"THE GOVERNMENT'S BAD FAITH"
Sir, —Under the above heading your correspondent "Perturbed" calls attention to our Government's default in payment of interest to its New Zealand bondholders. Such a breach of honourable treatment is not likely to assist in the flotation of their current loan now on the market. The deduction of 10 per cent from each payment due cannot be called > in any sense an attempt to reduce rates of interest, as it is levied equally upon the per cent stock, the 5 per cent and the 5j per cent. Equally unjustified is the deduction of 10 per cent from interest received from local body debentures. These deductions are made because the debts are of former years. Why should interest contracts of former years" be saddled with this penalty when those of the present day are to be allowed to escape it ? The whole business is not likely to induce i confidence. In a few years time present investments will be of former years and they may be pounced upon as the present ones are. C.M.P*
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Bibliographic details
New Zealand Herald, Volume LXIX, Issue 21346, 22 November 1932, Page 12
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177"THE GOVERNMENT'S BAD FAITH" New Zealand Herald, Volume LXIX, Issue 21346, 22 November 1932, Page 12
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