NORMAL, PRUDENT PRACTICE”

Press, Volume XCVII, Issue 28573, 30 April 1958, Page 14

NORMAL, PRUDENT PRACTICE”

(New Zealand Press Association) WELLINGTON, April 29. The National Government’s borrowing of £25 million on the London market clearly demonstrated that when prices for primary produce were at unprecedented high levels its administration never fully appreciated the desirability of conserving overseas funds at a reasonable figure, said the Minister of Finance (Mr Nordmeyer) to-night. Mr Nordmeyer was replying to a statement by the Leader of the Opposition (Mr Holyoake) that the failure of the present Government’s London loan showed a lack of confidence by the British investor. "The loan was essential," said Mr Nordmeyer. “It is undeniable that £2O million will be available. To that exent, the loan cannot be described as a failure. “A large proportion of the loan being left with underwriters is not as damaging as Mr Holyoake tries to make out. It is nothing more than normal prudent practice for London Joans to be underwritten and the National administration itself took this course. "As Mr Holyoake ought to know, there are a number of risks and factors which influence the lending market at any particular time, and many of them are quite beyond a government’s control,” said Mr Nordmeyer.