LOAN INTEREST.

Manawatu Standard, Volume LVI, Issue 183, 6 July 1936, Page 6

LOAN INTEREST.

DOAIINION’S PROPOSALS,

COAIAIENT IN LONDON

Per Press Association,

WELLINGTON. July 6. The following is an extract from a, cable dated July 2, received bv the Minister of Finance (Hon. W. Nash) from Sir James Parr, New Zealand 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 lorciblo reduction in interest rates, as the intention is 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 security 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 lm.s frequently been advocated by these columns in connection with non-convert-ible 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 period. 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 the British municipalities.

The Daily Express editorially says: Empire rates are too high, and if anybody’s business is going to Ik- 6liaved the bond-holders are due for the firstoperation.