The Manawatu Daily Times Fall of Interest Rates

Manawatu Times, Volume LV, Issue 7032, 16 December 1932, Page 6

The Manawatu Daily Times Fall of Interest Rates

The oversubscription of the £300,000,000 conversion loan at the beginning of last month completed the British Government’s present programme of refinancing as no further portion of the debt reaches maturity until 1934. By means of the five conversion operations completed during the year, a gross saving in interest amounting to £40,000,000 annually has been effected; in addition, there is a current saving of several millions on the floating debt owing to the low rates at which Treasury bills have been sold. Commenting on the announcement of the November loan, the London Times said: "The lightening of the burden of debtors—whether Governments, corporations, or traders —has become one of the most, pressing of economic problems owing to the catastrophic fall in the price level over the last twelve years, and voluntary conversion offers the best possible solution. The moral of conversion is that no interest, whether capitalist or labour, can effectively isolate itself, or should attempt to do so, from a world-wide economic movement such as the fall in prices. A new level is in process of being established, involving nominally downward adjustments in which everyone must participate. The fact that the adjustments are downward does not mean that the world is poorer. On the contrary, when the adjustments have been completed, the fact that the world is richer in material things, both actually and potentially, will be more apparent than it is to-day.” Necessities and Luxuries "The national income is received through various channels, and is distributed by the wealthy, the well-to-do and those of small but sufficient means passing it on to wage-earners in return for their products or services. Any balance not employed in this chain of distribution must be supported by donations, raised by taxation of those who have a share of the national income,” says Mr. Julius L. F. Vogel, in a letter published in the London Times. "If those whose incomes suffice, not only for the necessities, but also for a reasonable proportion of luxuries, decide to buy nothing but necessities, and to store the surplus, there must be a cessation of the incomes of those who supply such luxuries either in goods or services. The problem for those so happily placed as to be able to purchase some luxuries resolves itself into choosing the way of spending their money so that it passes into channels giving employment at home. . . . Large-scale municipal and Government enterprises are an extravagant method of distributing our income. In the first place they entail taxation to secure the money, and this involves expense. In the next they concentrate the work on certain classes of labour, and leave those employed on all kinds of established luxury trades and occupations out of work, since the taxdrained purchaser of their wares and services can no longer buy. To find work, for the unemployed is a great objective, but best of all is to find work for them in their own trades and thus to utilise their education and skill and existing plant and machinery.”

The monthly meeting of the Plunket Committee Trill be held at the Council Chambers at 2.30 to-day.

"With the return to more normal times thero will bo a demand for the services of girls, and in the competition for positions that will ensue the best equipped will bo the fortunate ones," declared Mrs. Rhodes, Principal of the Palmerston North Girls’ High School, when speaking at the breakingup ceremony last evening. "I would impress on parents that it is much better to havo their children at school while waiting. They can. improve their equipment and employ their time profitably. To spend the waiting time in idleness would be folly* A

Smiling faces were the order of the day at the Palmerston North orphanages ivhen it was announced that the Manawatu Automobile Association was arranging an outing to the Ashhurst Domain next Wednesday afternoon, when the children will be given toys and other things in order that they may carry on in the New Year with happy recollections of the festive season. The Automobile Association is appealing for cars to assist with the function.

The house-of-cards record seems to have been obtained by Mrs. Fox, of Tonbridge, lvont, who has built ono of 26 storeys. It is one of the most innocuous forms of architecture, and it carries the sound moral for all human enterprises that the higher the edifice, the greater the. hazard.