8.-ll
1889. NEW ZEALAND.
AUSTRALASIAN 3-PER-CENT. CONSOLS STOCK (LETTERS FROM Mr. WILLIAM WESTGARTH RELATING TO A PROPOSAL BY HIM FOR INAUGURATING AN).
Laid on the Table by the Hon. Sir H. A. Atkinson, with the Leave of the House.
No. 1. Mr. W. Westgabth to the Hon. the Colonial Teeasubee. Deab Sib, — " Zealandia," s.s., Bth September, 1888 (one day from Auckland). I have the pleasure to enclose to you the copy of a paper I have just prepared for the Hon. Mr. Burns, the New South Wales Treasurer, and which I promised to draw up for him after an interesting discussion about changing the colonial issues from 3£ and 4 per cent, to 3-per-cents. My object was chiefly to show what might be the best way of effecting this important object. Mr. Burns I have asked to send copies of this document to the Treasurers respectively of Victoria, South Australia, Queensland, and Tasmania. I expect to arrive to-morrow at Auckland (Star Hotel), and within three days to be in Wellington, when I shall do myself the pleasure of calling upon you. I am, &c, To the Hon. the Treasurer of New Zealand. W. Westgabth. P.S.—Auckland, 10th September.—l hope to be in Wellington on Friday evening, via West Coast, at the Empire Hotel. I am sorry to have to leave on Monday for the South, in order to be at the Bluff for the steamer to Melbourne on Thursday week.
No. 2. Minute prepared by Mr. Westgaeth for the Hon. J. F. Bubns, Treasurer, New South Wales. Canada successfully inaugurated 3-per-cents for the colonies in the London market when she sold, last June, £4,000,000 of that stock by public tender at upwards of 95-J- per cent. As the minimum price had been fixed at 92 per cent., the result shows that the loan had been received by the public better even than the issuers had expected. That an Australasian Dominion 3-per-cent. would sell at the least as well as that of Canada may be inferred from the fact that, until within the last ten years, when federated Canada and the importance of her newly-opened Great Pacific Bailway had brought her more to the Empire's front, her loan-issues were lower in the London market than those of Australia. They were then as much lower, in fact, than those of New South Wales and Victoria as they are now higher. But, supposing that, as both Sir Henry Parkes and Mr. Burns surmised, the separate Protection system which most of the other colonies seem bent on instituting, each for itself, should delay or even thwart the intercolonial federation, we might, for the time, fall back upon the suggestion of Sir Thomas Mcllwraith that the colonies might federate as to loan-issues. Each colony, as Sir Thomas remarked to me, must surely feel as to the others that, however much or little they may borrow, they will all punctually and fully meet their engagements. This partial course would not have the full effect of a political confederation in raising the value of their stocks ; but if the loans were issued under some form of common authority there would certainly be a substantial approach to such value, especially as there would be also an impression that the full and final step could not be far off. But, again, supposing that even this could not be early arranged, let us consider what might be the best course if still obliged to continue separate and independent action. I have repeatedly explained that, in loan-issues, simplicity of form, and uniformity, should always be aimed at. Investors' memories should net be charged with more details and differences than possible; and consolidation and uniformity should be the rule, for the sake of the greater negotiability which one large stock has over many different and small stocks.