COLONIAL LOANS.

Wairarapa Daily Times, Volume XXVII, Issue 7403, 6 March 1903, Page 2

COLONIAL LOANS.

A CAiii.H to tho Queensland Premier intimates that rumours concerning tho depressed Htato of tho London market caused tho failuro of the. Now Zealand dotation. In other words, it is London, and not New Zealand, which is short of money. Tho position fruniuds us, somewhat,"of a friend of our own, who, many years ago, was called into a bank parlour, and requested in the politest tonus imiiginahle, to reduce his overdraft. " What!" said our friend, "Is the bank hard up?" lie could not imagine that his own credit could he anything else hut gilt'cdged ; ami came to tho conclusion that tho bank was in difficulties. ludoed, ho felt sorry for tho bank. A somewhat similar sentiment .scorns to

pervade the Colonies —the over-borrow-ing Colonies, at tho presont time. They , mildly hint that liondou is played out as , a financial centro, aud that if tho : British Lion is not more considerate, ; they will desert him altogether. They begin to feel sorry for the British Lion — j a noble animal who may have to endure ; tho loss of their custom ; that is, if they decide to take their business to Paris, Berlin, or Now York. Tho crimson ', thread of kinship—tho tio that hinds the ; Empire together, is all very well as long j as tho old Lady of Throadneedlo-steeet smiles upon us; hut, when onco she frowns, all conditions of national sentiment aro suspended. Tho fall in colonial securities is almost ii friendly blow to New Zealand, whatever it may be to its rulers, who have been accustomed to a " Rake's progress." Money borrowed within the Colony at i per cent, and carefully expended is more profitable than money borrowed at ;.S per cent, in London aud squandered.

In the one case interest remains in this Colony; in the other it goes out of it. Wliat is bad for New Zealand is tho enormous waste of borrowed money upon unproductive public works, upon unproductive co-operative labourers, and upon thousands of unproductive people, for whom billets have to he found by a gonerous Government, at the cost of a confiding people.