BRITISH LOAN INTEREST

Evening Star, Issue 22383, 6 July 1936, Page 8

BRITISH LOAN INTEREST

MR SAVAGE NOT RAISING NEW POINT YEOMAN WORK FOR OTHER DEBTORS jt. [Peb United Press Association.] WELLINGTON, July 6. The following is an extract from a cable dated July 2, received by the Minister of Finance (the Hon. W. Nash) from the High Commissioner in London:— The ‘ Daily Herald ’ says there is only a minor decline following Mr Savage’s statement and recalls that there is unlikely to be any forcible reduction in interest, as it is the intention to approach investors through the British Government. It also recalls that one reason advanced is, “ that the whole economic structure has changed since the loans were made, and therefore it is not unreasonable for the Government to meet its creditors with a view to securing the equity,” and “ Such a reason is unlikely to receive much sympathy in investment quarters but the fact remains that New Zealand is only raising an issue which has frequently been advocated by these columns in connection with the non-con-vertible issues of British municipalities.” Even city opinions are veering round to the view that there is no necessity for money rates to rise again as in the war and post-war periods. If such be the case, every consideration should be given to a legitimate approach for alleviation, provided it is not accompanied by foolish threats. If Mr Savage succeeds in making out a good case for New-Zealand, he will have done yeoman work for other debtors, such as British municipalities. Once the principle is recognised, untold millions going in high interest could be realised for new projects, with permanent improvements in business activities and further relief for unemployment. The ‘ Daily Express ’ editorially says the Empire rates are too high, and, if anybody’s business is going to be shaved, bondholders are due for the first operation.