DOMINION FINANCE

Waikato Argus, Volume XXXIV, Issue 5325, 4 June 1913, Page 5

DOMINION FINANCE

THE THREE MILLION LOAN. FINANCE MINISTER EXLPAINS POSITION. ABOUT £1,250,000 FOR PUBLIC WORKS. CURRENCY OF FIFTY YEARS. By Telegraph.—Press Association. Auckland, Last Night. Discussing the result of his financial operations on behalf of the New Zealand Government while at Home, with a Star representative this morning, the Hon. Jas. Allen (Minister of Finance) remarked: —“The three million loan is raised. It was raised at a very had time, and I have no hesitation in saying that nobody and no country could have done better at that moment. The money market was not in a particularly disturbed state, as seems to have been reported, but there was at the time a tremendous demand for money all over the world. The Balkan trouble had undoubtedly an effect on the market, hut not to the extent that people believe. The £3,000,000 loan was raised for 4 per cent at 98, with a currency of 30 years, and of 50 if we want it. The whole loan can therefore be redeemed by payment of £4 5s 6d a year in 50 years. “The amount available for public works is, 1 believe, £1,750,000?” queried the pressman, to which the Minister replied: ‘ Oh, no; I think

it is about £1,250,000. But more money lias been raised since the £3,000,000 loan however, and at a beltter rate.” OTHER LOAN PROPOSALS. “I have come back with definite proposals also to meet the two large loans which fall due next year. I refer to the 44 million loan raised last year and to the other loan maturing next year of about 3J milions. Both of these loans are 31 per cent, loans. Those are the only two loans which we need worry about. All the others coming due within the next two years are 4 per cent, loans, and 1 am not troubling about them at all. 1 will admit, however, that the two bigger ones I have mentioned may give us some little concern, but that concern will disappear if New Zealand lives within its means and does not become extravagant in fact, keeps ud its reputation on the London money market. New Zealand, ’ emphasised Mr Allen, “must keep its name and reputation high with the London market. Let it do so, and our future financial negotiations need cause no concern to us. The outlook generally is now very good indeed, and 1 think the change of Government has made it brighter than ever it was.” HASTEN SLOWLY. Speaking on the subject of money available for public works, Mr Allen declared that there would be a sub stantial amount of money for public works this year. “I think,” he asid, “there is quite sufficient to carry on our public works at as rapid a rate as that at which we are justified in carrying them. But if you ask if there is plenty of money for public works, I must reply that there is not plenty to play with.”