only periods obstaolo to their adoption. Mr Westgarth, it may be observed, is v. strong advocate of Freetrade, as, he says, has been every economist who has been worth his salt, from Adam Smith downwards,