EX-MINISTER STATES FACTS.

Press, Volume LXV, Issue 19691, 7 August 1929, Page 10

EX-MINISTER STATES FACTS.

A SPIRITED REJOINDER. (PBE3B ASSOCIATION ) WELLINGTON, Augnst «. The Hon. Mr Downie Stewart, Minister for Finance in the late Government, commented on Sir Joseph Ward's statement when hi made the opening speeeh

in the Financial Debate in the House this evening. Mr Downie Stewart said he wished to comment on the statement by the Prime Minister as to the London lean transactions. Mr Downie Stewart said: "It was an extraordinary statement. It was a contradictory statement. It was an unfair statement. .It was a statement long overdue, for the Prime Minister has for weeks allowed the serious accusation made by himself to stand against me. He has refused me . y redress; he has declined to lay the papers on the table; he has allowed his colleagues to attack me again 'and again. Not only so, but whenever the matte- hap cropped up, he has repeated his charge in more and more aggravated language, and has stated that when be did disclose the position I would not have a leg to stand on. "And what has all the mystery and insinuation been about? It all turned on the simple question whether he should accept the advice of his London agents and borrow three months sooner than usual in case interest rates should go up. He decided to accept their advice, and the fact that this meant borrowing twice in one financial year is a mere aecident. "Now, in this statement, he oegins by saying that I left over a decision for two months, despite the xact that the Treasury were pressing for a decision. That is incorrect. The Treasury and Cabinet agreed with me that it would be most improper and unfair for me to settle the question, as my successor might refuse to accept the London advice, and would reasonably complain if I tied his hands. Now, on this aspect of the question I will convict him out of his own mouth, for in 1912 he himself in simitar circumstances acted exactly as I have done, and justified himself on the same ground." Mr Downie Stewart read a paragraph from Hansard to support this statement and continued:'— ' "He now says he cannot borrow for eighteen months. Well, why cannot hef Because he has already borrowed before the financial year began. But why did he borrow! Because he thought hig London advisers were right. But he did not need to follow this advice. He could have ignored their advice and borrowed at the usual time. "I have already stated that in middle of the election the Treasury advised me in Dunedin that our London advisers were apprehensive as to the future of the money market, and suggested that we should borrow in anticipation of this year's requirements, and convert a further portion of the 1929 loan. I wired to the Treasury instructing them to ascertain from London how soon the decision must be made, as on such an important question I would naturally wish to consult Cabinet, if possible, after the election. The reply was that a decision made any time before the end of January would be in ample time. When the election disclosed that we would be an outgoing Government, I considered that it would be unfair to tie my successor's hands, as he had almost two months to make hiß decision. "When he alleges that I was negotiating for a five million loan, I can only think he refers to this fact: The Treas ury drew my attention to the fact that if a prospectus was to issue on the London market in January, it would be advisable to post on the '? . an " ticipation of Sir Joseph Ward s i I agreed to this, but told them tkst if Sir Joseph Ward did not witb the London advice, he would have time to cable instructing the Hign Commissioner not to P™** 6 .. , . « prospectus. It is possible th warding these particulars w «nld anticipated that our req'H/ements would be five millions for the J® 00 ™' as that was onr normal borr .. that in no way embarrassed hands of my successor who could modify this to any extent he