NATIONAL DEBT.

Auckland Star, Volume LXIII, Issue 178, 29 July 1932, Page 3

NATIONAL DEBT.

! CONVERSION PROPOSAL LOWER RATE OF INTEREST. SUPPORT IN AUCKLAND. The suggestion advanced yesterday by Dr. 11. Bclshaw, professor of economics at Auckland University, that consideration should be given the question of converting all of New Zealand's indebtedness to a lower rate of interest is favourably commented upon in the city. One opinion expressed to-day was that tho launching of such a project would considerably expedite general recovery. "I have long held the view that a conversion of the internally-held debt should have been undertaken as an alternative to the interest reduction and stamp duty measures," said Mr. A. M. Seaman, president of the Auckland Chamber of Commerce. "The National Expenditure Commission was rather favourable towards this principle, and elaborated the idea in its report to the Government. I believethat if it were practicable to undertake such a scheme it would be desirable to convert the National Debt, whether held internally or externally, to a lower of interest. When the report of the* commission was published I expressed the opinion that the most desirable method of effecting a reduction in interest on locally-held debt would be by the conversion method. The other method proposed was apparently adopted because it was likely to give immediate benefits. However, the commission gave a clear indication that the conversion idea should not be lost sight of." "To Facilitate Recovery." Mr. S. Taklc, president of the Auckland Manufacturers' Association, said that in his opinion a general conversion of internal debt and debt held overseas was necessary to facilitate recovery. If such a plan we.'j not fostered one must expect recovery to be retarded. Conversion to a lower rate of interest would save tho creation of Budget deficits, and doubtless would avoid the imposition of further taxation. It would create a healthier tone generally. "Judging by the experience in England," Mr. Takle added, "I think that if the idea were properly put forward there would be a Igood response from the public, who would i realise that it would mean an ultimate benefit to them, although immediate sacrifices were involved." In the opinion of Mr. W. J. Holdsworth, chairman of the Auckland Power Board, a successful conversion arrangement offered the only way whereby the Government could obtain easement and a fresh start. A scheme for the conversion of the National Debt, and if pracI ticablo the local body indebtedness as I well, to a lower interest rate would have a marked influence on recovery. "Changing Ideas." The head of a large departmental store said the proposal made by Dr. Belshaw was worthy of the most careful consideration. He assumed that if conversion were undertaken locally the necessity for the imposition of the special stamp duty would cease to exist as far as interest received from Government securities was concerned. "Everybody would welcome a general conversion movement," said another business man. "Changing times have brought changing ideas, and our estimations of values have to be adjusted to the altered conditions. I think it would be both practicable and desirable to make arrangements fo- a conversion appeal."