LOAN PARLEYS

Evening Post, Volume CVIII, Issue 24, 27 July 1929, Page 10

LOAN PARLEYS

REASONS FOR SECRECY

PUBLICITY DESTRUCTIVE

The reasons i'or secrecy in connection with national loan negotiations were explained by the Prime Minister (tho Bight Uou. Sir Joseph Ward) in the Houac of .Representatives yester day in replying to a question having relation to tho recent dispute between tho Prime Minister and the late Minis tor of Financo as to why tho Govern ment is unable to approach the London money market for two years. Mr. W. E. Barnard (Napier) asked tho Prime Minister whether he did not consider tho Government, and not the Treasury Department, was the better judge as to whether correspondence re lating to national borrowing transac tions should be placed 'before the House of .Representatives, and whether the Government would itself decide as to the propriety or otherwiso of making all such correspondence available for tho information of tho House.l The Prime Minister (the Right Hon Sir Joseph Ward) stated that what Mr Barnard was asking for was impossible in practice. At times financial negoti ations went on for weeks at a time by cable, and if they were made avail able to the public all chance of proper negotiations being conducted would bf destroyed. In addition to that, the House might not be sitting when the negotiations were going on. Moreover, it was against all precedent in connoc- | tion with tho work of the Treasury for such negotiations ever to bo placed on tho table of the House. It would destroy tho very life blood of the Treasury. Mr. Barnard: "The Treasury is superior to tho Government, then?" Mr. H. 13. Holland (Bullcr): "That is tho point." SUPERIOK TO ALL. "That is nonsense," said the Prime Minister. "The Government is superior to them all, but the Government has to recognise the ordinary ethics and principles that arc applicable at all times to financial negotiations. You might just as well expect a person in private life who was in a difficult financial position to proclaim to tho world he was applying to certain people to arrange his finance." Mr. Holland: "Partners in a business always know the details of the business." Sir Joseph: "But tho honourable gentleman is hot a partner in the Treasury. '' Opposition voices: "Oh, yes, surely." A voice: "Parliament is." Sir Joseph: "If tho opportunity ever occurred for the honourable gentleman to become Finance Minister, ho would not bo allowed to put a foot inside the Treasury.'' Tho Hon. W. Downie Stewart: "Will the Prime Minister place tho papers on the tablo, then?" Tho Prime Minister: "The honourable gentleman has never done so. Even if lie had been asked to do so ho would not have done it." Mr. Stewart: "In 1912, when a dispute aroso regarding tho terms of a loan, correspondence with tho High Commissioner was laid on the table." Sir Joseph: "Papers relating to negotiations in connection with a loan have never been laid on the table of the House, aud have never been published. If I wero able to lay them on the table the honourable gentleman would not have a leg to stand on in tho malter'of the dispute betwen him aud me." Mr. W. E. Parry (Auckland ,Cciitral) : "How can wo judge I Sir Joseph: "In practice, what the honourablo gentleman looks upon as easy to do would be impossible to carry out without doing a great deal of damage and killing tho negotiations."