CLEARED UP

Northern Advocate, 20 December 1928, Page 4

CLEARED UP

LONDON MONEY DIFFICULTY. vSIR JOSEPH WARD MOVES. (Per Press Association. —Copyright.) WELLINGTON, This Day. iSir Joseph Ward made a statement today in regard' to the much discussed finance difficulty in London. It had been hinted, he said, that the conversion of 1929 maturities was the difficulty, but, while arising out of this, the proposals before him went much further, and involved a marked departure from what had been the usual course in London finance, and had an important bearing, in his opinion, on the policy the country endorsed at the election. As soon as he realised this, he had given very serious consideation to a review of'the whole position so as to decide the best course to pursue in the interests of the country. This he had now been able to clear up, and he had cabled London his decision, the result of which, when the whole transaction was completed, would become public. At present. details could not be discussed.

SEVENTY MILLIONS. 'SIR JOSEPH WARD EXPLAINS. MISUNDERS'pAySTDiLNG REMOVED. (Per Press Association. —Copyright.) WELLINGTON, This Day. “As there has been some misunderstanding regarding my policy of borrowing, as enunciated in the country, particularly in reference to 70 millions sterling, I wish to make it clear,” said Sir Joseph Ward to an interviewer, “that at no time have I suggestedl that iseventy milions sterling was to be borrowed in one year.. A similar impression may have been conveyed in England. Obviously such a proposal -was out of the question, as it would so disturb the country that no responsible man would make such a suggestion.

“What I .proposed was expending, over eight to ten years, .an amount up to sixty millions iby loan to settlers, an average of six to eight millions a year, and for the completing of five lines of main trunk railway connections, ion which up -to ten millions should be expended during the next three or four years.

“The Public Works estimate of the cost of the whole of these railways is £7,500,000, added to an extra amount for possible contingencies and the cost of rolling stock. ‘ * The sixty millions was for State advances to settlers and primary producers, and promoting small settlement on proper valuations being obtained.

“Under the whole of the proposals for the two purposes there is no taxation required, as the , .cost of . the money is paid, entirely by the settlers who borrow, and by the working of the railways when they are completed as a productive asset, in addition to which the whole borrowing proposals proposed by me do not amount per annum to the average amount the country has borrowed during the last three years. - “There has been -so much misrejpresentation in the matter that I feel it is due to the British investors, who have always treated this country well, that they should not assume ’ without proper information that there is a policy of extravagance inaugurated, and I wish to state definitely that there is oio intention on the part of the Ward Government to abuse either its powers or credit. 77