MR STEWART’S MISSION

Manawatu Standard, Volume LII, Issue 226, 24 August 1932, Page 6

MR STEWART’S MISSION

Further reference to Hon. AV. Downie Stewart’s mission to London lias been made by the Prime Minister, wbo, without admitting the nature of the discussions to be embarked upon, states that much may be done with the object of easing the burden of overseas debt. It is possible, Mr Forbes says, that Hew Zealand’s annual interest bill may be reduced without creating undue disturbance and without affecting our credit in London. The Minister of Finance will be accompanied by the Secretary of the Treasury (Mr A. 1). Park) and, during their stay at Ottawa, they have no doubt discussed certain aspects of the Dominion’s finances with the Chancellor of the Exchequer (Mr Heville Chamberlain) and British Treasury representatives. The Prime Minister hints that it may be found desirable to convert the short-dated loan of £5,000,000 at 5 per cent., raised in London in June, 1931, while he also mentions the possibility of converting the funded war debt of £24,000,000. Of this sum only £11,100,000 was included in the British war loan conversion, the present total being £10,210,000. British bondholders are concerned with the balance should it be desired to convert it at a lower rate, the Prime Minister states. Since the outstanding success of the British war loan conversion became apparent, attention has been focussed in the Dominion upon its funded debt, which bears interest at the rate of 5 per cent. Mr Coates has suggested that there is a prospect of this being reduced to 3$ per cent., the rate of the conversion in Great Britain. The total annual- payment on the debt is £1,651,930, which includes sinking fund, under which it is planned to wipe out the debt by 1958. A reduction of interest to the rate stated would mean a very substantial saving to the Dominion, which would, of' course, progressively decrease with the years as the amount of principal paid off became greater. Great Britain having extended the principle of the Hoover moratorium to this debt, payments have been suspended since June of last year, and the Budget estimates for this financial year again take this factor into consideration. Mr Downie Stewart is eminently fitted for the mission he has been charged with, and though his absence from the Dominion when Parliament is sitting may_ be unfortunate, he can be relied upon to discharge the business expeditiously so that his return home will not in any way be delayed.