N.Z. FINANCE.

Wanganui Chronicle, Issue 12856, 23 October 1912, Page 8

N.Z. FINANCE.

MINISTER TO VISIT LONDO-V

SOME INTERESTING FIGURES

INQUIRIES ABOUT DEFENCE AIN'D

EDUCATION

(By Telegraph.) (From Our Ovvn Correspondent.)

WELLINGTON,

October 22

The Hon. Mr. James Allen will at the request of the Government pay a visit to London early in the year in connection with Dominion finance. Tho announcement will be received with very general satisfaction throughout New Zealand. Though tho country is itself very prosperous, and prices for our nuiin products are satisfactory, tho question of our public finance is such as to call for some attention with a view to putting it upon a thoroughly sound basis. Whilo Mr. A.llen Ls in London he will have to deal not only with the new loan of £1,750,000 for public works, but also with tlie renewal of loans falling due and tho raising of other loans for the Stato Guaranteed Advances, State Coal Mines, etc. In addition to the £1,750,----000 for works there is a balance of £74,----000 of last year's public works loan still unraised, and £100,000 is wanted for tha State coal mines. There will also be an indefinite .".mount in connection with renewals of loans falling due, and an amount for land for settlements, and advance?, to settlers and workers. Mr. Allen will also avail himself of tho opportunity afforded by hi:s visit to learn something of tho probable financial position next year, when n largo amount of loan money (including the £4.500,000 borrowed by tho Mackenzie Government early this year), is falling due. The following table shows tho loans falling duo within the next three years:— Year, 1912-13, London, £30.300; Australia, £155,000; New Zealand, £3,113,----366; Total, £3,298,666. 1913-14, London. £1.280,400; Australia, £166,700; New Zealand, 330,600; Total, £1,777,700.

1914-15, London, £8,048,200; Australia. £452.100; New Zealand, £1,330,----56 5; Total. £9.830,865. Totals, London, £9.3-58,900; Austra- !••».. £773.800: New Zealand, £4,774----531;( Totals, £14,907,231. Of tho eight millions odd falling due in London in 1914-15, £3,142,600 is of tho £0.000,000 loan not yet converted but subject to further conversion. Of tho New Zealand amounts the larsrer proportion is moneys borrowed from the Post Office, and will 710 doubt be renewed. It is not certain that other iNew Zealand amounts or Australian amounts will bo renewed, and it is quite likely -New Zealand will have to raise money in London to pay off these. It is also Mr. Allen's intention to see whether New Zealand can arrange some. tlimg with a- view of getting rid of the short-dated debenture system. This matter was referred to in tho Budget in which the Minister of Finance stated that the consolidation of our shortdated debentures had given him grave, concern. Ho added that during the next seven years a very large portion of our public debt would reouire either to bo renewed or bo paid off by fresh loans, and that arrangements would need to be made accordingly. The Budget went on to cay: "The^Government floes not approve of the issue of shortdated debentures for this country's loans, and is of opinion tint a comprehensive scheme for converting them into stock in very necessary. At present thero are three kinds of stock—4 per cent., maturing in 1929, 3£ per cent maturing in 1940; 3 per cent., maturing in 1945. The Government proposes to provide for the short-dated debentureci soon to become due by creatino- a further issue of stock at 3j r>er e«nfc maturing in not less than fcwciitv Tears' time." ' *

. Tho Cabinet has come to'the conclusion that it is very neeesasry the country should not have the short-dated debenture system hnngine over its bead any longer than is absolutely necessary, and it is desirous of making provision for longer loans. The Government wish to get rid of the hand-to-mouth system, and to put our public financo upon a moro secure basis.

; IMPERIAL DEFENCE,

When Mr. Allen is in England, he hopes to learn something regarding th« ideas of tho Committee of Imperial De^ fence, especially in connection with the \e\v Zealand and Pacific trade routes lhis, of course, relates to tho question (»i naval defence. In so far as land defence is concerned, our ideas have now fully matured. Our policy in regard to naval defence is still being considered by the Government. Mr. Allen i--also anxious to hear what the Defence Committee has to say abou£ our harbour defences, in regard to fixed armaments, and especially in regard to torpedoes and submarines as a means of defence.' It is quit© obvious that any fleet operating here must havo tho means at hand of repairing in a safe harboiu-, and therefore at least one of our harbours must be made a naval base.

EDUCATION

Mr. Allen, as everyone knows, has for many years taken a very keen interest in education, and, in addition to his control of finance and defence, ho is also in charge of this important Department. If time permits, he wi,!l, during1 his visit, devoto some study to educational system?; in tho Old World. He is very anxious to sco something of tbe technical school work in Great' Britain, franco and Germany. If time permits, no will also endeavour to get an insight ?.t ,first hand into the Swedish system of physical training. The system in beniK taken up in two or three place; in Engbnd. and New Zealand Is reorganism? in this direction in the primary schols, in which the whole system ir; to ])o ehrmged. Altogether it would ?;oem as if Xew Zealand iV, likely to benefit to a very considerable degree through the determination of the Chbinet to ask Mr Alien to pay a visit to the Old World at the- present juncture.