Wholesale Borrowing.

Wairarapa Standard, Volume XIX, Issue 1834, 19 May 1886, Page 2

Wholesale Borrowing.

In “ The Speech from the Throne” very little is said about borrowing, but when Sir Julius Vogel lately addressed the Wellington people, he was eloquent on that topic. He remarked; —“ The Government adhered to the policy of borrowing on railways and lessening expenditure of borrowed money on other purposes* Great misconception existed on the subject of private borrowing. The whole system of colonisation of the Australasian colonies had depended on obtaining from Great Britain its surplus capital and surplus population. Private borrowing meant an introduction of capital, not at the risk of the community, but of the borrowers themselves. The Chairman of the Bank of Australasia bad stated that he estimated three hundred millions had been lent iu these colonies on mortgages. Far from it being the case that New Zealand had a large share of it, she had much less than one-tenth, for it was shown that the mortgages of the colony amounted to thirty millions, of which a large amount was made from private capital within the polony.” It may he gajhered from all this that Sir Julius Vogel wants the colony to borrow all it can get from English capitalists, and have a good time of it, careless ot whether or not the principal and interest can be repaid to the lenders. But careful prudent colonists look at the matter in another way. They dread reckless borrowing, simply because to pay interest on additional loans means additional taxation of a crushing character, heavier Customs Duties and a consequent increase iu the cost of borrowing, which would press with great severity on the great bulk of the people. Moderate borrowing and careful expenditure on reproductive works are advisable, but Vogel’s wholesale scheme would simply lead to ruin.