OVERSEAS LOANS

Manawatu Standard, Volume LVI, Issue 183, 6 July 1936, Page 2

OVERSEAS LOANS

MINISTER’S PROPOSAL.

MR NASH EXPLAINS.

Per Press Association. AVELLINGTON, July 5.

The full text of Hon. AValter Nash’s London statement concerning overseas loans was to-d».y made public by Mr Nash. It reads:

“The reference by the Prime Minister concerning New Zeala.nd’s public debt domiciled in London was to the Government’s election policy, which stated that the British authorities would be asked to consider a readjustment on account of the increase in the burden of debt arising out of the fall in the British price level in recent years. In some cases it has been inferred from the Prime Minister’s statement- that the Dominion is experiencing difficulty in meeting its obligations in London. This is entirely wrong and an examination of the financial position of the Dominion will .show that such an inference is unwarranted. “For instance,, during the last financial -year the national Budget was balanced with a surplus of £230,000 and the revenues were and still are buoyant. The latent figures, expressed in New Zealand currency, show that exports for the 12 months ended May 31 last amounted to £52 630,000. an increase of £9.646,000 over the previous year and nrovidinit a surplus

over imports of £l4 284.000. “The balances held by the Reserve Bank of New Zealand and by the trading banks on account of New Zealand business amounted in New Zealand currency to £40.439.000 at the end oi May while the interest on the public debt’ payable in London at present amounts to £7,150,000 annually* “Recently a prominent British economist described New Zealand’s banking position as one of ludicrous liquidity the Reserve Bank’s reserves being equal to 96 per cent, of its notes a.nd other demand liabilities. There is no question of the Dominion’s ability to meet its obligations, and as the Prime Minister emphasised in his statement nothing in the nature of either default or repudiation is contemplated. New Zealand has. and always will, live up to its commitments. “The idea, expressed by the Piime Minister was that when we are m I,ondon opportunity will ba taken to ascertain bv discussion with the parties concerned what can be accomplished bv conversion and consolidation public debt domiciled in London.