The Gisborne Times. PUBLISHED EVERY MORNING. MONDAY, DECEMBER 30, 1912.

Gisborne Times, Volume XXXIII, Issue 3716, 30 December 1912, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. MONDAY, DECEMBER 30, 1912.

.1 here are now happily indications that Hon. James

Will Mr Allen be Successful ? m An n 4* 1-1 /a i-',.

iaiki u tiamtrb Allen should bo able to make satisfactory arrange-

meats at Home for the flotation of the projected public works loan and for the renewal of other loans which will shortly fall due. As is well-known the .prospects! of late in regard to the money market have not, to put matters accurately, been over-encourag-ing. Fresh loans can, of course, usually lie obtained—even in the vgrv ‘■tight’’ times—by a country which has such good security to offer as is the case with reference to New Zealand, hut- the terms may be anything but pleasing. Unfortunately Home investors have, for the past two or three years, not been very partial to Colonial loan undertakings. What has also to the belief that Mr Allen .would have a difficult task before him has naturally been the ad-I ditional circumstance that for some

time back money lias not been at all. plentiful. But—as we have just remarked —the position, "it would seem, is now a good deal more encouraging, or, should he so ’far as New Zealand, at any rate, is concerned, by the time Mr Allen reaches the Home Country. In this connection it may have, been noticed that New South Wales, in particular, has been having much difficulty in raising fresh loans at reasonable rates of late. The fact that three millions of money were recently required, and only one and a-half millions raised, is now, however, explained as having been due simply to a misunderstanding. According to the Minister for 'Finance for that State a <gfble in August definitely made the ptiiree million' offer. His Government was later amazed to get a cable announcing that a million and a-ba!f only had been floated and that it must he regarded as an absolutely complete transaction. It is further explained that it will probably come to light that there has been friction between the Agent-General and the underwriters As regards the lean which has since been rasied by the Mother State the fact that such a large percentage was left on the hands of the underwriters was, it is clear, net due to the circumstance that a great deal of money is not available at the present time. Just before the date when applications closed, the “Sydney Morning Herald'’ for instance, had official authority for stating that New South Wales had been offered quite £20,000,000 of loan moneys on various terms and conditions. In one ease a loan of £10,000.000 was offered. But there was an unusual stipulation. If the money were advanced the State would have to place certain contracts in England. When the proposal came before Cabinet, however, it promptly decided not to accept it. So far as .New South M ales is concerned it would seem to be acknowledged on every hand that what has been making Home investors so shy has been the Socialistic character of much of the legislation that lias recently been passed. With reference to .Mr Allen’s mission it is, therefore, reasonable to suppose that if there were twenty millions available for New South Wales early in December there should be even an easier market when he reaches the Homeland late next month. It will also be all in his favor that New Zealand, unlike the Mother State, is not being run by a Government which, as the “Sydney Morning Herald” says, “has already expended an enormous amount on undertakings that merely represent the millennial ideas of Labor and so far the expenditure has certainly not justified itself!’’ We are sure that our readers generally will sincerely trust that Mr Allen’s journey to the Homeland may prove, as we believe it will do, quite successful so far as this and the other important matters upon which lie Till be engaged are concerned.