THE INTERNAL LOAN

New Zealand Herald, Volume LXXV, Issue 23215, 8 December 1938, Page 17

THE INTERNAL LOAN

COMPULSION UNNECESSARY USE OF PEOPLE'S SAVINGS AVENUE FOR INVESTMENT [by telegbaph—OWN cobbespondent] WELLINGTON. Wednesday A report that the 'proposed internal loan to meet capital expenditure in connection with railway and electrical equipment, and for other public works outlay, was .likely to be compulsory was promptly denied by the Prime Minister, Mr. Savage, who declared that compulsion was quite unnecessary in a country like New Zealand. The Government's monetary policy, Mr. Savage said, was to use the savings of tjie people, plus public credit, for the development of New Zealand. His opponents had used it against him when he talked about using the people's savings, alleging they would be commandeered. "But my opponents knew better than that," he said. "We will borrow the people's savings and pay a decent rate of interest, and their investment will be as safe, and perhaps safer, than overseas. I know the people who are prepared to get a scare going because of the Government's policy, but it is a curious brand of patriotism the same people have been indulging in within the last few weeks."