The Taranaki Herald. DAILY EVENING MONDAY, JUNE 7, 1920. A TWO MILLIONS LOAN.

Taranaki Herald, Volume LXVIII, Issue 16758, 7 June 1920, Page 2

The Taranaki Herald. DAILY EVENING MONDAY, JUNE 7, 1920. A TWO MILLIONS LOAN.

If there is anything surprising about the Premier’s announce-

ment that the Government will shortly invite subscriptions to a new loan of two millions it is the fact that the amount is so modest, but\Mr. Massey explained that a further and larger loan would be issued later on. The two millions are required for public works purposes and the loan is to be issued at par, with a currency of ten years, and will hear interest at the rate of five per'cent. The smallness of the amount may perhaps be due to a feeling’ on the part of Mr. Massey that investors may not take kindly to the terms, for the interest is not to he free of income tax as has been the case with recent domestic loans. In other "words, Mr. Massey may desire to test the market with a small loan before risking- failure with a large one. It is really a somewhat hold experiment. 'The New South Wales Government a month ago offered a loan of two millions at 5-J- per cent, free of both Federal and State income tax, with a currency of five years, and after four weeks a total of .£1,160,000 had been subscribed, little more than half'what was required. In England great corporations like the City of Liverpool and the City of Bristol have recently borrowed at six percent., and it has been predicted by an Australian bank manager in London that Victoria will have to- pay 6-t per cent for a conversion loan of six millions in September. It certainly seems therefore that Mr. Massey will he fortunate if he can induce New Zealand investors to. lend the State money at five percent. subject to income taxi There is plenty of money in the country and the object of the loan is a good one. The quarterly banking returns disclose large sums of money lying in the banks awaiting investment and it should not be difficult to secure two millions of this without compulsion, which Mr. Massey apparently does not intend to- apply. He appeals rather to the patriotism of the people, saying that the loan is intended for the purpose of encouraging national thrift and of encouraging New Zealand people to use their funds for- the development of their own country. Money, however, has little patriotism ; it goes whore it can secure tho best return. Since, however, it is quite out of the question to go abroad for money—rates are too high in England and American financiers recently asked an even higher rate for a loan to Australia —the Government must look to local sources for its requirements, though in doing so it will enter into competition with local bodies and private borrowers who want money to carry on established industries aud develop new ones. Local bodies’ requirements in the next year or two will be very heavy. An immense amount of building is in hand or contemplated, to pay for which money has to he found. There is every prospect too that imports into the Dominion will approximate much more closely in value with exports than lias been the case during recent years, which means that there will he a smallersurplus for local investment each year. In a word the position is that in future there is not likely to he the same accumulation of capital that has taken place in recent years. The demand for money, on the other hand, will be exceptionally heavy aud wo cannot look to outside sources for much of it. The thrift, therefore, which Mr. Massoy desires to encourage is very desirable and it would be pleasing to see a largo proportion of tho two millions subscribed by small investors.

The settlement of returned soldiers on the land has proved a more expensive process than seemed probable.

chiefly because much of the land purchased has been highly improved. If, as is reported, 4000 men are still anxious to secure land, another eight or ten millions will bo required and it is difficult to see how so large a sum can be borrowed without, producing an increase in the inflation which is one of the chief causes of the high cost of living. The Returned Soldiers’ Association recommends that largo estates should bo acquired and cut up for settlement, but most of the largo estates consist of poor land and would have to ho divided into large blocks, so that the actual cost per settler would not bo any less than that of the smaller areas of good land already bought. Moreover, , sheep fanning is not likely_ to prove a very profitable means of making a living, except for men who already have experience. On the othpr hand there are large areas of Orotfri land which, with comparatively small expenditure on roads, could be made available for settlement, and on these men with little knowledge of fanning could do well, as they would gain experience while getting down the bush. It is absolutely essential, however, that men should not bo put back in country served bv a four-foot track impassable for half the year. The land offered to soldiers must be properly roaded so that they and their wives will not be cut off from civilisation ns so many of the old settlers have been. Given roads bush sections offer far better prospects than open land bought at present prices. From the point of view of the State the advantage is equally great, for the land lias? not to bo bought and the money advanced to assist the new settlers will be spread over a term of years instead of having to be put down at once to buy land. It is worth noting that in Australia the Minister of Finance regarded 70 millions as an absolutely impossible sum to spend on soldiers’ settlements. In this Dominion, with ono-fifth of the population of Australia, we have already spent more than one-fifth of 70 millions, so that we are far in advance of Australia.

Mr. Massey, in a, review of fhe coal position in the Dominion published in our last issue, warned the public that it is impossible at the present time to increase /the Allocation of coal for household purposes without seriously interfering with the operations of important industrial concerns ana fiie public services on which the prosperity and progress of the Dominion largely depend. The shortigo of coal, Ho says, is universal througuout the Dominion and not confined to any particular locality. Tho figures accompanying Mr. Massey’s review indicate that the situation has only boon saved during tho last few months by very heavy importations* of coal from Newcastle, and that if the Dominion had to rely on its own sources many industrial concerns and public services would have to be suspended. Yet in the face of so serious a position the miners at one of tho Waikato mines tho other day refused to go to work because they were kept Waiting for half an hour on account of the train by which they usually travel being late. At other mines lately time has boon lost because of an alleged shortage of trucks, the miners declining to work a short day. Mr. Massoy stated that the “gc-slow” policy has been abandoned in the West Coast mines and that the output has consequently improved. Recent returns, "however, seem to show a diminished output at the principal mines, duo peril aps to a smaller number of men being engaged rather than to a decline in individual output. But if the “goslow” policy has been abandoned on tfte West Coast it is still in force in the Waikato, though- perhaps in a different form. The men may not be limiting their daily output but when uley decline to go to work for so trivial an excuse that their train is half an liour late they are applying the “darg” principle just as surely. At a time when the whole country is _ suffering from coal shortage, thus adding materially to tho cost of living and interfering with the earning of wages, the miners ought to make a little extra effort instead of seizing every excuse to have a day off.

A private telegram received in Eltliam, says the Argus, states that at the Wellingon hide sale on Friday there was a drop in the market of fully 5d in the lb.

The Magistrate’s Court sat this morning to deal with civil business, Mr. T. A. B. Bailey, S.M., presiding". Adjournments wore made in all the eases which came forward. A five-romed house with over an acre of ground was purchased recently in Greytown for £320. Another fiveroomed house in the same town brought £SOO, and the same price was paid for a seven-roomed house with three-quar-ters of an acre of land. “I did not notice any anti-British feeling in - California,” states Mr. P. F. Haggitt, of Tedding, who has returned from a trip to the United States. “The chief complaint of the Americans seemed to bo that they received very little assistance from tlip Allies in winning the war!”—Manawptu Standard.

It is reported that the price asked for four new tramcars which the Napier City Council invited tenders for is £20,000, being an increase of roughly over 400 per cent. The cars at present in use in Napier cost under £I4OO (Cach. Under those conditions it will be impossible for the council to go on with tho Hastings Street South extension unless a further authority to borrow is given by the ratepayers.

There was a remarkable disclosure of the unreliable behaviour of some water meters in a report presented to tho Auckland City Council. Tho Mount Eden Borough Council requested an "adjustment of tho charges made for water as measured by meters. A tost showed that one meter was registering 2620 gallons for every 1000 consumed, and the other 2552 for every 1000 gallons. Authority was asked to make the adjustment, which represented £1283 Is. The adjustment was authorised.

Re the high cost of living, at least two Gisborne residents have reduced the cost of footwear 50 per cent., and quite bv accident. The Poverty Bay Herald reports that one gentleman, who sonic time ago in an accident lost his left leg, was in a boot shop one day last week, with the intention of buying a “pair” of boots for his right foot, when another man who was afflicted" in a like manner, hut on the other “foot,” was passing by. The idea, flashed through tho mind of ono of them that perhaps the. same sized boots might fit both parties. Tlicv then and there each tried on a “right” and a “left” boot, and they both fitted perfectly. A pair only instead of a "pair each was then purchased, and both are delighted with their good fortune in so meeting.

Sateen and moirotte underskirts, nice new goods, hare just opened out at Tho Melbourne, Ltd. Prices are from 7s lid to 29s fid. Oilier now linos in stock are ladies fleecy bloomers, yellow label Llama hose, and radianta blouses.* Children like 'VPade , s Worm ingsj sure and certain. Price Is fid, X.

The Moa Road Board, at a meeting on Saturday, decided to support the movement favouring the holding of the universal half-holiday on Saturday.

The price of household coal in Auckland has boon increased by two shillings a ton as from Juno 1. This increase is duo largely to the fact that the demand has been in excess of supplies. A very large shipment of oranges, 20,000 cases, arrived in Auckland this week. It was the largest since 1908, in which year 25,000 cases were landed on one occasion.

The heavy rain has caused landslides on the Main Trunk railway, particularly between Te Awamutu and Otorohanga. The express trains to-day lid not run beyond Frankton and Te Aiyamutu. There are also slips orrthe Rotorua and Thames lines.—Press Association.

It is reported, apparently on good authority, that an Asnurst farmer, who came to New Zealand two years ago, received a legacy of 100 £IOO shares in the P. and 0. Shipping Company from his people in England, and that, tempted by the rise in value, he has sold them at £SOO per share. The Stock Exchange quotations are £5lO.

At Saturday’s meeting of the Moa Road Board the Under-Secretary of Internal Affairs notified the appointment of Mr. F. A. Lloyd, county olex’k, as returning officer, who will prepare the electoral roll in connection with the first Inglewood County election. The date of holding tho election was fixed for July 7. The May number of The Taranakian, the journal of the New Plymouth Boys’ High School, is now being circulated. Its contents are quite in keeping with the high standard attained in previous numbers and, as usual, a very complete and interesting record •of the school life in all its branches is provided. A well-written editorial welcomes the issuing by the Department of Education of a more comprehensive syllabus in elementary civics and tho making of this subject compulsory for the intermediate examinations. Among the items of news is found the information that the roll number is now 390, including 19i boarders. A considerable proportion of space is devoted to news of old boys and their association and sports organisations. The magazine is becoming a link not only between the school and old boys, but also between individuals of the scattered band of old boys.