BUOYANCY OF FINANCE

Wanganui Chronicle, Volume LXXXI, Issue 18974, 27 March 1924, Page 4

BUOYANCY OF FINANCE

GOOD BUDGET ASSURED. OVER A MILLION SURPLUS. BRAKE ON EXPENDITURE. PRODUCTION AND THRIFT “The Dominion’s financial outlook is quite bright,” declared Mr Massey, as Alinister for Finance, in Auckland on Monday, in reply to a question as to the prospects regarding the approaching close of the current financial year. “A good Budget is assured, and if the country maintains its nrcHent_mcasnre of production, and avoids anything in the nature of a boom, there is not the slightest cause for apprehension.” This was only one of many statements revealing that the clouds of pessimism have passed away. “I am glad to say,” the Prime Minister continued, “that our financial year will close, at the end of this month, with a balance on the right side of the ledger. Indeed, I think the surplus will even be a little better than it was last year (approximately £1.316,000). The expenditure has l*>en held in check, and the total for the year will be well within the estimate. If the country as a whole keeps steadily at work, increasing, if possible, its high output of products, there will be no fear at all of the Dominion's prosperity-

“In some respects it has been a difficult year, but we have come through it all right. A great deal has been done in the direction of casing the pressure on general interests, but much more requires to be done. For that reason i< is necessary to take careful stock o! our resources and responsibilities, an. to shape the development of the country according to its financial strengt’ LENDING AND BORROWING “As Minister for Finance I have t# be glided by the amount of capital available for advances to settlers and workers and also for the numerous activities and enterprises of the State. I am not going to raise a loan until conditions in the money market are easier. The Government cannot borrow money at 5} or 6 per cent and lend it at 4}, or even 5J per cent, without incurring considerable loss. That must be avoided, and I am going to avoid it. “The country is not embarrassed in respect of loan money and the right time to raise another loan will be taken. It may be three or four months yet before the issue is made. I have said that tho Dominion’s credit is good. It is good. The Budget will disclose the position in detail. Money has been raised by Treasury bills with a currency of from 3 to 12 months on exceptionally good terms. The particulars will be given in the Financial Statement, and these, I think, will be found quite satisfactory. That sort of thing, of course, can be overdone, but the Government is not overdoing it. Caution is being exercised, but no opportunities are being missed. So long as we can maintain the present volume of exports, amounting to nearly £50,000,000 for this year, compared with £23,000,000 ten years ago, I have no fears for the future. But it is essential to exercise care, and I have yet to learn that such a practice is pessimism THE MORATORIUM. . “There is no need for anxiety about the expiry of the moratorium legislation on December 31 of this year. Some very good work has been done during tho past six months as regards renewals of mortgages and future arrangements, and I see no prospect of serious trouble. A great deal has been accomplished under the system of advances to settlers and workers. The advances authorised under both heads during the last 11} months total 9093, representing an aggregate value of over £8,000,000. By the end of this month the loans issued will total £6,000,000. Arrangements have been made for the erection of between two and three thousand dweUings.' As far as tho workers’ homes are concerned, nearly the whole of the advances have been made on the basis of 95 per cent, of the value. Thirtytwo loans have been granted to local bodies at a total value of £105,460. It is a fairly good record. But it is necessary now to slacken down.”

Referring to tho Slate’s new shares in the Bank of New Zealand, Mr Massey mentioned that he believed that its holding would realise £2,500,000 in Lon don to-day. It was a particularly good investment.—N.Z. Herald. ’ •