RECONSTRUCTION LOAN

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 13

RECONSTRUCTION LOAN

Sir, —It is to be hoped that the proposal to borrow £10,000,000 as a "reconstruction loan" will be definitely rejected. The name sounds enticing, but a "rose by any other name would smell as sweet." Sooner or later the people of this country would have to repay the sum borrowed, together with interest. What with Government and local body debt—to say nothing of private debts —we have more than sufficient on our shoulders at the present time. According to recent returns, our bank deposits have increased by £.3,000,000 during tho past year, while in England they are up by £270,000,000. Presumably, these figures will bo added to during the coming year. To find an outlet for this capital is taxing the brains of the holders. What with difficulties with their debtors, labour and other troubles, they naturally prefer Government securities. These have been forced to such a level that the interest earned is very small, and will get smaller unless fresh loans are available. If the Government refuses to load this country with fresh debts, surplus capital will bo forced to find an outlet in industrial or other similar securities, with a consequent benefit to everybody. I would suggest that the holders of the £10,000,000 follow this idea, rather than unload it upon already overburdened taxpayers. A.L.L.