UNPAID INTEREST.

New Zealand Herald, Volume LXIX, Issue 21100, 6 February 1932, Page 9

UNPAID INTEREST.

POSITION IN LONDON. N.S. WALES DEFAULT. SILENT BONDHOLDERS. POLITICIAN'S COMMENT. LOST BRITISH SAVINGS. By Telegraph—Press Association—Copyright. (Received February 5. 5.5 p.m.) LONDON". Feb. 4. A curious feature about the default of New South Wales is the absence of any articulate protest on behalf of the bondholders who did not receive their interest on Monday. There have been no letters in the press, no questions in Parliament and no complaining callers at Australia House. Presumably the bondholders have taken their grievances to their bankers or brokers, because there is no lack of adverse private comment. Speaking at Poking, Sir Arthur M. Samuel, Conservative M P. lor Farniiam, Surrey, said :—" Between £2,000.00 D.(XX) and £5,000.000.000 in British savings have been lost in overseas investments during < the past 60 years." i The speaker urged the "-sing of i measures to prevent the flotation o! undesirable loans and to ensure that interest repayment was properly secured, perhaps by the hypothecation of specilio revenues" assigned to the service of foreign loans here. Every country in South America, with the exception of Argentina, was in cefault with external loans. STOCKS IN NEW YOBK. RECOVERY CONTINUED. FISCAL AGENT IGNORED. NEW YORK. Feb. 4. Australian stocks continued their re- ' coverv to-day on the New York market. ' More accurate explanations of the situation have begun to appear in the financial columns of the newspapers, and there is everv evidence that the bondholders have been reassured. It is interesting to note, however, that what is considered a seriouis breach of form between debtor and creditor as concerns New South Wales in the suspension of interest payments is said to have occurred. Bankers draw attention to the fact that the fiscal agent for the Mew South Wales loan has not received a single word of explanation from the New South Wales Government direct. It is being asked in Wall Street why Mr. Lang has i not seen fit to make an official communication to the bondholders liere.