N.Z. LOAN.

Auckland Star, Volume LXX, Issue 151, 29 June 1939, Page 11

N.Z. LOAN.

DEADLOCK REACHED?

Mr. Nash Trying To Raise Sum

Of £33,000,000.

LONDON PRESS COMMENT.

United Press Association.—Copyright.

LONDON, June 28,

The City editor of the "Daily Express" says it is understood that a deadlock has been reached between the New Zealand Minister of Financfe, Mr. Nash, and the Governor of the Bank of England, Mr. Montagu Norman, in regard to New Zealand finances. The writer says: "Mr. Nash wants to raise £33,000,000, which is a lot of money for a country with a population of 1,020,000. "Mr. Norman and City heads, who do not usually sponsor New Zealand loans, point out that it is impossible to raise such an amount in the normal way in view of New Zealand's depleted sterling resources, the current low prices for wool and dairy produce, and the increased scale of New Zealand social services." The "Manchester Guardian" City editor, commenting on the fact that Mr. Nash has still not completed his negotiations, considers New Zealand loan requirements cannot be dealt with as a mere matter of market haggling. The defence loan concerns high policy, while conversion can only be tackled, when the New Zealand and British Governments come to an understanding about export trade to Britain, on which New Zealand is able to rely. The writer says that perhaps special trade credit arrangements, such as have been abundantly granted ,to foreign countries, combined with a long-term loan operation, may be necessary.