King Country Chronicle. Wednesday, June 21, 1939. LOAN STALEMATE?
The reception given the New Zealand loan proposals in London cannot be held to be a happy one. Even apart from the question of New Zealand’s credit, the market is not a favourable one, and the recriminations which were, perhaps, to be expected, have found a prominent place in the English press. Even the Daily Herald, organ of the Labour Party, has to admit that conditions do not favour the type of loan that New Zealand wants, while the militant Labour
paper, Reynolds’ News, holds that
the conversion of the £17,000,000 loan at present has not the slightest chance of success, their contention being that the City is ready to blackmail a Government whose only fault is that it is Socialist. On the other hand, other newspapers hold that criticism of this Dominion’s financial and economic policy has a good deal to justify it, also that it would be impossible to raise money from the ordinary investor and the British Government has too many financial responsibilities to guarantee a loan. Before the London financial institutions give support to the loan, they will undoubtedly wish to have information and assurances as to the purpose of the loan and the aims of the Government. That the sterling crisis has been brought about almost solely by the Government’s policy is a fact which cannot be denied; the fault cannot be laid upon the banks or any other political party, and only to a limited degree upon overseas price trends. As a result New Zealand’s capacity to meet debt repayments is impaired, and before a loan is granted It appears that the financial institutions will have to be given assurances that future policy will increase repayment ability. It is interesting to note that the City editor of the News-Chronicle says: “Further depreciation of the exchange rate might be a better way of doing things.” Would such a policy find support from England?
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Bibliographic details
King Country Chronicle, Volume XXXIII, Issue 4800, 21 June 1939, Page 4
Word Count
327King Country Chronicle. Wednesday, June 21, 1939. LOAN STALEMATE? King Country Chronicle, Volume XXXIII, Issue 4800, 21 June 1939, Page 4
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