The Rambler.

Thames Star, Volume XXVI, Issue 8064, 8 June 1895, Page 4

The Rambler.

[By "Free Lance."]

I wonder if the sequel of the WildeTaylor trial will be the arrest of Lord Alfred Douglas and the other gilded youths who were connected with these men in their misdeeds. It would be a gross miscarriage of justice to allow Lord Alfred to escape owing to his " social" position. At the close of the trial His Honor denied that the son of the Marquis of Queensberry was being allowed to go free owing to his connections, and described the jury's suspicions to that effect as " unfounded and impossible." We shall see.

The phenomenal success which has attended our Colonial Treasurer's visit Home must be a very bitter pill for the Opposition Press. When the trip was was announced the croakers lost not a single opportunity of denouncing the whole proceeding, and Mr Ward left the colony admidst an avalanche of mis-representation and predictions of failure. But how has his mission resulted ? He has successfully manipulated the loan, he has introduced an excellent conversion- scheme, he has pushed to the fore the Pacific cable and team services, and, in the words of a leading financier, " he has assisted New Zealand to regain a position of firstclass credit on the London money market." Those croakers are silent now.

As an example of the great saving that will result from Mr Ward's financial proposals, let us first consider the effect of the proposed three per cent, conversion scheme. The object of conversion is simply to reduce the rate of interest —that is, to benefit the borrower. Some inducement must, of course, be offered to the holders of bonds to secure their consent to such a reduction, and for this purpose a compromise must be arranged. The usual method is to give an extended currency at a premium to the holder of the richer security to induce him to exchange ; that is to say, the borrower agrees to increase the amount of his debt on the condition that the total of his annual interest is diminished. In the words of the New Zealand Times, "if the total of the annual savings for the extended period of currency is greater than the increased principal repayable at the end of the term, then the conversion operation gives the borrower an advantage, and his conversion operation is a success. In other words, the premium he will pay his lender will be less at the end of his term than he has saved by diminishing the pressure of his annual interest. The degree of success in all such conversion operations is measured by the difference between the increase of principal and the sum of saved interest." With this object in view, Mr Ward proposes t© convert all New Zealand stocks into three per cents, as near par as possible. It is needless to say that if the scheme is successful, and the condition of the market fully warrants it, the benefit that will accrue to the colony cannot ba over-estimated.

And then, again, there is the loan. The wonderful success of the 3 per cent, departure will be a landmark in colonial finance. The new price definitely established by this loan will be the precedent for all the colonies to follow—a precedent which they will eagerly avail themselves of. In future Australia will expect money from the British investor at three per cent., where Queensland and Western Australia obtained it at 3^ per cent., and the investor will pe'rforee comply. Nor has the Australian Press been backward in its tributes to the man whose boldness and skilful financing have brought this happy state of affairs about.

Further : The result of the loan has placed the success of the Advances to Settlers scheme beyond doubt. Putting the total price paid for the money at S-Jr.-per cent., there remains the ample margin of If per cent, for expenses, etc, which thus renders the operation absolutely safe. And it was this cheap money scheme, designed to relieve the struggling settler of the extortionate rates of interest imposed by the money-lender, that came in for most condemnation from those who considered the Government's policy reckless. Mr Ward has brilliantly vindicated his own financing-, and he has earned the thanks of all the Australasian colonies,