FINANCING TRADERS

Evening Post, Volume CXXV, Issue 28, 3 February 1938, Page 15

FINANCING TRADERS

EARTHQUAKE LOANS

CONVERSION SOUGHT

3 Some surprise was expresse'd by the j , Minister of Finance (the Hon. W. ' Nash) at Napier on Monday when a - suggestion was made on behalf of the T Hawke's Bay Stock Borrowers' Asso- ) ciation that there should be a conver- • sion into grants of all loans advanced tby the Government following the 1931 earthquake. The Minister, how- | ever, indicated that he would endeav- ) our to devise a method of easing the , position which at present was occat sioning difficulty to the retailers trei ports the "Herald-Tribune"). ■ Mr. 'H. E. Edgley, who acted as ■ spokesman for the deputation," explain- '. ed that, in many instances, the adi vances made to shop-owners had been insufficient to enable them to re-estab- . lish their businesses. As time went on s many of them had been unable to meet f their commitments and had been • obliged to seek relief. Profits from s business were the only means of.rei payment of the loans, and, up to the I present, these for,the most part had i been'negligible, although they had im- - proved slightly of late. Unless relief ! was forthcoming the position for many ■ would be extremely serious. Whole- ! salers had assisted in granting extend- : ed credit but such a state of affairs, '. said Mr. Edgley, could hot.go on ! indefinitely. ' , i j "If the retailers had not had the courage to re-open after the, earthi quake the position in regard to the rei building of Napier would have been a ■ different matter," said Mr. Edgley. ■ «One might'safely say that the restoration of Napier is largely due to the stock borrowers. The conversion ; into grants of the loans would probably not involve-more than £100,000." '■ The. Hon. .W. E. Barnard, M.P., stressed the difficulty of business men in Napier and Hastings in obtaining credit to carry on their businesses, when every addition to stock increased the security of the Government as first mortgagee with a floating debenture.'Traders: in both Napier and Hastings had been hampered through being unable to obtain capital. The problem of re-financing required something.'being done that would enable the- stock borrowers to meet the demands of trade unhampered, as they ■ had been in the past. "I Will be glad to Investigate the position," said the Minister in- reply. "I did not-think that the question of writing off the loans would be'raised, because if that were -done, obvious difficulties must arise'.. People who borrowed' f^pm outside sources; would be seeking'.'afsimilarrelief. There would also be those who have repaid their debts tcrthe Government who would have to be! considered. \ > "If there is a practical procedure— ; and I cannot see one at the moment— ,- by which you can be freed.from your difficulty^ I will be glad to go into it."