NATIONAL DEBT

King Country Chronicle, Volume XXVI, Issue 3400, 30 July 1932, Page 5

NATIONAL DEBT

CONVERSION PROPOSAL. LOWER RATE OF INTEREST. The suggestion advanced on Thursday by Dr. H. Belshaw, professor of economics at Auckland, University, that consideration should be given the question of converting all of New Zealand’s indebtedness to a lower rate of interest is favourably commented upon in the city. One opinion expressed was that the launching of such a project would considerably expedite general recovery. “I have long held the view that a conversion of the internally-held debt should have been undertaken as an alternative to the interest reduction and stamp duty measures,” said Mr. A. M. Seaman, president of the Auckland Chamber of Commerce. “The National Expenditure Commission was rather favourable towards this principle, and elaborated the idea in its report to the Government. I believe that if it were practicable to undertake such a scheme it would be desirable to convert the National Debt, whether held internally or externally, to a lower rate of interest. When the report of the commission was published I expressed the opinion that the most desirable method of effecting a reduction in interest on locally-held debt would be by the conversion method. The other method proposed was apparently adopted because it was likely to give immediate benefits. However, the commission gave a clear indication that the conversion should not be lost sight of.”