AFTER THE "BOUNCE."

Auckland Star, Volume LXVII, Issue 156, 3 July 1936, Page 6

AFTER THE "BOUNCE."

There is some ambiguity in Mr. Savage's two statements about New Zealand's overseas indebtedness, but the general purport of them should be clear. After expressing his views on the question of fixed interest rates arid fluctuating money values, the Prime Minister was asked whether the Minister of Finance would open negotiations in England this year. Mr. Savage replied: "Mr. Nash will bounce the ball when he gets Home." That, undoubtedly, means no more than that Mr. Nash will open negotiations on his arrival in England, and that he will strongly represent to the bondholders the views of the New Zealand Government. Unfortunately the phrase "bounce the ball" seems to have been interpreted in London as expressing an intention to "bounce" the bondholders, and the whole statement (or such parts of it as were cabled to London) as containing an implied threat by the Government to default. Such an interpretation was as hasty as it is certainly wrong. It should be corrected by a plain and full statement through the High Commissioner in London. The Government, and New Zealand as a whole, have good reason to desire that when the Minister of Finance reaches London he should not find the atmosphere clouded by prejudice.